What is PLPD Insurance?

You may have heard of the term liability insurance, or property damage liability insurance, well PLPD Insurance is basically the same thing. The reason you may not be entirely familiar with this abbreviation is cause it’s mainly common in Michigan.

PLPD stands for Personal Liability, and Property Damage. So, PLPD Insurance is basically liability, property damage, or body injury liability insurance.

The unique thing about PLPD Insurance, or in other words liability insurance, is, it specifically covers the other driver’s vehicle damage, and medical expenses, when you’re at fault of the accident. It won’t cover your vehicle damage or medical bills.

What is the Main Advantage of PLPD Insurance?

The main advantage of getting PLPD Insurance is it safeguards you from incurring a massive financial loss in the event of an at-fault car accident, especially if the victim sues you for any vehicle damage, or bodily injury.  

In many serious cases it may cost you $100,000 to $1,000,000, or more! So, experts suggest getting a PLPD Insurance coverage of $100,000, $300,000, or up to $1 million. Just to stay on the safe side.

Well, now you may be wondering whether you need such a high PLPD Insurance coverage, and whether PLPD insurance is necessary.

To clear all your questions and doubts, this article covers discussions on the purpose of getting PLPD Insurance, what does PLPD insurance cover, limitations of PLPD insurance, reasons why it may be necessary for you to get one, how much does PLPD cost in Michigan, how much PLPD insurance coverage do you need, and how to get a PLPD insurance.

What is the Purpose of Getting PLPD Insurance?

Running into a car accident, or accidentally hurting another person is something that we never want to come across. Although it’s inevitable that you would do everything to evade an accident, it’s not possible to guarantee that someone else won’t become a victim of your mistake.

You don’t want a bad day to turn into a recurring nightmare, especially as there is a substantial chance of getting heavily sued. On the other hand, even from an ethical standpoint, it is your responsibility to compensate for any damage that you may have caused another person.

You may have a justification that it was an accident, but the one who got harmed for it will have to go through a lot of hassle. Especially going through a lot of formalities and official procedures to claim their own personal insurance, or to bear any additional costs from their own pockets.

The minimum settlement cost usually varies across different states, but on average it is:  

• $25,000 bodily injury per person 
• $50,000 bodily injury per accident
• $25,000 property damage per accident 

The potential repercussion of such accidents can be financially overwhelming, especially with lawsuits that can cost you hundreds of thousands, or even millions of dollars, depending on the severity of the accident.

So, to protect yourself from a heavy fine and bear the moral obligation to compensate the ones affected by the accident, it is crucial to get PLPD insurance.

Remember even the most cautious drivers run into accidents and end up hurting someone. PLPD insurance acts as a financial safety net by covering these costs, protecting you from potential financial ruin and allowing you to focus on moving forward.

What does PLPD Insurance Cover? 

PLPD Insurance covers vehicle damage, property damage, and medical expenses for the other driver and any of their passengers injured in the accident in which you’re at fault.

For example, if you run into a car accident, and the vehicle that you’ve hit has been damaged, and the people in that vehicle have been hurt and require medical attention.

Your PLPD insurance will compensate the other driver for the vehicle/property damage, and it will also compensate their medical expenses.

What PLPD Insurance Does Not Cover? 

The biggest limitation of PLPD Insurance is it does cover any vehicle damage, or medical expenses for you, or your passengers.

PLPD Insurance was specifically designed to cover the expenses of the other driver and their passengers. Its main purpose is to ensure that someone else does not become a victim of your mistake. And, to effectively compensate in an accident where you’re at fault.

Which States Cover the PLPD Insurance? 

Apart from New Hampshire, and Virginia, all US States cover the PLPD Insurance, or more commonly known as the liability insurance.

In fact, these are the only two states that don't require car insurance. But that doesn’t mean that you can’t get one, it’s typically up to you to decide whether you want to get car insurance or not.

