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. 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).
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.
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.
PLPD Insurance and 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.
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