What is PLPD car insurance?

Personal liability and property damage (PLPD) insurance is more commonly known as liability insurance. In the event of an at-fault accident, it will cover any damages you’re liable for, up to your policy limits. Although PLPD insurance does provide compensation for injuries to others or for damage to their property, it won’t apply to your own losses.

“Nearly all states require a minimum amount of bodily injury and property damage liability coverage,” says Carole Walker, executive director of the Rocky Mountain Insurance Association.

However, state-mandated minimum liability coverage amounts are often too low to offer adequate financial protection in the event of a major accident. Experts recommend obtaining as much coverage as you can afford.

Michigan, which is known for its complex no-fault car insurance laws, is the only state where PLPD insurance is the preferred term for liability coverage.

Key highlights

• Personal liability and property damage (PLPD) insurance is known more commonly as liability insurance.
• The cost of liability insurance varies widely from carrier to carrier and from state to state.
• Geico has the cheapest rate for liability insurance, averaging $47 per month for 50/100/50 coverage limits.

What is PLPD car insurance?

Personal liability and property damage (PLPD) car insurance – also known as liability insurance – covers damage you cause to another person or to their property. There is no deductible, but there are limits to how much financial protection PLPD offers.

Coverage amounts are expressed as three numbers; for example, 50/100/50. The first figure, $50,000, represents the amount of bodily injury coverage per person. The second figure, $100,000, is the amount of bodily injury coverage per incident. The final figure, $50,000, represents the amount of property damage coverage.

What is personal liability insurance?

Personal liability insurance is also referred to as bodily injury coverage. If you injure another person in an accident, this coverage will help pay that individual's medical expenses. This might include everything from a visit to the emergency room to rehabilitative services and prescriptions, as well as lost wages and legal fees in some cases.

What is property damage insurance?

If you damage someone else’s property — whether it’s another car, a building or something else — this type of coverage will protect you, up to your policy limits. As with personal liability insurance, property damage insurance does not provide any coverage for the policyholder or his or her vehicle.

How does PLPD insurance work?

Here is an example of how PLPD insurance might work. Imagine you have liability insurance with coverage of 25/50/25.

If you crash into another car and the driver sustains injuries that require $30,000 in medical bills, your per-person liability insurance will cover the first $25,000 of these bills, and you will be on the hook for the remaining $5,000.

If there are three people in the car and all three are hurt and rack up medical bills of $25,000 each — or $75,000 in total — your $50,000 in per-incident coverage means you will be responsible for paying the last $25,000 out of pocket.

On the other hand, if you hit someone else’s car and no one is injured, you only will be responsible for the damages to the vehicle. In this example, if the accident causes $15,000 in damage to the other driver’s vehicle, your property damage coverage would apply and – because the claim is below your limit – you would owe nothing.

How much does PLPD car insurance cost?

Insurance premiums are based on a number of factors, from your age, the car you drive, to where you live and more. But generally speaking, PLPD car insurance is relatively inexpensive, ranging from $47 to $83 per month on average.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. 

How much car insurance do you need?

Whether it’s called PLPD insurance or liability insurance, virtually every state requires its drivers to carry a minimal amount of coverage. How much insurance you must purchase varies from state to state, but the minimal amount isn’t likely enough to fully protect you financially.

Some states also require drivers to purchase underinsured/uninsured motorist coverage, which kicks in if you’re hit by another driver who either lacks insurance entirely or does not have sufficient coverage amounts.

There are also a dozen no-fault states, which require drivers to have personal injury protection (PIP) insurance. In no-fault states, which include Florida, Michigan, New York, New Jersey and Pennsylvania, you don’t need to prove who caused an accident to receive an insurance payment. Drivers involved in an accident file a claim with their own insurer to cover any medical bills.

Here is a look at how much liability insurance drivers are required to carry in each of the 50 states. Remember, these are the minimum amounts required by your state, and they are unlikely to keep you adequately protected:

How do you get PLPD car insurance?

No matter what kind of car insurance you need, or how much coverage you need, the basic process for buying a policy is the same:

• Figure how much insurance you need. You are required to purchase at least the minimum amount of liability coverage for your state. But you will likely need to increase your coverage beyond that minimum if you want to ensure that you are adequately covered.
• Determine if you need other coverages. Does your state require drivers to purchase underinsured/uninsured motorist and personal injury protection (PIP) insurance? Does your lender require you to buy collision and comprehensive coverage? If not, are you comfortable skipping these types of insurance?
• Start shopping around. The best way to get the right policy at a great price is to compare quotes from several insurers. You can do this insurer by insurer or speed up the process by using a website that compares quotes from many providers instantaneously.
• Look for discounts. Ask auto insurers about the discounts they offer and whether you qualify for them. Many insurers offer price breaks if you bundle multiple types of insurance coverages with them, for example. Many other discounts should be available.
• Purchase your new policy. Once you find the best company for your needs, purchase coverage. Remember, you can always change to another insurer if your current provider isn’t working out.

When should you switch to PLPD insurance?

If you carry full-coverage car insurance — including collision and comprehensive insurance — there may be situations where you can cut back to simply carrying PLPD insurance and save money.

“Some drivers may opt not to carry this protection, especially on older vehicles that may not be high value,” Walker says. “The premium may not be worth the amount insurance will pay if the vehicle is damaged or destroyed.”

However, before you drop collision and comprehensive insurance, it’s important to know whether you can afford to pay out of pocket if your car is damaged or destroyed by something – such as if you hit a tree or your car is stolen, Walker says.

“With increasing catastrophes and costs to repair, drivers especially need to consider comprehensive insurance, which pays for hail, wind, fire, and flood vehicle damage,” she says.

Frequently asked questions

How does PLPD insurance work in Michigan?

PLPD insurance is just one kind of insurance required if you want to drive legally in Michigan, which has some of the most complicated auto insurance laws of any state. Residents who drive must obtain PLPD insurance, but it only applies to accidents that occur out of state, according to the Michigan Department of Insurance and Financial Services.

Michigan is known as an at-fault state, meaning that regardless of who was responsible for the accident, you must file for damages with your own insurer. Residents who drive must obtain personal injury protection (PIP) insurance for this purpose, and there are strict laws limiting if you can sue for damages.

Michigan drivers also are required to purchase personal protection insurance (PPI), which applies if you’re found at fault for damage to parked vehicles or other stationary objects. Residual liability (bodily injury and property damage) insurance is also required. It applies in select situations to legal costs, out-of-state accidents and damages that exceed your PIP coverage limit.

What is the difference between PLPD and full-coverage insurance?

PLPD coverage protects you from the cost of damages that result when you are responsible for hurting another person or damaging their property. This coverage does not apply to your own vehicle or medical bills.

Full-coverage car insurance protects your car and includes both collision and comprehensive coverage. This insurance typically contains a deductible, which is the amount you must pay before your policy kicks in, and only covers you up to the fair market value of your car.

Collision insurance applies if your vehicle strikes another automobile or stationary object, while comprehensive insurance applies to non-collision events like theft, vandalism or severe weather.

Does PLPD cover windshield replacement?

PLPD insurance does not cover windshield replacement. To obtain such coverage, you must purchase comprehensive insurance or, in some states, a separate windshield glass policy

Is PLPD car insurance worth it?

Because nearly every state requires some form of car insurance in order to drive legally, it’s not a stretch to say that PLPD car insurance is worth buying. But states only mandate a base level of coverage, which is rarely sufficient in the event of a costly major at-fault accident. If you can afford to carry more than the bare minimum of auto insurance, do so. It could save you from hundreds or thousands of dollars in out-of-pocket expenses.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.