If you drive a car or are planning to do so, you must be aware of the fact that you are required to have PLPD insurance over for your car to drive it legally. For most people, PLPD auto insurance is a confusing term and they do not know what it is for and hoe does having one helps you protect your vehicle from monitory damages from an accident. This article explains the concept of PLPD insurance.
In simple terms PLPD insurance cover is a liability coverage that is paid by your insurance firm to the other driver for his medical bills and property damage if you cause an accident with him. If you do not have this insurance cover, you can be sued by the other driver for the damage. Thus PLPD protects you against this, but other than this it offers you no other benefits, this means that this kind of insurance policy is strictly to protect you in cases of accidents caused by you. You will not get reimbursed for any repair or replacement for your own vehicle. Most of the times the insurance agents will show you only the PLPD auto insurance quotes in case you wish to pay the least amount for your auto insurance cover. A typical PLPD insurance covers only the liability costs at the minimum limits required by the state. This cost may satisfy the minimum insurance requirements of your state but this may not be able to protect you completely against all accidental damages. You must thus understand your own requirements in case you need any extra coverage.
This PLPD insurance policy may be different from state to state. For example, in Michigan which has now become a no fault state, in recent times the meaning of a PLPD auto insurance cover has changed a bit. There the driver must carry with him personal injury protection coverage in addition to the liability insurance. Thus in Michigan, the PLPD insurance cover also includes the personal injury protection to meet the requirements of the state.
Now, how to know if PLPD insurance is enough for you? The answer is simple. If you have a low frequency of incurring financial losses and own a few assets, then PLPD might be enough to fulfill your insurance requirements. Now that you know what PLPD insurance is, you can use it wisely to save money on auto insurance.
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