What is PLPD?
<lingo>Personal liability and property damage (PLPD) coverage, also commonly referred to as state-minimum coverage, is a type of auto insurance policy that includes only the minimum amount of coverage required by law. Since each state sets forth their own auto insurance requirements, specific characteristics of a PLPD policy can vary from one state to the next. Carrying PLPD insurance is typically the least expensive way to keep a vehicle "street legal" in terms of coverage, though it may not provide adequate coverage for all types of accidents or other incidents.</lingo>
PLPD Clearly and Briefly Explained
There are generally two specific types of coverage included in a PLPD policy: liability coverage and property damage coverage. Liability coverage is designed to pay for costs related to another person's injuries or death in the event of an at-fault accident. This coverage doesn't apply to the driver, but to other parties involved.
Property damage coverage, on the other hand, is meant to pay for expenses related to damaging another person's property during an auto accident. If you rear-end somebody, for example, your property damage coverage should kick in and pay for the damage to the other person's vehicle.
<twitter>In Michigan, drivers are required to carry a liability coverage minimum of $20,000 per person and $40,000 per accident</twitter>
Coverage amounts for PLPD can vary greatly based on state minimum requirements. In Michigan, for example, drivers are required to carry a liability coverage minimum of $20,000 per person and $40,000 per accident, along with property damage coverage of $10,000.
While PLPD tends to be the least expensive option when it comes to auto insurance, it's not for everyone. If you have a vehicle that's still being financed (either through a lease or monthly car loan payments), your lender will most likely require additional insurance coverage beyond PLPD amounts. This will probably include higher liability and property damage protection amounts, along with comprehensive and collision coverage.
Even if you own your vehicle outright, it may be wise to carry more than your state's minimum PLPD insurance. The additional protection can give you added peace of mind and save you from headaches down the road if you're involved in an accident.