What is PLPD car insurance?

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Asked January 23, 2016

1 Answer


In both business and private auto insurance, you are likely to encounter the letters PLPD, which is sometimes presented as PL/PD instead. The meaning is the same regardless of how the letters are expressed, even though that can be confusing when you are looking for coverage. The letters stand for Personal Liability and Property Damage and encompass the most common type of auto insurance coverage required under the minimum requirements according to state laws. You are probably most accustomed to hearing this coverage referred to as just liability insurance.

If you or your authorized employees are driving a company vehicle and are involved in an accident, you will be responsible, or personally liable, for the damages and injuries that were caused. Since there is some form of liability in every vehicle incident, this type of protection is the most commonly needed coverage for auto insurance and is what most states declare as part of the minimum insurance requirements. The minimum coverage levels are going to be different but remember that, in every state, this is mandatory coverage. You are responsible for making sure your vehicle insurance policies meet the policy limits set forth by your state.

Keep in mind that the default limits of a PLPD policy are minimum requirements and should not be considered complete protection. Those limits are typically low, but the potential for costs is high. If you are liable for more damages than your policy will cover, the remainder of the costs are still considered your responsibility and you will have to pay that money out of pocket. This could be significant when you consider suffering, wages, replacement costs, medical expenses, vehicle damage, and other factors. You don't need maximum coverage but, you do need sufficient coverage. For many businesses, the amount of liability coverage they need increases according to the type of business. For example, if you have a fleet of large vehicles that could cause a substantial amount of damage, or that introduce risks while being driven, your rates are likely to be much higher than a business with only one or two compact cars to insure.

You have options for increasing the amount of PLPD coverage you have. The first option is to increase the limits on your policy. This option will increase your monthly premiums, sometimes substantially if you have several vehicles or expensive equipment in them because then you'd need to include property protection insurance. The second option is to purchase an Umbrella Liability policy. This type of policy works across all of your liability needs, including auto, building, and business without existing as separate policies. Umbrella policies kick in when the regular coverage is exhausted, and cost very little when compared to auto insurance costs.

Answered January 26, 2016 by Anonymous

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