What Does PLPD Auto Insurance Cover?

According to the website CarInsuranceRates.com, PLPD stands for "Personal Liability Property Damage." A term that originated from Michigan's auto insurance requirements, PLPD is the most basic liability auto insurance policy on the market and only covers damage the policyholder inflicts on other vehicles, property and other individuals on the road.

Legality

• PLPD coverage is the only auto insurance requirement in most states, according to the website AmPmInsure. In states such as Texas, California and Illinois, PLPD auto insurance is the only state-mandated insurance required in the state. Other states, such as Florida, New York and Kansas, require other types of auto insurance coverage on top of PLPD, such as uninsured motorist or personal injury protection insurance.

Benefits

• The largest benefit of PLPD auto insurance coverage is the cost of the premium. Without the coverage protection for the policyholder, his passengers or his own vehicle, the costs associated with the coverage are significantly less, resulting in a cheap, bare-bones policy. If you live in state with only minimum liability coverage required, PLPD also guarantees that you are meeting the state's legal requirements.

Considerations

• In the case that the policyholder causes an accident and needs help covering damages to her own vehicle, herself or passengers, PLPD coverage may end up costing the driver more after an accident, as she is still responsible for her own damages out-of-pocket. For more comprehensive auto insurance, drivers can cherry pick a policy on top of PLPD that is based on their own budget. This may include personal injury protection, which protects the policyholder and her passengers, and collision or comprehensive coverage, which covers any damage to the policyholder's vehicle.

Ideal Buyers

• According to AutoInsuranceRates.com, PLPD coverage is not ideal for most drivers, with the exception of those that rarely use their vehicle, drivers with an older or low-value vehicle that is worth less than the cost of basic coverage and those individuals who simply cannot afford anything more than the most basic plan.

Cost

• The cost of PLPD auto insurance coverage varies by state, the insurance company, the type of vehicle being insured and the driver's history, which includes his age, credit score and number of traffic infractions or insurance claims. PLPD is often written as three numbers within two slashes, such as 25/50/10. Each number represents the amount of coverage, in thousands of dollars, that a policyholder is covered for if he respectively injures one person, multiple persons or another vehicle or property.