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Texas insurance glossary

Property damage liability

Property damage liability is the part of an auto policy that pays for damage the insured driver causes to other people’s property, most often another vehicle.

Sources checked

It is the third number in 30/60/25, and the Texas minimum under § 601.072 is $25,000. It reaches more than cars: a fence, a storefront, a utility pole and a parked trailer are all somebody else’s property.

It never repairs the insured’s own vehicle. That is collision coverage, and a driver carrying only the state minimum has bought none of it.

The distance between a $25,000 limit and what a late-model vehicle costs to replace is the argument the auto insurance page makes.

Sources: Tex. Transp. Code § 601.072 — minimum coverage amounts; TDI — automobile insurance guide (CB020). Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • 30/60/25 30/60/25 is the shorthand for the minimum auto liability limits Texas requires: $30,000 for one injured person, $60,000 for a crash, and $25,000 for property damage.
  • Collision coverage Collision coverage pays to repair or replace the insured’s own vehicle after it hits another vehicle or an object, or overturns, whoever was at fault.
  • Liability coverage Liability coverage is the part of an auto policy that pays other people for injury or damage the insured driver causes; it repairs nothing belonging to the insured.
  • Diminished value Diminished value is the amount a vehicle is worth less after an accident than it was worth before it, even once the repair has been completed properly.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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