PLPD insurance stands for Public Liability and Property Damage Insurance and it is essentially the same type of insurance more popularly known as bodily injury liability and property damage liability coverage. The acronym, PLPD, is commonly used by people who live in Michigan because it started out as a description for the type of car insurance sold in this state before it became no-fault.
People from Michigan who use this term currently are referring to an auto insurance policy that only contains its state’s minimum requirements. The use of the term PLPD has expanded around the country, and now it has become an acronym said by more than just Michiganders. When people in other states say PLPD, they are referring to their state’s minimum requirements for liability insurance coverage.
PLPD is not just an old term that describes a new type of insurance; some states still sell this type of coverage. One example is the state of Washington which requires that its drivers purchase PLPD insurance if they are using their vehicles to transport household goods along the roads.
All states require that their drivers purchase bodily injury liability insurance. Bodily injury liability covers the medical expenses of people injured in a car collision that the policyholder causes. If anyone passes away in the car collision, this insurance pays funeral expenses and any hospital bills for these third parties.
The other part of liability coverage is property damage liability insurance. Property damage liability will pay the bills to repair or replace property damaged in a car collision that the policyholder has caused. Any property damaged in the accident will qualify including the third party’s vehicle. If the policyholder runs into a building or a house, property damage liability coverage pays to repair it. The policyholder also may run into city possessions such as a light pole; property damage
liability also covers these repairs.
Anyone giving drivers the best advice would suggest that they not purchase PLPD insurance only. This type of insurance, as stated above, only covers third party expenses. The people who cause the car collision will also sustain damages to their own vehicles which will need to be repaired; the repairs may even turn out to be too expensive to be worth it. Because the liability policy will not pay to replace the at-fault driver’s vehicle, these policyholders will be left without a car.
In the event that the at-fault drivers are so injured in the accident that they can’t work and require extensive medical care for a given period of time, they will not be able to take advantage of their bodily injury liability coverage to pay for it. Because of these reasons, only a limited number of people need to consider purchasing PLPD insurance.
People who are driving an old car that will be replaced in the near future can consider purchasing PLPD insurance only, because the value on these vehicles is very low and these drivers will not have these vehicles for very long. People who really need to own a vehicle but truly cannot afford to purchase more than the mandatory minimums may purchase just the PLPD insurance policy. But it’s advisable that as soon as they can afford to purchase insurance coverage for their own vehicles, it would be highly advantageous for them to do so. Some people rarely drive their automobiles. If that is the case, PLPD insurance should be enough to cover them.
PLPD insurance is not recommended for most people. The insurance will save them from being involved in lawsuits in the event that they seriously injure somebody while driving, but it will not put them back on the roads again if they don’t purchase optional coverage.