PLPD Insurance in Michigan : What Is It and Why Is It Required?

PLPD stands for Personal Liability and Property Damage, which may refer to different things depending on your state. However, PLPD coverage basically refers to the minimum coverage required by law. Almost every state, including Michigan, requires car owners to purchase PLPD.  If you are unsure about auto insurance policy to purchase, our car accident lawyers can help go over your options and help you get the best insurance to fit your needs.

What Does “PLPD” Refer To in Michigan?

PLPD usually comprises two distinct categories of coverage: the personal liability component and the property damage component. In Michigan, this is translated into the basic no-fault policy. The No-Fault Act of Michigan requires that car owners purchase a no-fault policy, which has three parts: Personal Injury Protection (PIP), Property Protection (PPI), and Residual Liability Insurance.

  • Personal Injury Protection (PIP)

If you were injured in a car accident, PIP covers your medical expenses, wage loss, and other related expenses. For medical expenses, there is no maximum limit. As for wage loss, PIP will pay up to 85% of the income you would have earned if you had not been injured up to a 3-year period. Take note that the amount you can be paid for lost income has a limit, the amount of which is revised annually.

  • Property Protection (PPI)

PPI will cover the damages your car caused to other people’s property, such as fences or buildings. However, this does not include damage to other vehicles, except for parked vehicles. If your car damaged a parked car, the damage would be covered by PPI. PPI does not have a mandatory minimum policy limit, but its benefits coverage is capped at $1 million.

  • Residual Liability Insurance

In case you are sued because of a car accident, and the court finds you legally responsible, you are covered by your Residual Liability Insurance. Residual Liability Insurance covers bodily injury and property damage.

Liability for bodily injury has the following coverage:

  • Up to $20,000 for a person who is injured or killed in an accident
  • Up to $40,000 for each accident if several people are injured or killed

Liability for property damage covers:

  • Up to $10,000 for property damage in another state

However, if the court awards damages amounting to more than your policy coverage, you will be responsible for paying the excess amount. Thus, several people choose to purchase higher limits of liability insurance to protect themselves.

What Is Excluded From PLDP Coverage in Michigan?

As mentioned earlier, PLPD is only the absolute minimum coverage required by law. As such, there are other important kinds of auto insurance coverage excluded by PLPD. Some of these are:

  1. Collision Coverage

Collision coverage pays for the repairs to your car if it was damaged in a car accident.

  1. Comprehensive coverage

In case your car was damaged by something other than a collision with another vehicle, such as fire, theft, or flooding, comprehensive coverage pays for the repairs to your car.

  1. Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage

If you’re involved in a crash caused by a driver who was uninsured or underinsured, UM and UIM cover the damages you may incur. This is useful in case of a hit-and-run or when your car is hit by a driver who is covered by a policy with inadequate liability limits.

  1. Mini-tort coverage (or Limited Property Damage)

If you are found to be 50% or more at-fault for a car accident, mini-tort coverage pays up to $1000 of damages to the other vehicle. 

  1. Towing and Rental Car Coverage

Towing and Rental Car coverage pays for the cost of towing and/or a rental car for unexpected events, such as an accident, breakdown, or flat tire.

To better protect yourself on the road, we recommend that you purchase car insurance with more comprehensive coverage than that of PLPD. Nowadays, the cost of extra coverage is reasonable as compared to the possible costs of accidents in the long run.

Contact The Clark Law Office About Your PLPD Concerns.

At The Clark Law Office, we have a professional and dedicated team of auto accident lawyers who can help you get the best results for your case. Our years of experience have honed our astute trial capabilities and given us comprehensive knowledge of Michigan’s injury and negligence laws. For a free consultation, call (517) 347-6900 or contact us today.