Different definitions and acronyms may be used in various parts of the USA to mean the same thing. Motorists must buy auto policies to comply with the laws of their state. And this compulsory coverage may have distinctive names depending on where you live or whom you talk to. So, we will have a look at it.
PLPD insurance is a term usually used to mean basic liability vehicle insurance. It derives from two essential components of a minimum state required cover 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 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 possessions (including houses, fences and road signs) in an accident.
In order for you to be liable for damages and hurts 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. It doesn’t have deductibles And 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 a better package. So, you need to consider own circumstances and budget and see which type is best for you. Here are a few situations in which you may be alright with the minimum required limits.
- If this is all you can afford there is not much to discuss about. It keeps you legal on the roads and prevents fines. Always remember that getting a few 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 or cope with a total loss.
- The automobile isn’t worth much anyway to worry about.
- This may be for an old vehicle that is hardly used and you may have a better plan for the new one.
- You may have an old clunker and saving money for a new one. Getting experience and building 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 it outright. When you have a loan on it you will need to follow the requirements of the lender. That usually means that you cannot just buy a bare bone policy. You will probably need to have at least Collision and Comprehensive 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 here. In other words, although it may only have the two in the name a typical liability policy 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 is that a car falls into latter category when it involved in an accident. However, it falls into former when it is damaged in a properly parked position (immobile).
Since no fault states wouldn’t allow you to sue third parties for medical bills you will be required to buy Personal Injury Protection for yourself and family.
How Much Is PLPD Car Insurance in Michigan?
Great Lake State has one of the highest rates in the country, partly due to unlimited nature of PIP and partly because of high number of uninsured motorists. That may explain why motorists may be looking for the cheapest they can get so that they can afford it.
You will need to shop around for cheap quotes like everywhere else. In zip codes with high rates, quotes offered can vary substantially and the difference in price between the cheapest and most expensive can be as much as 7 – 8 times.
What Does It Cover and Is It Enough?
As demonstrated above, you only provide for the damages you may cause to third parties and have PIP (only no fault states require it) for yourself and family when you buy such a plan. In simple terms, any damage to your car isn’t included and therefore you will need to pay them out of pocket. You will need to add at least Collision and Comprehensive to have a decent policy.
Furthermore, minimum $20,000/$40,000/$10,000 liability is pretty limited. A highly recommended level of coverage is $100,000/$300,000/$100,000. Providing you can afford the premium you should try to get a full package that comes with decent level of defence against third party claims.