Different definitions and acronyms may be used in various parts of the USA to mean the same thing. Motorists must insure their vehicles to comply with the laws of their state. And this coverage may have distinctive names depending on where you live. So, we will have a look at what is PLPD insurance?
PLPD insurance is a term usually used to mean basic liability vehicle insurance. PLPD derives from two essential components of a minimum required cover in your state and stands for Personal Liability (PL) and Property Damage (PD). Together they make up a basic policy often known as “bare bone” and it is the lowest coverage you can buy.
Personal Liability refers to Bodily Injuries you may cause to others as a result of an accident. Property Damage is self-explanatory and pays for damages you caused to other people’s cars and property (including houses, fences and road signs) in an accident.
In order for you to be liable for damages and injuries you need to be at fault in an accident. In other words, your actions or negligence must cause the accident that resulted in physical and financial suffering for others. Liability coverage doesn’t have deductibles. Also it doesn’t cover your own vehicle.
When May PLPD Auto Insurance Make Sense?
People’s needs are personal and there may be budgetary restrictions even if you want to purchase better coverage. So, you need to consider your own circumstances and budget and see which type of a policy is best for you. Here are a few situations in which you may be alright with a minimum state required cover.
- If this is all you can afford there is not much to discuss about. It keeps you legal on the roads and prevents fines for driving uninsured. And in no fault states it comes with a valuable PIP. Always remember that getting a few PLPD insurance quotes will help you avoid paying too high premium, especially when money is tight. You can get quotes right here.
- This may be a good solution for good drivers who don’t anticipate making claims and financially able to pay for repairs to their cars or cope with a total loss.
- Your automobile isn’t worth much anyway to worry about and insure.
- This may be for an old vehicle that is hardly used and you may have full coverage for the new one.
- You may have a starter car and saving money for a new one. Getting experience and building insurance history with an older auto may be a good option for a teen driver.
You are in a position to choose only if you own your auto outright. When you have a loan on it you will need to follow the requirements of your lender. That usually means that you cannot just buy a bare bone policy. You will probably need to have at least Collision and Comprehensive coverage too.
This term is commonly used in Michigan, which is ironic because you need to buy Property Protection Insurance (PPI) and Personal Injury Protection (PIP) as well to make up the basic coverage in this state. In other words, although it may only have the two covers in the name your typical liability policy in Michigan would have four components.
It is one of the few no fault states in the country and here is what you need to buy to comply with the law for minimum automobile insurance in Michigan.
|Bodily injury or death per person||$20,000|
|Total for bodily injury or death per accident||$40,000|
|Property damage liability||$10,000|
|Property protection insurance (PPI)||$1 million|
|Personal injury protection (PIP)||Medical & work loss|
The distinction between property protection and property damage coverage is that a car falls into property damage category when it involved in an accident. However, it falls into property protection when it is damaged in a properly parked position (immobile property).
Since no fault states wouldn’t allow you to sue third parties for your injuries you will be required to buy your own Personal Injury Protection coverage for yourself and your family.
Great Lake State has one of the highest rates in the country, partly due to unlimited nature of Personal Injury Protection and partly because of high number of uninsured motorists. That may explain why motorists may be looking for the cheapest policy they can get so that they can afford it.
You will need to shop around for cheap PLPD Auto Insurance Quotes in Michigan like everywhere else in the US. In states with high rates, quotes offered by auto insurers can vary substantially and the difference in price between the cheapest and most expensive can be as much as 7 – 8 times.
You will find the average costs for a basic and full coverage for every state in that post that allows you to see how much more you need to pay to get a decent level of coverage.
What Does PLPD Vehicle insurance Cover and Is It Enough?
As demonstrated above, you only provide coverage for the damages you may cause to third parties and have PIP (only no fault states require PIP) for yourself and your family when you buy a PLPD policy. In simple terms, any damage to your car isn’t covered and therefore you will need to pay them out of pocket. If you want your auto insured properly you will need to add at least Collision and Comprehensive Coverage to your Policy that makes it full coverage.
Furthermore, minimum $20,000/$40,000/$10,000 liability coverage is pretty limited. A highly recommended level of coverage is $100,000/$300,000/$100,000. Providing you can afford the premium and have a nice car you should try to get a full policy that comes with decent level of liability protection.