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Car insurance glossary

What is property damage liability?

Property damage liability pays for covered damage you cause to someone else's vehicle or property.

Also called: PD liability

Glossary date: January 19, 2026

How it works

Covered property can include another car, a fence, a building, or a road sign. This coverage does not repair your own vehicle.

Example

You slide into a parked car and damage its door. Property damage liability may pay the repair cost up to your limit.

Why it matters

Modern vehicles and roadside structures can be expensive to repair, so a small limit may run out.

What to check on your policy

Look for the property damage amount in your liability limits and note whether it is a per-accident limit.

Put the terms into context

Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.

Sources and further reading