Plpd Auto Insurance: What Does It Cover?

PLPD stands for personal liability and property damage insurance. It is a type of auto insurance that covers the policyholder's liability in the event of an accident. This includes medical bills and lost wages for the other driver and their passengers, as well as damage to their vehicle and other property. PLPD insurance is required by law in most states and is mandatory for all drivers in the United States. While it covers the costs of damaging another person's property, it does not cover the costs of damage to the policyholder's own property.

What does PLPD cover if you're at fault?

If you are at fault in an accident, PLPD insurance will cover the other driver's vehicle damage and medical bills. This includes medical costs such as hospital, ambulance, and other necessary medical equipment, as well as lost wages for injured people unable to work during recovery.

The personal liability component of PLPD covers the medical expenses of the other driver and their passengers, as well as their lost wages due to injury. It is usually called "bodily injury" coverage. The property damage component covers the cost of repairing or replacing the other person's vehicle, as well as any damage to structures such as fences, mailboxes, landscaping, and houses.

It is important to note that PLPD insurance does not cover your own vehicle damage or medical bills. It also does not include collision coverage or comprehensive coverage, which would cover damage to your vehicle in an accident or from other causes such as fire, theft, or vandalism.

The specific coverage provided by PLPD insurance can vary by state, and it is important to review the details of your policy to understand what is covered in your particular case.

What does PLPD not cover?

PLPD insurance, or personal liability and property damage insurance, does not cover damage to your own property. This means that if you are at fault in an accident, you will not be reimbursed for damage to your own vehicle or property.

PLPD also does not cover your own medical bills or lost wages if you are injured in an accident. This means that if you are at fault in an accident and are injured, you will have to pay for your own medical treatment and any lost income during your recovery.

Additionally, PLPD insurance does not include collision and comprehensive coverage. Collision coverage pays for repairs to your vehicle if it is damaged in an accident, while comprehensive coverage pays for repairs for damage caused by something other than a collision, such as fire, theft, or vandalism.

In Michigan, PLPD insurance also does not include uninsured/underinsured motorist coverage, which protects you if you are in an accident with a driver who does not have insurance or adequate liability coverage.

What is the average cost of PLPD insurance?

The average cost of PLPD insurance varies depending on various factors, including the state of residence, vehicle type, and individual driver characteristics.

According to the National Association of Insurance Commissioners (NAIC), the average U.S. premium cost for PLPD insurance was $611.12 in 2017. However, costs can differ significantly from state to state. For instance, Louisiana residents paid an average of $936.94 for PLPD insurance in 2017, while North Dakota residents paid only $303.66 on average.

In 2024, the average cost of PLPD insurance is approximately $46 per month, or $552 per year. However, this figure can vary based on individual circumstances. For example, drivers with poor credit may pay significantly more for PLPD insurance, with a national average of $1,223 for state minimum liability coverage.

It's important to note that PLPD insurance rates can fluctuate over time, and costs may have changed since 2024. Additionally, specific insurance companies may offer more competitive rates than others, so it's advisable to shop around and compare quotes from multiple providers to find the best deal.

What is the difference between PLPD and full-coverage insurance?

PLPD insurance stands for Personal Liability and Property Damage insurance. It is a common term, but its meaning differs in each US state. The basic definition is that PLPD insurance covers the minimum types of coverage required by state law. Motor vehicles on the roads are required by law to carry PLPD insurance in almost every state.

PLPD insurance does not reimburse you for damage to your own property. Instead, it covers the other driver's medical treatment and property damage when you are at fault in an accident.

Personal Liability insurance covers another party's injuries if you cause a car accident. Property Damage insurance covers the damage you cause to another vehicle or personal property in an accident.

Full-coverage insurance includes everything that PLPD covers, plus protection for damage to your vehicle. It also ensures you receive all the pain and suffering compensation you are entitled to if an uninsured or underinsured driver injures you.

Full-coverage insurance also includes:

• Collision coverage, which fixes your vehicle if you are in an accident that is your fault.
• Comprehensive coverage, which includes losses other than collision, such as fire, theft, glass, vandalism, and hitting an animal.
• Limited property damage coverage, which helps you pay what you may owe in a mini tort claim if you caused an accident that resulted in vehicle damage to a vehicle owned by someone else.

The portion of full-coverage insurance that extends beyond PLPD is optional coverage, meaning you have the option to purchase or not purchase. Only PLPD is required by law – it is the minimum amount of insurance coverage that the law requires drivers to purchase and maintain for their vehicles.

When should you switch to PLPD?

PLPD insurance stands for Personal Liability and Property Damage insurance. It covers the damage and injuries in an accident when you are found at fault. It is a common term, but its meaning varies in each state. PLPD is mandatory in almost every state, so drivers must carry some form of PLPD auto insurance to avoid legal consequences.

Switching to PLPD insurance is a good option when you want to save money on your insurance premiums. PLPD insurance is significantly cheaper than full coverage insurance, and it might be a good choice if you are looking for ways to reduce your expenses. By dropping comprehensive and collision coverage, you can save an average of $480 a year. This type of insurance makes sense if you have an older vehicle with a low market value, as the cost of repairs or replacement is relatively low. If you have a new or expensive vehicle, or if you have significant assets, it is recommended to continue with full coverage.

Another factor to consider when deciding to switch to PLPD is the value of your vehicle. If your car is paid off and has a low market value, you may not need comprehensive and collision coverage. In this case, switching to PLPD can be a cost-effective option. However, it is important to note that PLPD does not cover damage to your own vehicle, so you must be prepared to cover the cost of repairs or replacement if your car is totaled in an accident.

Additionally, if you are a safe driver with a clean driving record, switching to PLPD can be a good option. A clean driving record can help you save on insurance premiums, and the reduced risk of accidents may make it more feasible to opt for the lower coverage offered by PLPD.

It is also worth considering switching to PLPD if you drive infrequently or have multiple vehicles. If you don't drive your car often, the risk of accidents is lower, making PLPD a more attractive option. Additionally, if you have multiple vehicles, you may choose to insure one car with PLPD to save money while maintaining full coverage on your primary vehicle.

Before making the switch, it is essential to consult with your insurance agent to determine if PLPD offers enough coverage for your specific situation. While it can help reduce costs, PLPD may not provide sufficient protection in the event of a serious accident. It is crucial to understand the limitations of PLPD and ensure that you have enough financial resources to cover any potential expenses not included in the coverage.

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