PLPD insurance in Michigan costs $2,200 to $3,000 or more per year, according to studies. Premiums vary in different parts of the state. Detroit has some of the highest PLPD rates in Michigan, as well as nationally, with premiums averaging more than $5,000 per year. In smaller cities like Ann Arbor, rates average just over $1,000 per year.
“PLPD” is an abbreviation for Personal Liability and Property Damage. Originally, this term referred only to liability insurance. But, because liability is the type of insurance required by most states, PLPD came to be used more broadly as a general term for state required insurance.
Michigan’s insurance requirements are different from most states because it’s a no-fault state. In most states, liability insurance pays the other party’s losses when you are at-fault for an accident. But Michigan requires drivers to cover their own losses, no matter who is at fault. So liability insurance is irrelevant. Michigan drivers must still carry it, however, in case they’re in an out-of-state accident.
For in-state accidents, Michigan requires two other types of car insurance. Michigan’s property protection insurance pays for any damage you do to property other than cars, such as buildings. And its no-fault Personal Injury Protection (PIP) policy pays your medical expenses. Michigan’s unlimited-benefit PIP is the costliest part of the state’s required insurance.
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