What is PLPD Insurance?
PLPD stands for Public Liability and Property Damage. It is the lowest level of coverage you may purchase and still satisfy a state’s car insurance laws. This coverage meets the state’s minimum requirements but offers no coverage to your own vehicle in the event of an accident.
In most states, the minimum requirements to drive include insurance that covers property liability and property damage. PLPD insurance provides coverage in the event that your vehicle causes damage or injury to a third party or their property. However, PLPD insurance offers no coverage for damages to your own property or your own injuries in the event of an accident. For this reason, many people find PLPD insurance insufficient and usually opt for an option that covers their own damages to avoid paying high repair bills out-of-pocket.
Choosing PLPD Insurance
Why choose PLPD insurance at all? Some people choose PLPD insurance because it is the cheapest option available. Car insurance is required, but often drivers cannot afford it. Therefore, they choose PLPD insurance in order to comply with state laws. However, since PLPD does not cover any damages to your own vehicle, it can actually end up being much more expensive to repair your car or buy a new car in the event of an accident. For this reason, it is often smart to opt for a car insurance plan that offers more benefits to prevent high out-of-pocket expenses.
Others might choose PLPD insurance if they are temporarily driving an older or already-damaged vehicle. If they are planning on getting a new vehicle soon, it makes sense to use PLPD coverage while driving the older or damaged vehicle. If addition, those who very rarely drive their vehicles might opt for bare-bones car insurance.
If you are looking for an inexpensive car insurance policy that still meets your needs, contact the Chicago car insurance agents of Insure on the Spot at 773-202-5060.