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Buying Car Insurance

What is PLPD Insurance?

PLPD insurance stands for Personal Liability and Property Damage insurance. It’s a common term, but will mean something different in each state. Its basic meaning is that your auto insurance policy contains the minimum types of coverage required by state law. Motor vehicles on the roads are required by law to carry PLPD insurance in almost every state, including Michigan. Below are the types of mandatory auto insurance coverage for Michigan, including the minimum coverage limits:

Liability coverage: In Michigan, the minimum amount of Liability coverage you must carry is $250,000 per person and $500,000 per accident.  However, we recommend that you never carry less than $500,000 per person and $1,000,000 per accident. The difference is usually only a few dollars more.

Property damage coverage: This provides coverage in the event the insured is at-fault in causing an out-of-state accident that results in damage to someone’s else car or vehicle. Under Michigan law, the minimum amount of Property Damage coverage you must carry is $10,000.

Property protection insurance: In Michigan, Property Protection Insurance (PPI) is required by law.  PPI covers property damage to buildings and other non-vehicular property, with the exception of parked cars.  Parked cars are considered property as opposed to motor vehicles. PPI coverage in Michigan is limited to $1 million.

Personal Injury Protection coverage: In Michigan, Personal Injury Protection (PIP) coverage is also required.  PIP coverage is the heart of No-Fault coverage and pays your medical expenses, wage loss and other related expenses if you are injured in an auto-related accident. Here’s more information on No-Fault PIP coverage.

What is NOT part of PLPD insurance coverage?

Below are the important types of auto insurance coverage that will not be part of a PLPD insurance policy:

Collision Coverage: Collision coverage pays to repair the insured’s car or truck if it was damaged in Michigan car or truck accident. It’s optional and there are four types of collision coverage:

  1. Broad form collision coverage;
  2. Standard collision coverage;
  3. Limited collision coverage without a deductible; and
  4. Limited collision coverage with a deductible.

Comprehensive coverage: Comprehensive coverage pays to repair car or truck damage caused by something other than a collision with another car, such as fire, theft, vandalism, hail or flooding. It also pays for damage caused by hitting an animal, such as a deer.

Uninsured/Underinsured Motorist coverage: Uninsured Motorist (UM) and Underinsured Motorist coverage (UIM) protects you in the event you’re in a crash caused by a driver who was uninsured (a hit-and-run driver is treated as an uninsured driver for UM purposes) or by a driver who was covered by a policy with inadequate liability limits. Here’s more information about Uninsured Motorist Coverage and Underinsured Motorist Coverage.

Mini-Tort coverage (also called Limited Property Damage): If you are at-fault for damage to another motor vehicle (not a parked car), your insurance company will pay up to $1,000 (or $3,000 after July 1, 2020) of the cost to repair the damage to the other vehicle. However, the mini tort only covers vehicle damage that is not otherwise covered by the other person’s insurance policy. This is called a mini tort claim. (Note: So long as you were insured at the time of a crash, the mini tort limits your liability to $1,000 9or $3,000 after July 1, 2020) for any damage you may have caused to another driver’s vehicle.) Here’s more information about the Michigan mini tort.

The Bottom Line on PLPD Insurance

Therefore, if you have PLPD insurance coverage in Michigan, what you really have is liability, property damage (for out-of-state accidents), PPI (for in-state accidents) and No-Fault PIP.  You may or may not have mini tort coverage, although most people do. What you will not have is collision coverage or comprehensive coverage, although some people still carry comprehensive without the collision coverage.