No matter what kind of car you drive or how old you are, it’s important to have some form of auto insurance when getting behind the wheel. This safety net can keep you from having to break the bank in the event of a car accident or any other incident that may happen while you’re on the road. Throughout the United States, there are minimal requirements for insurance in order for anyone to even consider buckling up. That’s where some are turning to PLPD insurance.
Understanding PLPD Insurance
You might be asking yourself, what is PLPD insurance? PLPD insurance, or personal liability and property damage insurance, is a type of car insurance coverage that protects you in the event of an at-fault accident that causes injuries to another person or damage to property. In some states, it’s the minimum coverage needed to drive legally. This type of coverage takes effect when you’re the at-fault party in a car accident. Being negligent or at fault in an accident makes you liable for damages, whether you have collided with another vehicle or backed up into an electric pole.
The personal liability portion of PLPD insurance covers injuries that you cause to other people in those situations. The property damage portion covers damage to personal or public property caused by your vehicle. This does not cover your own vehicle. For protection, you will need more comprehensive collision coverage. Personal liability and property damage insurance is genuinely fundamental coverage for all auto insurance policies.
PLPD Coverage Elements
Depending on the type of accident that happens and the damage brought by it, you may need either or both parts of your PLPD insurance policy. Personal liability coverage, which is also referred to as bodily injury coverage, can cover the injuries, lost wages, and pain and suffering of the driver, passengers, or others involved in the accident in which you are the at-fault party. Liability coverage is often written as a fraction, like 100,000/200,000. These are known as split limits or the maximum amounts of damage that are covered. The first number is the maximum per person. The second number is the maximum per accident.
Property damage is included in all car insurance policies. This coverage takes effect if you cause damage to property with your vehicle to another vehicle, building, fence, street sign, or other elements. Property damage coverage is typically displayed on an insurance policy as the third number after your personal liability coverage. That’s the limit as to how much your insurance provider will pay out per accident in PD claims.
How much your insurance company will cover you under a PLPD policy depends on the limits of your particular policy and how large the claims filed are in relation to an accident. Let’s say multiple people are injured in an accident. Claims are paid out on a first-come, first-serve basis by the insurer. This means whoever files a claim first has the first opportunity at being covered up to the stated limits on your coverage. Those maximums on your insurance policy are the ceiling for what your insurance company will have to pay.
The amount of PLPD insurance you attain will vary based on where you are in the United States. For example, in Michigan, the minimum requirements for personal liability insurance are $20,000 per person and $40,000 per accident. The property damage coverage minimum is $10,000 per accident. Michigan’s insurance requirements are not the same as New York’s or California’s, so it’s important to check with your state’s Department of Motor Vehicles to find out the minimum requirements. Having that wealth of knowledge will allow you to figure out the right amount of PLPD coverage for you and those on your car insurance policy.
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