Basic but essential insurance is PLPD insurance or Personal Liability Insurance and Property Damage. It includes bodily injury liability insurance and property damage liability insurance.
Many people say that PLPD insurance is like full-coverage auto insurance. Full coverage covers several situations, such as when your car is damaged in an accident. However, personal liability insurance costs are lower than full coverage insurance costs. Then, if you don’t want to spend a lot of money on your car insurance or if you have an old car, PLPD insurance is a good option for you.
Many states require PLPD car insurance as minimum coverage to legally drive on public roads. But let’s thoroughly analyze everything related to PLPD insurance.
What Exactly is PLPD insurance?
PLPD insurance is more than personal liability and property damage car insurance. It is designed to protect other people from your actions behind the wheel (bodily injuries) and cover the damage to other people’s property. So, we can say that it is auto insurance coverage for third parties, not oneself. Pedestrians, other drivers, and passengers are the primary beneficiaries of this car insurance.
If you have an accident while driving, get injured, or damage your car, PLPD insurance will not cover the damages. This insurance is also known as public liability and property damage insurance. This is auto insurance for third parties, whether you refer to it as public or personal liability.
Personal Liability (PL)
If you cause an accident, legally, you must pay the medical bills of the people you hurt or the damaged property. That is a precisely personal liability or public liability. That’s the reason for car insurance
As we said 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 allow you not to have out-of-pocket expenses. It will cover these damages according to the agreed limits.
What to claim on your liability insurance policies when having an accident?
- The medical bills of any person your fault has injured in a car accident (pedestrians, other drivers, passengers, etc.)
- Pain and Suffering damages
- Lost wages
- Any other personal damages
Explaining Personal Liability Figures
Two examples represent personal liability coverage. You can find a personal liability insurance policy sold for 50,000 / 100,000. What does it mean?
First Example: This represents each insured’s maximum personal liability coverage. If your liability coverage statistics are 50,000 / 100,000, your car insurance company will pay a maximum of $50,000 per person for medical bills or other expenses. Unfortunately, when the damages caused to anybody exceed the amount of $50,000 in medical expenses and others, that person can sue you to be paid for all the damages received in the accident.
Second Example: This 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. With this insurance policy, your company will not pay more than $100,000 for a single accident.
Let’s recap the main ideas of personal liability auto insurance:
- It does not cover your damages, only other parties.
- Each state sets a different required amount of personal liability insurance.
- Your auto insurance policy may better protect you if you buy now pay later car insurance policy for more than the minimum coverage required in your state.
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. After a collision, if the other driver’s car is damaged, you must pay the cost of repairs to its owner, depending on how that value is defined. Fortunately, all or part of this amount will be covered by your property damage (PD) “component” of your liability insurance policy.
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.
Property damage coverage is expressed in a single number, unlike personal liability coverage, which is expressed in two numbers (per person and accident). A standard auto insurance policy is the third figure: 50,000/100,000/300,000. In this example, your car insurance company would have to pay up to $ 300,000 for property damages caused by an accident in which you were at fault.
PLPD Insurance against Full Coverage Insurance
In no state is it mandatory to buy full coverage insurance; however, PLPD insurance is required in most states. These two policies cover two different things:
- In a fault accident, PLPD insurance covers pain and suffering, medical bills, and other expenses caused by the collision.
- On the other hand, full coverage insurance encloses almost everything, including PLPD insurance, collision, and comprehensive coverage. Comprehensive coverage protects you against natural events and almost any damage unrelated to car accidents. Collision coverage helps pay for repairing or replacing your car after a collision with another vehicle or object.
When buying a new car, it is advisable to get full coverage to protect your investment. Instead, cheap PLPD insurance is advisable when you have a limited budget for auto insurance or if you drive an old car.