Bodily injury vs Property damage liability
Updated for plan year 2026
In short
These are the two halves of the liability coverage every driver needs. Bodily injury (BI) liability pays for other people's injuries when you cause a crash; property damage (PD) liability pays for the other party's damaged property: their car, a fence, a storefront. Both protect other people, not you, and both are written as limits you should size to your assets.
Side by side
| Dimension | Bodily injury | Property damage liability |
|---|---|---|
| What it pays for | Other people's injuries: medical bills, lost wages, legal defense | Other people's property: their car, buildings, structures |
| Whose losses | Other people, not you | Other people's property, not yours |
| How it's written | Two numbers (per person / per accident) | A single per-accident limit |
| State minimums | Often dangerously low | Often dangerously low |
| Covers your own car? | No | No, that's collision |
When Bodily injury wins
Bodily injury liability is the coverage most worth raising. A single serious injury can generate hundreds of thousands in medical bills and a lawsuit, and state minimums (often $25,000 per person) don't come close. Sizing BI to at least your net worth is the cheapest way to shield your home and savings from a claim.
When Property damage liability wins
Property damage liability covers the cars and structures you might damage. Modern vehicles are expensive, so a minimum PD limit can be exhausted by one crash into a new SUV or a building. Raising PD alongside BI keeps you from paying the excess out of pocket after an at-fault accident.
The bottom line
BI and PD aren't either/or: you need both, and both usually need to be higher than the state minimum. Together they're your liability coverage; add an umbrella policy on top once your assets exceed what the underlying limits protect.