Here’s one that you should keep in mind, New Hampshire, and Virginia are at-fault states, which means that you’ll be liable for any property damage or bodily injuries for an accident where you’re at fault.

So, if you don’t have PLPD insurance then you may have to bear a heavy financial cost depending on the severity of the accident, and the overall damage that you’ve caused the other driver, and their passengers.

Why is it Necessary for Everyone at At-Fault States to Get a PLPD Insurance?

Regardless of your driving habits, and no matter how cautious you are, you never know when, and how you might run into an accident. If it’s proven that the accident is your fault, then you’re liable to compensate the third parties affected by the accident.

Only 12 States in the US are No-Fault States which includes, 

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah

The remaining 38 States in the US are At-Fault States, so if you’re at fault in an accident then you’re legally liable to compensate them. Therefore, it is crucial for you to have PLPD insurance to safeguard yourself from lawsuits, and the hefty financial burden that may come with it.

In No-Fault States, you need to get a PIP (Personal Injury Protection). PIP insurance typically covers any property, vehicle, and medical costs for the insurance policy holder.

To be more precise, PIP insurance will cover your property damage, and medical expenses, unlike PLPD insurance, it does not cover property damage or insurance to other drivers.

In a nutshell, the key difference is, in an at-fault state, it is your legal responsibility to compensate the other driver. In no-fault states, the insurance compensation comes from individual insurance.

Let’s say you’re the victim in this car accident, and the other driver is at fault here. So, in a no-fault state, you’ll have to seek insurance from your own insurance provider regardless of whoever is at fault here.

At the same time, in an at-fault state, the driver who is at fault here for the accident will have to bear the costs from their insurance, or from their own pocket.

So, having PLPD insurance at-fault is very necessary. Although it is an option in no-fault states, it provides you with additional financial safety especially when it comes to possible consequences of a lawsuit.

How much does PLPD Insurance Cost in Michigan? 

As of August 2024, the PLPD Insurance premium cost varies from a minimum of $1880 to $2190 on average depending on how much insurance coverage you’re seeking. Compared to Michigan, the national minimum PLPD insurance premium is $1670 for full coverage.

While the average cost can range from $1880 to $2190, it's essential to remember that this is just a starting point.

The coverage amount varies based on multiple factors, which include age, gender, driving records, and whether you bought the car on credit, and if how much insurance coverage are they mandating you to have.

Your insurance provider will evaluate and determine the coverage that you will get from your PLPD insurance. If you’re an average adult between the age of 20 to 40, then you will most likely get a high coverage at a lower annual premium. This is especially because you’re less prone to having an accident.

Typically, teenagers and old people are the ones that are charged higher premiums, and if they have a bad driving record that adds to increased annual premiums.

According to the State Law in Michigan you’re required to have a minimum coverage of $20,000 for bodily injury to one person, $40,000 for bodily injury to two or more people, and $10,000 for property damage in one accident.

Although to ensure financial safety, it is highly recommended to have PLPD Insurance coverage of $500,000 per person and $1,000,000 per accident.

You should consult with a Insurance Agency in Michigan to know exactly how much insurance premium you’ll have to pay annually to get your desired insurance coverage.  

How Much PLPD Insurance Coverage Do You Actually Need? 

The average PLPD Insurance coverage varies in different states depending on the coverage amount mandated by federal laws.  

According to recent studies published in Forbes the following data represents the Minimum Car Insurance Requirements by the State. 

