PLPD Insurance Coverage Explained

What is PLPD Car Insurance?

Many people have heard the term “PLPD” used to describe a type of insurance coverage, but it seems that few of us actually know what it means. Originally coming from Michigan, PLPD stands for Property Liability and Property Damage. Today, the term PLPD insurance coverage has slowly become more popular in referencing any bare bones car insurance policy that only meets the state’s minimum requirements. The basic idea behind the property liability in PLPD insurance is that you’re covered in the event that your vehicle causes harm or death to a third party. The property damage aspect covers you in the event that your vehicle causes damage to a third party’s property. Property liability and property damage coverage are the minimum requirements to drive in most states, although most people would agree that they are not exactly sufficient for most drivers. The main problem with a PLPD car insurance policy is that it offers no coverage to your own vehicle if it is involved in an accident, just others. That’s just not good enough for most drivers, as there are simply too many variables and random occurrences on the road to risk not having any insurance for your own vehicle. Without sufficient auto insurance, you’re left paying all of your own repair bills if you’re at fault in an accident. Even minor, which is why PLPD insurance should only be used under certain circumstances.

When Should I Consider PLPD?

Although PLPD is generally dirt cheap in terms of auto insurance, it’s not the type of policy that most people should have. In fact, PLPD should really only be used in specific circumstances when it makes sense to have the absolute minimum coverage. Here’s a look at some situations where PLPD car insurance might be right for you:

• PLPD insurance might be all you really need if you are only temporarily driving an old or damaged vehicle. Your vehicle is not covered under PLPD and it may not even be necessary if you plan on getting rid of it soon.
• Is your wallet coming up empty? One of the main reasons people take out PLPD auto insurance is because they simply cannot afford a higher level of coverage. If that’s the case, don’t hesitate to use PLPD. Just remember, this type of coverage is probably not sufficient in the long run and you’ll want a higher level of insurance eventually.
• Do you rarely use your vehicle? If you’re only putting a couple hundred miles on your car every month, you probably don’t need the most substantial insurance policy. Save some money and go with PLPD coverage.