What Does PLPD Insurance Cover and What Does It Not?
Gain clarity on PLPD auto insurance. Understand its core function in covering damages to others and important limitations for your policy.
PLPD insurance, which stands for Personal Liability and Property Damage insurance, is a fundamental type of auto insurance. This coverage is designed to protect you financially if you are found at fault for an accident. It specifically addresses the costs associated with damages and injuries you inflict upon other individuals and their property. The policy acts as a financial safeguard, covering your legal responsibility to others rather than your own losses.
What PLPD Covers
PLPD insurance primarily covers two distinct areas: property damage liability and bodily injury liability. Property damage liability pays for the repair or replacement of property belonging to others that you damage in an at-fault accident. This can include damage to other vehicles, but also extends to stationary objects such as fences, mailboxes, utility poles, or even buildings.
Bodily injury liability covers expenses related to injuries you cause to other people in an accident where you are at fault. This can include medical expenses, hospital bills, lost wages due to injury, and even compensation for pain and suffering. Legal fees incurred if a lawsuit arises from the injuries you caused are also covered. The “other people” covered by this policy include occupants of other vehicles, pedestrians, or even passengers within your own vehicle.
What PLPD Does Not Cover
While PLPD insurance offers important protection, it has specific limitations regarding what it does not cover. This type of policy does not pay for any damage to your own vehicle. For coverage that addresses damage to your own car, you would need separate policies like collision insurance for accidents or comprehensive insurance for non-collision incidents.
PLPD insurance does not cover medical expenses or injuries for you, the policyholder, or your passengers. Other types of coverage, such as Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage, are designed to cover these costs. PLPD does not provide coverage for damage to your vehicle resulting from non-collision events like theft, vandalism, fire, natural disasters such as floods or hail, or incidents involving animals. These perils are covered under comprehensive insurance.
Who is Covered by PLPD
A PLPD policy primarily covers the named policyholder. Beyond the policyholder, the coverage extends to authorized drivers. These are individuals explicitly listed on the insurance policy or those who have received permission to operate the insured vehicle, such as family members residing in the same household or friends given occasional consent to drive.
The protection offered by PLPD insurance is directed towards claims made by third parties. This means the policy provides coverage for the policyholder and authorized drivers against financial responsibility for damages or injuries they cause to others. It does not provide direct benefits or compensation to the insured for their own losses or injuries.
Mandatory Nature of PLPD
Most states across the United States mandate that drivers carry a minimum amount of liability insurance, often referred to as PLPD, to legally operate a vehicle on public roads. This legal requirement ensures that a financial safety net exists for individuals who are injured or whose property is damaged in an accident caused by another driver. While specific coverage limits vary by jurisdiction, the underlying principle remains consistent across states.