Best Property Damage Liability (PD) Auto Insurance Companies (2021)

The best property damage liability (PD) auto insurance companies offering the cheapest average rates to drivers are GEICO and USAA. Property damage liability insurance is legally required in almost every state. Used to cover the cost of damage to another person’s property when you’re the at-fault driver in an accident, affordable property damage liability auto insurance rates cost around $40 per month on average.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 26, 2022

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Things to Remember

  • The best property damage liability (PD) auto insurance companies are GEICO and USAA
  • Property damage liability auto insurance typically costs around $40 per month
  • Liability auto insurance is a legal requirement in almost every state

Almost every state requires liability auto insurance coverage as part of the legal minimum requirements. The best property damage liability (PD) auto insurance companies offering the lowest average quotes to drivers are GEICO and USAA.

Nationally, the average property damage liability auto insurance rates cost about $40 per month. However, your age, driving record, and ZIP code impact your overall auto insurance premiums.

Below, compare property damage insurance costs from the top providers across the country, and determine the best property damage liability auto insurance company for you.

After learning how to secure affordable property damage liability auto insurance, remember to enter your ZIP code into our free quote tool above to compare rates from the best providers near you.

What are the best property damage liability auto insurance companies?

The best property damage liability auto insurance companies are GEICO and USAA. Both providers offer the lowest base quotes to drivers in almost every state.

However, not every insurer is active or available in every part of the country.

Plus, factors such as your age, ZIP code, driving record, and more will influence your total costs.

So in the table below, compare the average annual auto insurance rates from our top recommended companies.

Average Annual Auto Insurance Rates by Provider
CompaniesAverage Annual Auto Insurance Rates
Allstate$4,919.79
Farmers$4,999.27
GEICO$2,859.29
Liberty Mutual$6,540.73
Nationwide$3,940.25
Progressive$4,218.00
Safeco$3,035.17
State Farm$3,855.75
Travelers$3,964.79
USAA$2,981.48
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The premiums above reflect complete policies from across the country, including but not limits to only property damage liability coverage.

GEICO Auto Insurance Company lands in our number-one recommended spot because the provider is available to every driver and underwrites policies in all 50 states.

Known for providing more affordable rates to younger drivers, GEICO also offers dozens of auto insurance discounts that stack, leading to even better prices.

USAA Auto Insurance Company is next on our list. Usually, this provider offers the cheapest average quotes, but only military personnel and their families can use its services.

However, just like GEICO, USAA also provides several great discounts that will lead to even better savings.

Safeco Auto Insurance Company is our third recommended property damage liability auto insurance provider. Where Safeco is active, it often offers competitive base quotes to drivers. However, it is unavailable in parts of the country.

State Farm Auto Insurance Company is our final recommendation for property damage liability insurance. This provider sells policies in all 50 states but offers fewer discounts than some other insurance companies.

While the following providers did not make it into our top four spots, these insurers still offer competitive property damage liability insurance rates:

To find your lowest property damage liability auto insurance quotes, compare rates online from multiple companies.

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What is property damage liability auto insurance?

You might wonder, does liability insurance cover my car if someone hits me?

In truth, your property damage liability auto insurance pays for damage to another person’s property resulting from an accident that you cause.

So if another driver hits you, you’d file a third-party claim through their insurance provider, not your own.

Also, if another driver ever sues you, liability insurance covers your legal fees.

It is one of two standard liability insurance types legally required in most states, along with bodily injury liability insurance.

What does property damage liability insurance specifically cover? Destruction to the other party’s home, business, vehicle, yard, or other property up to an established legal maximum dollar limit per accident.

Remember, your liability insurance does not cover your property. For policies that protect your car or possessions, invest in collision and comprehensive coverage.

Similarly, property damage liability insurance does not cover your medical bills or the hospital costs of the other driver.

Instead, your bodily injury liability auto insurance pays for their medical bills.

Medical payments (MedPay) coverage and personal injury protection (PIP) insurance are the policy types that help with your hospital fees.

How much does property damage liability auto insurance cost?

On average, property damage liability insurance costs $40 per month and usually includes bodily injury protection.

But it ultimately depends on the level of coverage you purchase. Higher limits lead to higher premiums.

Also, your driving record impacts your rates. Expect any at-fault accidents or traffic citations on your history to increase your liability insurance costs.

The table below compares the average liability auto insurance rates in each state. Find yours below.

