The state of Michigan requires that all drivers have insurance coverage for their vehicles. The two main types are comprehensive and PLPD. But what is PLPD insurance in Michigan and what does it cover?
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What is PLPD Car Insurance?
Standing for Personal Liability and Property Damage, PLPD is found in several different states. In Michigan, it means that the insurance policy covers liability and any damage to property up to pre-set levels. Since Michigan is a no-fault state, PLPD was put in place to provide the proper coverage in case an accident occurs.
- Minimum Liability Coverage: $20,000 per person, $40,000 per accident
- Minimum Property Damage Coverage: $10,000
You should carry a greater amount of coverage to insure the most serious accidents, and injuries are fully covered. Recommended amounts for liability are $250,000, accident $500,000, and property damage $100,000. With that amount of coverage, all but the most devastating accidents will be covered by your policy.
What does Personal Liability and Property Damage Cover?
So, if you have PLPD coverage, you have the following;
- Property Damage: For out-of-state accidents
- Property Protection Insurance (PPI): For in-state accidents
- No-Fault Personal Injury Protection (PIP)
Note that property damage includes damage to vehicles that are parked. This helps separate it from collision insurance which is a different type of coverage.
What it Doesn’t Cover?
Under the Michigan PLPD insurance definition, both collision and comprehensive are not covered under the policy. However, they are most often required by lenders to protect the vehicle that you have purchased with their money. Comprehensive covers fire, vandalism, and theft which you may want to protect your car.
Keep in mind that you can add options to your insurance.
It is wise to talk to your agent or insurance company to find out more about what types of riders or policies that you can add. Keep in mind that Personal Liability & Property Damage coverage does not include comprehensive or collision, it is considerably less expensive. This is why PLPD has become an attractive form of coverage for many Michigan residents.
How Much Does PLPD Car Insurance Cost In Michigan?
Did you know that the state of Michigan has the highest car insurance rates in the country? It is not unusual for Michigan residents to spend up to 8% of their yearly income to insurance their vehicle.
The average price of a PLPD policy in Michigan is $2,226 a year. This amount varies a lot in function of location. The most expensive zip code is in Detroit with an average of $5,109 in yearly premiums for the 48227 zip code. The most affordable location is in Champion (49814) with $1,7893 a year.
Note that, the amount mentioned here will vary significantly from time to time. So, get your rate now by clicking here.
Michigan auto insurance rates are so high because this is the only state that requires residents to carry a no-fault insurance that covers unlimited medical expenses. Insurance providers have to cover any reasonable medical costs as well as work loss for up to three years.
Michigan residents are also required to carry 20/40/10 in liability coverage or more, $10,000 in property damage liability and $1 million in property protection insurance.
It is legal for insurance companies to use credit scoring to adjust their rates. Some residents with a poor credit score end up paying a lot more for the same amount of coverage. A consumer’s driving record and the type of vehicle they drive will also impact how much they spend on insurance.
Are insurance companies telling you the truth?
There is a debate regarding the fact that insurance companies are not legally required to disclose how much they make. Even though insurance companies argue that rates are so high because of the unlimited amount of medical coverage that drivers have to purchase, some believe that rates are so high because insurance providers are not required to be transparent.
Because credit scoring and other factors are taken into consideration when determining the auto insurance rate of a driver, it is important for Michigan drivers to shop around before buying a policy.
Why PLPD May Work for You?
This is the type of cheap PLPD auto insurance for Michigan residents who fully own their vehicles. It covers the basics in a nice, neat package that is very affordable. The insurance covers many of the common types of accidents that occur and can be set at very cheap rate.
However, at the minimum levels, this will not cover major damage very well. This means that you could owe thousands of dollars out of pocket which may cause a hefty financial burden. So, it is wise to purchase personal liability and property damage, at higher levels to cover potential significant damages.
PLPD is the perfect type of insurance for fully owned older vehicles. This means that there are no liens against the car or truck. When the value of the car drops considerably, this is the time to consider PLPD because of the cost-effectiveness of the policy.