Public liability and property damage auto insurance provides car owners and drivers with the minimum liability insurance coverage required by law in some states. Although the actual coverage depends in part on the state in which the policy is issued, PLPD insurance is similar to the coverage offered by bodily injury liability and property damage liability coverage options. PLPD insurance policies are not sold in all states, but in the states where they are marketed, they might be required by any driver or owner of a car that's used to transport household goods.
Required by all states, public liability, or bodily injury, liability coverage manages the risk of causing bodily injury to a person while driving a car. Unless the driver acquires the bodily injury liability coverage, the driver of the car is responsible for the medical expenses that result from the injury, as well as funeral expenses in the event the victim dies due to the injuries sustained in the accident. In turn, the property damage liability coverage addresses the risk of causing property damage while driving a car. Without the property damage coverage, a driver is responsible for the repair or replacement of property damage done to the insured driver of a car, whether that property is another car, house or other private or public property.
Benefits of PLPD Insurance
For drivers and owners of early-model cars with very low market values, public liability and property damage auto insurance meets state insurance coverage requirements and may make sense due to the minimal financial loss the owners incur if the cars are totaled in accidents. PLPD insurance also offers the minimum required coverage for those who own a car, but can’t afford to purchase insurance that also covers the risk of damage to their own cars or personal injury in the event of an accident. According to Autos.com, premium rates for PLPD insurance might be up to 80 percent cheaper than full coverage rates, and the minimum coverage period may be less than that of a comprehensive collision policy.
Disadvantages of PLPD Insurance
Public liability and property damage auto insurance manages the risk of injuring a third party or damaging their property. Consequently, a PLPD policy does not address the possible damage to a policyholder’s car or their physical injuries that result from an accident. Drivers of late model cars with high market value will find the cost of additional coverage of collision and comprehensive coverage less expensive than the replacement of their cars should the cars be totaled in an accident. The cost of the additional coverage will also be less expensive than the cost of medical care should a policyholder be seriously injured in an accident. For financed cars, the lien holder may require that you obtain collision and comprehensive coverage.
PLPD Insurance Quotes
You can contact an insurance company or agent in person or by phone to get a PLPD insurance quote. You can also prepare your own quote using an insurance rate calculator that’s available on some insurance company and insurance broker websites. Using a broker site, you can obtain multiple quotes for particular types of coverage from different insurance companies simultaneously. When considering the cost of the insurance, you should also consider the out-to-pocket costs should an accident occur, in which you suffer major injuries, and your car is destroyed.
- MichiganAutoLaw: What Is PLPD?
- Free Insurance Quotes.org: What Is PLPD Insurance?
- National Association of Insurance Commissioners. "Consumer Alert: 9 Common Myths About Insurance." Accessed July 24, 2020.
- National Association of Insurance Commissioners. "A Consumer's Guide to Auto Insurance," Pages 1-2. Accessed July 24, 2020.
- National Association of Insurance Commissioners. "Overview: Auto Insurance: Liability." Accessed July 24, 2020.
- National Association of Insurance Commissioners. "Overview: Auto Insurance: Property Damage." Accessed July 24, 2020.
- Michigan.gov. "Michigan's New Auto Insurance Law Goes Into Effect; Consumers Encouraged to Shop Around." Accessed July 24, 2020.
- Michigan.gov. "Frequently Asked Questions: Information on Purchasing Auto Insurance: What Auto Insurance Do I Have to Purchase?" Accessed July 24, 2020.
Billie Nordmeyer works as a consultant advising small businesses and Fortune 500 companies on performance improvement initiatives, as well as SAP software selection and implementation. During her career, she has published business and technology-based articles and texts. Nordmeyer holds a Bachelor of Science in accounting, a Master of Arts in international management and a Master of Business Administration in finance.