What Is PLPD Insurance?
Find Cheap Auto Insurance Quotes in Your Area
PLPD stands for personal liability and property damage insurance. It is usually called liability insurance and is an extremely common form of automobile insurance.
PLPD insurance does not reimburse you for damage to your own property. Instead, PLPD coverage pays for the other driver's medical treatment and property damage when you cause an accident.
Liability insurance is sold as a single item or two separate policies. The term "PLPD" is most commonly used in Michigan, but PLPD insurance is available nationwide. It's also mandatory in almost every state, so if you don't have PLPD/liability coverage, you could be in legal jeopardy.
What is personal liability insurance?
Personal liability (PL) insurance, one part of PLPD, goes into effect when you're at fault for an accident. It covers the medical bills of the other driver and their passengers, as well as their lost wages due to injury. It's usually called "bodily injury" coverage.
Generally, there are two parts to the personal liability insurance coverage limit: the maximum amount covered per person and the maximum per accident. They're often written together. For example, "$25,000 and $50,000 minimum limits" is shortened to "25/50." PLPD coverage as a whole is often written using three numbers, and the first and second numbers are PL coverage: 25/50/20.
Let's look at two examples where you have 25/50 personal liability coverage and cause an accident:
- If one person in the other car is injured, and medical costs total $26,000, your liability insurance would cover the first $25,000, but you would be responsible for the other $1,000.
- If three people in the other car are injured, and each has $20,000 in medical bills ($60,000 total), two would be completely covered by your liability insurance. But you would have to pay the last $10,000 of the third person's care.
These simplified examples assume no one involved has personal injury protection or medical payments coverage.
Every state that requires PLPD/liability insurance has a minimum required amount of personal liability to drive your car. However, you may choose to increase these limits to avoid owing money after an accident. The most common minimums are $25,000 and $50,000, but the exact amount varies by state.
See your state's personal liability insurance requirements.
What is property damage insurance?
Property damage (PD) insurance covers damage to another party's property when you're at fault for an accident. This includes damage to another vehicle or other property, such as a fence or the structure of a home.
The total amount of property damage liability coverage you're protected for is represented by a single number. It's often divided by 1,000, so $20,000 might be referred to as 20. PLPD insurance coverage as a whole is often expressed using three numbers, with the third number being PD coverage: 25/50/20.
As with personal liability coverage, you're required to have property damage coverage to drive your car in almost every state. The minimum required amounts range from $5,000 to $25,000, but you can choose to add more coverage to further protect yourself.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.