ByBasic but essential insurance is PLPD insurance, or Personal Liability and Property Damage. It includes bodily injury liability insurance and property damage liability insurance. Many people say that PLPD insurance is akin to full coverage auto insurance, which covers various situations, such as when your car is damaged in an accident. However, the cost of personal liability insurance is lower than that of full coverage insurance. Thus, if you do not want to spend a lot of money on your car insurance, or if you have an older car, PLPD insurance is a good option for you.
Many states require PLPD car insurance as minimum coverage to legally drive on public roads. Let’s thoroughly analyze everything related to PLPD insurance.
What Exactly is PLPD Insurance?
PLPD insurance is nothing more than personal liability and property damage car insurance. It is designed to protect other people from your actions behind the wheel (bodily injuries), in addition to covering the damage to other people’s property. So, we can say that it is auto insurance coverage for third parties, not for oneself. Pedestrians, other drivers, and passengers are the primary beneficiaries of this car insurance.
If you have an accident while driving, and you get injured, or your car was damaged, PLPD insurance will not cover the damages at all. This insurance is also known as public liability and property damage insurance.
Personal Liability (PL)
If you cause an accident, legally, you must pay the medical bills of the people you hurt or the property you damaged. That is precisely personal liability or public liability. That’s the reason for car insurance. As mentioned before, if you are the cause of a car accident, the other driver and passengers could receive a considerable amount of money that can amount to thousands of dollars in medical bills. Your insurance policy will cover these damages according to the agreed limits, thus avoiding out-of-pocket expenses.
What to Claim on Your Personal Liability Insurance Policies When Having an Accident?
- The medical bills of any person who has been injured by your fault in a car accident (pedestrian, other drivers, passengers, etc.)
- Pain and Suffering damages
- Lost wages
- Any other personal damages
Explaining Personal Liability Figures
Two figures represent personal liability coverage. For example, a personal liability insurance policy sold with 50,000 / 100,000 means that your car insurance company will pay a maximum amount of $50,000 per person for medical bills or other expenses. However, when the damages caused to anybody exceed $50,000 in medical expenses and others, that person can sue you for all the damages received in the accident.
The second figure shows the maximum coverage of personal liability for the accident. In this case (50,000/100,000 personal liability coverage policy), your insurance company will pay medical bills or other expenses for an accident up to a maximum amount of $100,000.
Property Damage (PD)
Property damage insurance coverage is the second part of PLPD insurance. If you damage other people’s properties in an at-fault accident, you are required to pay for the repairs of these damages. Fortunately, all or part of this amount will be covered by your property damage (PD) “component” of your liability insurance policy. For more on how to manage costs in these situations, consider checking cheap car insurance with low payment options.
This component will also cover any other property damages that you caused in an at-fault accident. For example, your property damage insurance would cover the costs of repairs if you hit the front door of a house or even the mailbox. The property damage coverage is expressed in a single number, unlike personal liability coverage, which is expressed in two numbers (per person and per accident). In a standard auto insurance policy, it is the third figure: 50,000/100,000/300,000.
PLPD Insurance vs. Full Coverage Insurance
In no state is it mandatory to buy full coverage insurance; however, in most states, PLPD insurance is required. These two policies cover two different things: In a fault accident, PLPD insurance covers pain and suffering, medical bills, and any other expenses caused by the collision. On the other hand, full coverage insurance encloses almost everything, including PLPD insurance, collision, and comprehensive coverage. Collision coverage helps pay for the repair or replacement of your car after a collision with another vehicle or object. Comprehensive coverage protects you against natural events, and almost any damage unrelated to car accidents. When buying a new car, it is very advisable to get full coverage to protect the investment you made. Alternatively, cheap PLPD insurance is advisable when you have a limited budget for auto insurance or if you drive an old car.