Average Annual Liability Auto Insurance Rates by State
StateAverage Annual Liability Auto Insurance Rates
Alabama$394.21
Alaska$539.68
Arizona$508.76
Arkansas$394.13
California$489.66
Colorado$520.04
Connecticut$650.94
Countrywide$538.73
Delaware$799.30
District of Columbia$628.82
Florida$857.64
Georgia$557.38
Hawaii$458.54
Idaho$344.29
Illinois$446.72
Indiana$382.68
Iowa$299.18
Kansas$358.24
Kentucky$529.21
Louisiana$775.83
Maine$338.87
Maryland$609.74
Massachusetts$606.04
Michigan$795.32
Minnesota$456.82
Mississippi$460.50
Missouri$415.88
Montana$386.29
Nebraska$364.64
Nevada$681.56
New Hampshire$400.56
New Jersey$869.57
New Mexico$488.03
New York$804.51
North Carolina$359.42
North Dakota$298.18
Ohio$397.11
Oklahoma$461.01
Oregon$584.13
Pennsylvania$499.06
Rhode Island$759.80
South Carolina$527.09
South Dakota$300.22
Tennessee$413.91
Texas$528.75
Utah$497.53
Vermont$343.12
Virginia$425.61
Washington$596.67
West Virginia$491.83
Wisconsin$374.37
Wyoming$321.04
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Keep in mind that the totals above reflect both property damage and bodily injury liability costs.

Typically, doubling or even tripling your liability levels does not mean your insurance premiums will double or triple.

In fact, through some providers, switching from $10,000 to $100,000 worth of coverage only increases rates by $5 per year, no matter your driving background or vehicle make and model.

How much property damage liability auto insurance do you need?

By law, most states require drivers to carry a minimum level of liability insurance.

Usually, you purchase property damage coverage per accident alongside bodily injury liability coverage, which is per person and per accident.

So you might see liability limits written in the following format: 25/50/10.

That means the policy has limits of $25,000 per person and $50,000 per accident in bodily injury liability coverage, plus $10,000 in property damage liability coverage per accident.

Some states allow you to waive auto insurance if you prove financial security, like New Hampshire and Virginia.

However, to opt-out of coverage in some states, you must deposit significant funds or post a bond to be explicitly used if you cause an accident. So even in those states, most drivers choose to carry auto insurance.

To determine the minimum property damage liability auto insurance levels you’re required to purchase, find your state in the table below:

Minimum Property Damage Liability Auto Insurance Limits by State
StateProperty Damage Liability Auto Insurance Minimum Requirement
Alabama$25,000
Alaska$25,000
Arizona$15,000
Arkansas$25,000
California$5,000
Colorado$15,000
Connecticut$25,000
Delaware$10,000
District of Columbia$10,000
Florida$10,000
Georgia$25,000
Hawaii$10,000
Idaho$15,000
Illinois$20,000
Indiana$25,000
Iowa$15,000
Kansas$25,000
Kentucky$25,000
Louisiana$25,000
Maine$25,000
Maryland$15,000
Massachusetts$5,000
Michigan$10,000
Minnesota$10,000
Mississippi$25,000
Missouri$10,000
Montana$20,000
Nebraska$25,000
Nevada$20,000
New Hampshire$25,000
New Jersey$5,000
New Mexico$10,000
New York$10,000
North Carolina$25,000
North Dakota$25,000
Ohio$25,000
Oklahoma$25,000
Oregon$20,000
Pennsylvania$5,000
Rhode Island$25,000
South Carolina$25,000
South Dakota$25,000
Tennessee$15,000
Texas$25,000
Utah$15,000
Vermont$10,000
Virginia$20,000
Washington$10,000
West Virginia$25,000
Wisconsin$10,000
Wyoming$20,000
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State auto insurance limits are usually relatively low. So if the cost of damage to property in an accident exceeds your liability limits, you’re responsible for paying for the rest out of pocket.

According to the Insurance Information Institute (III), the average property damage liability insurance claim in 2019 cost $4,525, up from $2,881 in 2010.

But major accidents can cost as much as $25,000 or more if a fatality is involved.

Fortunately, you always have the option to purchase higher limits than what your state legally requires.

If it fits your budget, it’s worth investing in higher liability levels. Experts recommend buying levels equal to your net worth.

Higher-income drivers might consider supplementing property damage liability insurance limits with a personal umbrella policy.

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How do you file a property damage liability auto insurance claim?

If you’re found liable for an auto accident involving another party, the other driver files a claim with your liability insurance policy to cover their property damage expenses.

If the driver also experienced any medical issues, the claim also accesses your bodily injury liability insurance.

But there’s no circumstance under which you will need to make a claim against your own liability insurance policy.

Your property damage limits determine how much the insurance company is willing to pay for a single accident.

If the damage exceeds your insurance levels, the other driver can pursue you to pay the rest out of pocket. In some cases, this could lead to a civil lawsuit.

Best Property Damage Liability (PD) Auto Insurance Companies: The Bottom Line

Fortunately, most drivers easily secure cheap liability auto insurance coverage because it’s legally required in practically every state.

Liability insurance ensures you have the financial means to pay for any potential damage you cause to a third party due to a car accident.

Depending on your budget, consider purchasing higher limits than your state’s minimum property damage liability requirements to protect yourself from financial hardship in the event of a major accident.

Now that you’re ready to buy property damage liability auto insurance, enter your ZIP code into our free rate tool below to compare quotes from reputable providers near you.

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