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PLPD vs Full Coverage: What’s The Difference?

August 16, 2023 by Steven M. Gursten

PLPD vs Full Coverage: What's The Difference?

When comparing PLPD insurance vs full coverage there is an important difference. Personal liability property damage insurance only covers medical bills, lost wages and liability (when someone sues you for causing a crash). Full coverage auto insurance also covers medical bills, wage loss and liability, but it also includes vehicle damage and pain and suffering compensation when a person is injured by an uninsured or underinsured driver.

To learn more, please check out this video of Michigan Auto Law attorney Brandon Hewitt being interviewed by WZZM – 13:

Yes. There are different legal requirements for PLPD insurance vs. full coverage. All Michigan drivers must at least maintain personal liability and property damage coverage on the vehicles they own and drive on Michigan roads. Coverages such as collision and comprehensive are optional.

What is personal liability and property damage coverage?

PLPD stands for “personal liability and property damage” auto insurance coverage. It is generally considered to be the least amount of insurance coverage that a driver is required by law to carry on his or her own motor vehicle before driving it on a public road in the state where the driver lives.

What does personal liability and property damage car insurance cover?

The main things that PLPD car insurance covers in Michigan are: (1) medical bills if you are injured in a crash; (2) lost wages if your injuries disable you from returning to work; and (3) your liability for pain and suffering compensation and economic damages if you cause an auto accident that injures someone.

Here are more details about what personal liability and property damage covers in Michigan:

  • No-Fault PIP – This coverage provides auto No-Fault PIP insurance benefits to people who have been injured in a car crash to pay their medical bills and replace wages they have lost when their crash-related injuries have disabled them from working. (MCL 500.3101(1)) For their No-Fault medical coverage, drivers are now required to choose a No-Fault PIP medical benefits coverage level.
  • Liability or “bodily injury”Bodily injury liability coverage helps a driver pay for pain and suffering compensation and other economic damages that he or she may be legally liable for if the driver has been deemed at-fault in causing an auto accident that results in injury or death to another person. Michigan law requires all Michigan drivers to carry at least $250,000/$500,000 in liability coverage – but the law does allow drivers to purchase liability coverage with a lower minimum limit of $50,000/$100,000. (MCL 500.3101(1); 500.3131; 500.3009(1) and (5))
  • Property protection insurance (PPI)PPI pays for damage to another person’s tangible property, such as buildings, fences, trees and safely parked cars. PPI benefits will cover up to $1 million in damage to tangible property. (MCL 500.3101(1); 500.3121)
  • Property damage coverage – This provides a minimum of $10,000 in coverage in the event that you are at-fault in causing an out-of-state car accident that results in damage to another person’s vehicle. (MCL 500.3101(1); 500.3009(1)(c))

When comparing PLPD insurance vs. full coverage in Michigan, what is the main difference?

The main difference between PLPD insurance vs. full coverage in Michigan is that full coverage includes optional coverages such as collision, comprehensive, “uninsured motorist” (UM), “underinsured motorist” (UIM) and mini tort (or “limited property damage”).

When comparing PLPD vs full coverage, is there a difference in cost?

There is a difference in cost when comparing PLPD insurance vs. full coverage. Simply put, personal liability and property damage insurance will be cheaper because it does not include collision and comprehensive coverages, both of which are optional coverages.

These coverages can be costly and take up a larger portion of most drivers’ auto insurance bill. In general, buying collision coverage will always be more expensive because it is the largest expense for insurance companies.

Should you drop collision coverage?

A question that commonly comes up when comparing PLPD vs full coverage is ‘should I consider dropping collision coverage’ to save money on my auto insurance bill. On the one hand, dropping collision and comprehensive coverage to save money on personal liability and property damage may make financial sense if you have an old vehicle (10 years old or more) – that is neither a classic nor collector vehicle. The amount you are paying for premiums will likely far exceed anything you could receive on a claim if the vehicle was totaled in an auto accident.

On the other hand, by dropping the optional coverages that are included with full coverage, drivers are taking the risk of having to pay out-of-pocket for expenses in the event of a car crash. Remember, in Michigan you cannot sue the wrongdoer, at-fault driver who caused your car accident for vehicle damage as you could in most pure tort states around the country today.

For instance, when comparing PLPD vs Full coverage, you may want to keep the following in mind:

  • Without collision, drivers will have to pay out-of-pocket if a crash totals their car.
  • Without comprehensive, a driver will have to pay out-of-pocket if his or her car is stolen, destroyed by a fire or damaged by a storm or by an animal.
  • Without mini tort, if a driver causes damage to another person’s vehicle, the driver may have to pay out-of-pocket up to $3,000 toward vehicle damage repair costs.
  • Without UM and/or UIM, a person who has been seriously in a car crash may be unable to recover the pain and suffering compensation and other economic damages that he or she is legally entitled to if the at-fault driver was uninsured (or was an unidentified hit-and-run driver) or did not have adequate liability insurance coverage.

Have questions about how your PLPD insurance vs full coverage insurance applies to your auto accident? Call Michigan Auto Law for a free consultation with an experienced insurance lawyer

If you have been injured in a car crash and you have questions about how your PLPD insurance applies vs full coverage insurance and how it might affect your legal rights to pain and suffering compensation, economic damages and auto No-Fault insurance benefits, you can call toll free anytime 24/7 at (248) 353-7575  for a free consultation with one of our experienced attorneys. You can also get help by visiting our contact us page or you can use the chat feature on our website.

PLPD vs Full Coverage: What\'s The Difference?

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