PLPD insurance, short for “Public Liability + Property Damage” insurance, is bare-bones liability insurance that covers bodily injury and property damage you inflict on other people. This is basic insurance that covers you in case you get in an accident and you have to pay for repair costs and injuries that you inflicted on another person. Public Liability & Property Damage insurance is considered a 3rd party insurance. It only applies to the damages and medical expenses of people which you injured. Remember: PLPD insurance does NOT cover your own damages (both medical injuries and car repairs).
PLPD insurance is popular in Michigan, a state which has some of the most comprehensive auto insurance laws in the country. The minimum PLPD coverage requirements imposed by the state of Michigan are $20,000 per person and $20,000 per accident. However, most law professionals in the state of Michigan recommend purchasing liability of at least $250,000 per person and $500,000 per accident. This will secure a person for maximum damages which might face them with in the event of an accident. Michigan residents can sue you for PLPD damages, and you can sue them if they cause you an accident.
How It Works
- 3rd party coverage. PLPD insures other drivers and not you and your property. It covers you for damages you cause to another person (medical payments and car repairs).
- Michigan imposes coverage minimums. Minimal coverage in Michigan is $20,000 per person and $40,000 per accident. Lawyers recommend higher amounts between $250,000 and $500,000 to stay on the safe side.
- Coverage can be increased. PLPD insurers can increase your limits under an umbrella policy.
- Available nationwide. PLPD is available in all states where it’s known as liability insurance. In Michigan, it’s called PLPD insurance. To get maximum protection, full coverage plans provide both liability insurance and collision insurance.
What PLPD Stands For
There are two terms that comprise PLPD Insurance, and those insure 3rd party persons against damage caused by you. The two terms that comprise PLPD are “Personal Liability” and “Property Damage”:
Personal Liability
Personal liability covers 3rd party injuries that you inflicted during a car accident. If a person ends up hospitalized and they require an operation, your insurance will cover the operation costs, hospitalization, drugs, and future rehabilitation costs. Personal liability insurance can be increased for maximum coverage.
Property Damage
Property damage insurance refers to the cost it takes to repair the vehicle. Certain PLPD providers provide coverage of up to 100% of the property damage (total loss) while others might only cover 80-90% of the property damage. Consult with your provider to determine the exact coverage available under your plan.
Is PLPD The Same As Full Coverage Insurance?
No. Full coverage insurance covers 1st person claims too. Full coverage provides coverage for the driver and/or any passengers in the car. Full coverage will secure you for the repairs on your car, any medical expenses and possibly financial distress (if you upgrade the plan) – it will also secure the other person’s expenses. Full coverage plans are referred to as no-fault coverage because they compensate you even if you cause an accident. This type of insurance allows you to file claims with your insurance provider without having to prove that someone else is at fault. Once the damage is done, you’re automatically entitled to a payment regardless of whether you caused the accident or the other person caused the accident. Full coverage combines both aspects of collision insurance (insurance on two cars that impact – aka collusion) and comprehensive insurance (other ways that cause cars damage such as fires, theft, vandalism, etc). Full coverage pays for any damage caused to the car, and you receive compensation even if you caused the accident yourself.
PLPD insurance is mandatory in the state of Michigan and courts will assume both sides have PLPD insurance. If you have a lawsuit that tries to determine who is at fault for an accident and you file a claim against someone that they caused you medical/property damage – you basically sue their PLPD insurer because they’ll be the ones picking up the tab. The reverse can happen if you cause an accident and someone sues you. They’re essentially suing your PLPD provider. If you have full coverage insurance the process is more straight-forward because you can directly claim you were at fault and your insurance company will pay for it. PLPD is available in all states but this term is most commonly used in Michigan. In other states, this type of insurance overlaps with liability insurance. Essentially, if you’re left without PLPD or liability insurance, you could be in serious legal trouble in the event of an accident.
What PLPD Coverage Does Not Include
PLPD covers other people – simple. PLPD in return does not cover you and/or your car. Why should you purchase PLPD then? Because in Michigan it’s mandatory and everyone else has PLPD – in the event someone slams into your car at 200mph, you’ll still be safe. PLPD definitions and terms & conditions differ in each state as insurance providers adjust policies to meet the mandatory state requirements according to state’s individual requirements. PLPD policies are most commonly basic and do not include the full spectrum of coverage that extensive policies such as full coverage auto insurance provide.
Here’s a list of what’s not included in PLPD insurance.
- Collision insurance. Collision insurance covers both cars upon collision on the road. Any damages caused to your car and the other person’s car will be covered under collision insurance. Collision insurance might also cover medical payments and lost wages (depending on the plan). Once you have collision insurance, your car is protected too – not just the other person’s car. However, this only applies for cars that collide on the road. It doesn’t include other damages such as theft, vandalism and weather.
- Comprehensive insurance. Comprehensive refers to all damages that were caused to the car in addition to road accidents. Comprehensive insurance includes hail storms, trees falling on the car, theft, fires, vandalism, floods, etc. In many cases comprehensive also includes impact with animals such as sheep or deer that you might run into on the road.
- Uninsured motorist coverage. Uninsured Motorist (UM) insurance is insurance that protects you from uninsured people. If you get hit by a car and it’s their fault but the person doesn’t have insurance, you won’t have anyone who can cover your damages. This type of insurance protects you if you ever run into an uninsured person.