Even though Ohio only requires 25/50/25 in liability insurance, drivers should consider buying more coverage if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference. And no matter what, you should be sure to fulfill the minimum Ohio car insurance requirements to avoid facing consequences for driving without insurance.
Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder’s own injuries or property. For instance, collision insurance covers damage to the policyholder’s car regardless of fault. And comprehensive insurance pays if the policyholder’s vehicle is damaged by something besides an accident, like a natural disaster or vandalism.
PLPD is shorthand for Personal Liability and Property Damage insurance. PLPD insurance covers injuries and property damage for the other driver if you are found to be at fault in a car accident but it does not reimburse you for your own medical expenses or damage to your own property, however.… read full answer
The term PLPD is most commonly used in Michigan; it is known as “basic liability” in the rest of the nation. Because PLPD auto insurance is mandatory in almost every state, it is the most basic form of car insurance.
How PLPD Insurance Works
PLPD insurance is divided into two groups: personal liability (PL) and property damage (PD).
How Personal Liability Insurance Works
Personal liability insurance covers medical costs for the victim of an accident. If you are the victim of a crash, the other driver’s PLPD will cover your costs. If the other driver is the victim, your PLPD will cover theirs.
Also called “bodily injury” coverage, personal liability insurance is often referred to in a split numeric form—$15,000/$25,000, for example. The first number to appear—in this case, $15,000—is the most an insurance policy will pay per person for injury care after an accident. The second number ($25,000 here) refers to the maximum payout per separate accident. The minimum amount of personal liability insurance a motorist must purchase varies by state.
How Property Damage Insurance Works
Property damage insurance covers the physical damage to other objects caused by your vehicle. The PD portion of PLPD can cover damage to another car, as well as government or personal property. That can include street lamps, landscaping, lawn furniture, or signage.
Property damage insurance is usually listed after the two maximum payouts for personal liability. So, for example, if a policy offers $15,000/$25,000/$20,000, the PD coverage is a maximum of $20,000.
Does PLPD Insurance Cover Theft?
PLPD insurance does not cover theft, as this is considered damage that affects you, not another driver or owner of property you might have damaged with your vehicle. Instead, theft falls under what’s known as comprehensive insurance, which addresses any repairs to your car which might take place outside of a collision. That includes hail damage, falling trees, vandalism, and theft. However, even comprehensive insurance will not cover the items stored in your car when it was stolen.
While PLPD does not cover theft, it does provide coverage in the event of an accident. As a result. if you are involved in an accident, and especially if the accident is your fault, the premiums for your PLPD insurance will likely rise. That means it’s more important than ever to comparison shop for the best rates. Know what’s required in your state, and compare quotes from several insurance companies.
You need enough liability insurance to cover the full value of your assets. Your bodily injury liability coverage should be as much as your net worth, while your property damage liability insurance can be slightly lower since property damage claims are usually less expensive. Purchasing enough liability insurance to cover the value of your assets protects you from financial ruin if you cause a serious car accident.… read full answer
When to Carry Only the Minimum Liability Coverage
Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth.
If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.
Liability Limits on Auto Insurance
Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.
For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.
Why You Need More Liability Insurance Than the State Minimum
Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.
No, personal injury protection (PIP) is not required in Ohio. PIP is not even available in Ohio. Instead of PIP insurance, Ohio insurance companies offer medical payments insurance (sometimes called MedPay), which helps with hospital bills resulting from a car accident.
MedPay is similar to PIP insurance in that both handle your medical bills even if you cause a car accident. But MedPay covers less than personal injury protection, with no provisions for lost wages or assistance with home tasks that you can’t manage due to injury.… read full answer
Personal injury protection is a type of car insurance used in no-fault states, since it covers medical payments regardless of who caused an accident. Ohio is an at-fault state, which means at least one driver is found to be “at fault” after a collision. Due in part to the differences in car insurance laws, the average cost of insurance in Ohio – $824 – is relatively low compared to most PIP states and other non-PIP states.
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