What exactly is PL/PD?
PLPD Stands for Public Liability and Property Damage. It's a very common term, but what it means can vary in every state. The following information pertains specifically to Michigan. It's basic meaning is that your auto insurance policy contains only the types of coverage required by law.
Liability Coverage (PL)
The minimum amount of Liability Coverage you can carry in Michigan is $20,000 per person, and $40,000 per accident. Most policy holders increase this coverage, since the state minimums provide very little coverage in our litigious society. Common amounts chosen are $100,000 per person / $300,000 per accident - as well as $250,000/$500,000. Many clients find that limits in excess of $1,000,000 are needed. Contact us for additional information!
Property Damage Coverage (PD)
The minimum amount of Liability Coverage you can carry in Michigan is $10,000. Again, most clients will increase this coverage. Property Damage coverage typically only applies to out-of-state accidents. If you travel out of state and you cause an accidnet, you can be responsible for all property damage caused to the other parties vehicle (as well as medical expenses, pain and suffering, and lost wages!).
Property Protection Insurance (PPI)
This is another coverage required by Michigan law. It covers property damage to buildings and other property (not including vehicles). The exception is if a vehicle is properly parked - in which case they are considered "property" instead of a "motor vehicle". The standard PPI coverage in Michigan is $1,000,000 and is included with every PL/PD policy.
Have questions? We're here to help. Call Kris @ 734-662-3100 extension 27 for more information.
Note: The information in this article is designed to be a general overview of the topic. None of the information provided is to be used as a baisis for buying insurance. As always, you should talk with your agent for specific information regarding these coverages before making a buying decision.