What is PLPD (Public Liability and Property Damage) auto insurance?


This kind of auto insurance coverage helps you pay for any liability you incur as a result of a car accident you cause. That is, if the car accident resulted in:

  • injury to the passengers and drivers of other cars or pedestrians
  • damage to property - not just to cars, but also to houses, buildings, walls, lamp posts, etc.
  • legal costs you will incur when you face a liability lawsuit
  • injury to you and your passengers. Please note that not all PLDP policies provide this and if they do, it will be for an amount smaller than what will be paid out to third party claims.

PLDP Auto insurance is the basic kind of coverage - the minimum that the state requires you to carry when you drive. The minimum requirements will vary from state to state.

What's Not Covered

PLDP auto insurance will only cover expenses or damages you cause to another party and will not pay for any damages or expenses you incur for yourself and your car.

That means that if you are at fault and you only carry PLDP auto insurance, you will have to bear the costs of having your car fixed or of medical expenses needed to treat your injury. You will need other kinds of auto insurance coverage for these - collision and comprehensive insurance for damage or loss to your car and personal injury protection for your bodily injuries.

Cover Your Assets

Please remember that PLDP auto insurance is set at the minimum legal requirement, which for most states are quite low. This may mean that you actually are not adequately protected against liability.

If you are made liable in a serious accident, other parties may go after your assets and potential income in order to claim for your liability with regards to them. The injured parties or those who suffered from loss may file a lawsuit against you after they have exhausted the maximum limits of your policy. That is why it is a good idea to get enough coverage vis-a-vis your assets.

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