If you have never heard of PLPD insurance, you are not alone. PLPD is an acronym for Personal Liability and Property Damage Insurance, an automobile policy designed to ensure you get the damages you deserve.
The term PLPD is most often used in Michigan due to its unique insurance structure, but most of the country may be more familiar with the term liability insurance. Liability insurance is a mandatory coverage in all states and is considered the most basic form of car insurance. While required in each state, the minimum coverage differs among states.
It is possible to purchase personal liability and property damage coverage as two distinct and separate policies, although they are often sold as one solitary policy.
Personal Liability – The Basics
The personal liability part of this automobile insurance coverage is triggered when you are at fault in a car accident that involves injuries to one or more people. Most states refer to this as bodily injury coverage. Personal liability is a type of insurance that covers the other driver’s and their passengers’ injuries. It will also reimburse eligible parties for lost wages and even the cost of rehabilitation for these individuals.
The personal liability portion of the insurance does not cover the insured’s personal property or their medical bills that happen as a result of the same automobile accident. This is covered by another insurance type that is purchased separately.
Personal Liability Insurance Coverage Specifics
The personal liability component of the PLPD policy pays for the medical expenses of the injuries to the driver (and passengers, if applicable) in the other vehicle. More specifically, the personal liability portion covers the following –
Hospital, doctors, rehabilitation, ambulance, and other medical costs are covered under this section of the policy. It also covers ancillary medical expenses for crutches, wheelchairs, and other medical support devices.
Pain and Suffering
A serious accident may result in a lawsuit being filed by the driver or passengers of the other vehicle. This part of the PLPD policy will also pay for the legal fees or judgments resulting from a lawsuit. Often pain and suffering judgments result from this type of lawsuit.
If someone becomes injured due to a car accident and is unable to work, the personal liability coverage is triggered to help cover the other person’s lost wages, but only up to the policy’s coverage limits.
The personal liability auto insurance is written with two primary parameters –
- The first is the maximum amount the policy will pay for each person per accident.
- The second sets the maximum payout per accident.
Here is an example to clarify this important concept –
A typical level for the personal liability section of the PLPD insurance would read as follows – 50/100. This means that the policy will cover each person in the car up to $50,000 maximum, with a $100,000 maximum per accident or event. Essentially, if you hit someone who incurs more than $50,000 in medical expenses, you, as the driver, will be required to pay for any medical expenses that exceed $50,000. This would also be true if the overall medical costs from the accident rise above the maximum limit of $100,000. The expenses that exceed the policy’s limits are your responsibility as the driver.
Coverage limits for personal liability insurance can be dramatically different. And while each state sets forth the minimum amount regarding personal liability insurance each driver must always carry, the minimums can be pretty low, compared to the potential medical expenses generated from a serious auto accident.
Property Damage -– The Basics
The second half of the PLPD policy covers property damage – the costs to reimburse another individual for damaged property caused by an accident that was deemed to be your fault. Property damage insurance generally covers the cost to repair the other person’s vehicle after an accident and may also include –
- Repair costs for the vehicle damage, which include parts and auto body shop labor.
- Damage to other houses, lampposts, fences, or mailboxes, to name a few.
- Lost income due to a business closing due to the accident.
- Attorney and other legal fees – which may depend on your exact coverage and the accident.
Property damage is required in most states just to drive on the road lawfully. However, these state-mandated minimum coverage limits can be low and range from $5,000 to as high as $25,000. This part of the PLPD automobile insurance policy does not cover the damage to the insured’s car, which is covered by a collision policy.
Property Damage Insurance Coverage Specifics
As noted above, the property damage portion of the PLPD policy covers the damage incurred to someone else’s property, which may also include the loss of the property’s use. More often than not, property damage coverage pays for the damage to another person’s automobile but can include damaged property other than the car. Typically, property damage coverage includes –
Repair to Vehicles
Vehicle damage to someone else’s car involved in the accident is covered up to the maximum policy limits. This type of coverage does not pay for your vehicle’s damage, as that falls under collision coverage of the axis bank rtgs form.
