PLPD Insurance – What is it and When is it Useful?
PLPD stands for Public Liability and Property Damage. This type of car insurance usually meets the minimum state requirements for car insurance for the lowest price. Although bare-bones, basic, low-cost insurance sounds nice at first, there are many disadvantages to PLPD insurance, and in many cases, it is a better idea to purchase a car insurance that offers more coverage and simply shop around to secure a low price.
PLPD insurance provides coverage if you cause an accident that in turn causes property damage or bodily harm to another party. The insurance covers the damages to the other party, but provides no coverage to your own vehicle. Therefore, any damages to your own property or any of your own medical bills are paid for out of your own pocket. In the event of an accident, the thousands of dollars in vehicle repairs and medical costs that you must pay without assistance makes PLPD insurance a deceptively expensive option. In most cases, it is better to purchase a car insurance option that at least offers some protection for your own property and personal injuries.
There are some situations, however, when PLPD insurance coverage might be a smart choice. For example, if you are driving an old or damaged vehicle temporarily, you may want to consider this type of insurance. If you are planning on investing in a new vehicle soon, it makes sense to purchase coverage for your old, damaged car that offers no personal protection in the event of an accident.
Another reason you might want to purchase PLPD insurance is if you very rarely use your vehicle. The less you use your vehicle, the less likely you are to get into an accident. If your car spends the majority of its time parked in the garage, purchasing minimum insurance might make sense.
Most people who purchase PLPD insurance do so because it is a very low cost option. Those who simply cannot afford a higher level of coverage but still need to use their vehicle might consider purchasing PLPD insurance. However, because of the high out-of-pocket expense that comes from an accident, it is usually a better idea to purchase a higher level of coverage and simply shop around for your best car insurance rates.