What is the minimum liability insurance required for Property Damage?

The minimum liability insurance required for property damage is typically set by state laws, which can vary. In many states, the minimum coverage amount required for property damage liability is often $25,000. This amount is designed to cover damages to someone else's property in the event of an accident for which you are at fault. It ensures that you can compensate for damages such as vehicle repairs or damages to structures, which can be significant.

While $20,000 might seem reasonable, it often falls short in states that establish higher minimum requirements to ensure sufficient coverage for property damage. Consequently, selecting $25,000 aligns with the common legal requirements and helps ensure that drivers can adequately cover potential damages. Being aware of these boundaries is crucial for responsible driving and compliance with state laws.