Repair to the Garage Door You Damaged
If the accident caused damage to someone else’s garage door or another type of property, the property damage portion of the coverage pays for the repair or replacement of the damaged property. This can be a garage door, but also a mailbox, a streetlight, or even a house. And note that this will also pay the lodging and restaurant expenses if the damage causes a home to be unsafe or uninhabitable. It will not; however, pay for damage to your own garage door or mailbox, etc. The property must be owned by someone else.
Removal of the Knocked Over Tree
If the accident damages landscaping of another property or even knocks down a tree, the cost to remove the tree from the property is covered.
If you face a lawsuit as the result of an automobile accident, the cost of the lawsuit and legal fees for any settlements are covered up to the limits delineated in your policy.
How Much PLPD Should You Carry?
While most states have laws that require drivers to carry a minimum PLPD, these requirements vary from state to state. In addition, these minimum limits are that – MINIMUM and may likely not cover all costs in a serious automobile crash.
Personal Liability And Property Damage Insurance is typically written with a trio of numbers that represent the maximum limits for the policy. For example, a PLPD policy that reads– 25/50/25 would translate to these maximum coverage limits –
- The first two numbers – 25 and 50, reference the maximum amount that the policy will cover – $50,000 maximum per person bodily injury, with a $100,000 maximum per accident bodily injury.
- The third number – 25 references the maximum coverage (i.e., $25,000) for the property damage portion of the PLPD policy.
The differences among states can be quite dramatic. For instance, Michigan and Florida require a minimum of $10,000 of property liability damage per accident, while Mississippi has a minimum property damage liability per accident is $25,000. Alaska has a minimum bodily injury coverage of $50,000, while Pennsylvania only requires bodily injury coverage of $50,000.
Despite the above-noted variances, it is likely that state-required minimums are too low, which can leave the insured unprotected in the event of a severe automobile accident.
When it comes to PLPD auto insurance choosing the right coverage amount is critical to maximizing one’s protection. Drivers who are underinsured will have to pay for those expenses that exceed the PLPD’s maximum limits.
How to Get Affordable PLPD Insurance
PLPD insurance is required in almost every state and is readily available as a basic form of auto insurance. Most insurance companies and agents who handle auto insurance will be able to offer this type of policy. The following provides helpful suggestions to help you get the most affordable premiums for the coverage you seek.
- Shop Around For the Best Deal – This advice is essential for most consumer purchases. Each insurance company uses different metrics and algorithms to rate risk, which may result in wildly different premium quotes. To be safe, try to obtain at least four or five quotes and make sure you compare equal coverages with compatible deductibles.
- Take Advantage of Discounts – Insurance companies are famous for offering a wide variety of discounts. For example, insurers offer discounted premiums when you bundle your insurance needs (i.e., purchase more than one type of policy).
- Proactively Try to Improve Your Credit Score – Most insurers base a portion of their risk analysis on the applicant’s creditworthiness, which is mathematically constructed as a credit score. A solid payment history generates a good score which can help to lower one’s insurance premiums.
What Impacts Auto Insurance Rates?
A study reported by Bankrate reports that the average full-coverage policy has a yearly cost of $1,674 in 2021, although one’s location impacts the exact annual premium. Other pertinent data includes –
- A credit score decrease can potentially increase a premium by more than $1,000 each year, although situation specifics dictate the exact premium.
- A speeding ticket can result in an insurance premium increase of $355 each year.
- A car crash can result in an insurance premium increase of $731 each year.
- A lapse in your insurance coverage can result in a premium increase of $187 each year.
- A DUI conviction can result in an insurance premium increase of $1,662.
- A teenage driver that is added to an automobile insurance policy can result in an insurance premium increase of $1,883.
As the above reveals, avoiding the above events can help to proactively improve your chances of a reduced insurance premium.
Have you have been involved in an accident that was caused by another driver and have sustained injuries? If so, it is smart to consult with an attorney to ensure you get the damages you deserve, even if your damages and expenses exceed the other driver’s Personal Liability and Property Damage policy limits. A licensed attorney and their team of professionals can help sort through the events of the crash and the responsible party’s insurance coverage to determine the best legal solution for your situation.