Insurance Fundamentals

Liability Car Insurance: Property Damage (PD)

Required liability insurance has two parts: bodily injury (BI) and property damage (PD) usually combined together into one policy.

The property damage (PD) section of a liability policy covers damages to the other driver's car, personal property in that car and damage to other property such as to a fence or home or damage to the property of a pedestrian. Other expenses such as towing, storage, and the cost of a rental car may also be covered.

The dollar amount that the car insurance company will pay is usually calculated by that insurer's adjuster who then negotiates with the injured party for a final settlement.

Typically the minimum amount required for this policy is less than that required for bodily injury (BI) and is usually listed as the last of the three numbers for a total combined liability policy, such as:50/100/25

In this example the last number refers to a property damage (PD) limit of $25,000 for each accident. The first two numbers refer to the bodily injury (BI) coverage.