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.
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.
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.
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 –
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.
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 –
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.
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 –
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.
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.
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.
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 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.
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.
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 –
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.