Alamba

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident 

Alaska 

Liability insurance 

• $50,000 bodily injury per person
• $100,000 bodily injury per accident
• $25,000 property damage per accident 

Arizona

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident 

Arkansas 

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident 

California 

Liability insurance 

• $15,000 bodily injury per person
• $30,000 bodily injury per accident
• $5,000 property damage per accident 

Colorado 

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident 

Connecticut 

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident 

Additional requirements 

• $25,000 uninsured/underinsured motorist bodily injury per person
• $50,000 uninsured/underinsured motorist bodily injury per accident 

Delaware 

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $10,000 property damage per accident 

Additional requirements 

• $15,000 personal injury per person 
• $30,000 personal injury per accident 

New York 

Liability insurance 

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $10,000 property damage per accident 

Additional requirements 

• $25,000 uninsured/underinsured motorist bodily injury per person
• $50,000 uninsured/underinsured motorist bodily injury per accident
• $50,000 personal injury protection 

Michigan 

Liability insurance 

• $50,000 bodily injury per person
• $100,000 bodily injury per accident
• $10,000 property damage per accident 

Additional requirements 

• $250,000 personal injury protection 
• $1,000,000 personal property insurance 

The minimum insurance coverage varies in similar figures across different states in the US. So, if you’re considering getting a PLPD, or a liability insurance, you should definitely consult with an PLPD Insurance provider to ensure that getting the minimum coverage, or a higher one depending on age, driving records, financial income, credit score and multiple other factors.

How to Get PLPD Insurance?  

To get PLPD Insurance you will have to contact a PLPD Insurance provider. Based on your legal track records, driving records, age, gender, income, credit history, amount of insurance claimed, and compensated in the last 3 years, along with multiple other factors.  

So, based on the consultation with your PLPD insurance provider you will get a quote on how much insurance premium you will provide, and how much coverage you will get. 

Why Should You Get PLPD Insurance? 

Let's face the truth, many of us believe nothing bad will happen on the road if I maintain caution and drive safely. Well, that’s partly true, unfortunately there are times when reality is often cruel.

According to the US National Highway Traffic Safety Administration, there have been 8650 deaths in the first quarter of 2024. Based on other reports in 2022, there have been 42,515 fatal car accidents. It was also found that 1,664,598 crashes resulted in injuries and 4,226,677 caused property damage.

Even though car accidents are so frequent in the US, about 29 million drivers are still uninsured in the USA, which is 14% of all drivers in the country. With so many frequent car accidents happening every now, and then, it is high time for every vehicle owner to have PLPD insurance.

The common reasons for road accidents include,  

• Drunk driving
• Getting distracted
• Lack of seatbelt use
• Speeding
• Lack of attention on the road 

It is our responsibility as law-abiding citizens to maintain traffic rules and drive carefully. Yet again, it is also necessary to create a financial safety net in the event of an at-fault accident.

This will help you safeguard, and secure yourself from any legal penalty, and it will also help you become morally responsible for any at-fault accident. So, that’s why it is essential for you to get a PLPD insurance policy by assuring that you get the best coverage plan within your budget.  
 
Remember, investing in PLPD insurance is an investment in your peace of mind. 

Bottomline: PLPD Insurance is Your Financial Safety Net 

PLPD Insurance will provide you with the minimum coverage that your state requires. But it is always better to get higher insurance coverage to ensure more extensive financial safety.

This is something that your PLPD insurance provider can help you determine as there are multiple factors to consider here.

Nonetheless, PLPD by default is a great financial safety net as it can help you protect yourself from financial burdens in the event of a car accident in which you are at fault.

FAQ 

What does PLPD stand for? 

PLPD stands for Personal Liability and Property Damage.  

What is PLPD Insurance?  

PLPD Insurance, which is also known as liability insurance. It is an insurance settlement that’s paid to compensate the other driver for property, and vehicle damage, along with bodily injuries when you’re at fault for an auto accident.  

What does PLPD cover?  

PLPD covers property damage, vehicle damage, and medical bills of the other driver along with the passengers of that vehicle. It does not cover your own vehicle damage or medical bills.  

What is PLPD Insurance in Michigan?  

Michigan is the only state that uses the term Personal Liability and Property Damage, abbreviated as PLPD. In other states, the same insurance scheme is known as liability insurance, property damage insurance, and bodily damage insurance.  

How do I get PLPD Insurance?  

To get PLPD Insurance you will have to find a reliable PLPD Insurance provider.