PLPD Car Insurance: What Are The Drawbacks?

PLPD car insurance is a kind of insurance that only covers the state mandated liability for a driver operating a motor vehicle. PLPD stands for "personal liability and property damage". It has become a kind of generic term for talking about a policy that just meets, but does not exceed, state requirements. Every state has its own auto insurance requirements for limiting specific eventualities in claims situations where different parties have to fight over who is going to pay after a crash or other incident.

Although PLPD car insurance does by its own definition meet the requirements of the state, it's not a great kind of policy for most drivers on the American roadway. There are a number of situations where PLPD serves as a drawback, and a lot of drivers tend to stay away from this option. However, every driver's situation is different, and every driver has specific liabilities they have to look out for when purchasing the right auto insurance for their vehicles. Here are some reasons why PLPD may not be a good idea for you.

No coverage for your car - Under PLPD policies, there is no coverage for the driver's own vehicle. The insurer will pay for damage to the other driver's vehicle, but not yours. Your vehicle is an investment, and if you have put significant money into buying and maintaining it, you don't want to have to pay for extensive bodywork or other costly repairs.

Not good for financing - If your auto financing deal includes a lien on the vehicle or other similar situations, the dealer or other financing lender will insist that you take out more article insurance then just simply the PLPD policy. That's because they have also invested in your debt on the vehicle, and they won't settle for insufficient insurance that would leave a lot of liability in the case of a crash.

Rising liability costs - With things going the way they are in auto insurance, your PLPD policy probably does not cover the cost of basic liability. Lots of drivers are purchasing even more additional insurance in the form of uninsured motorist coverage because so many individual's policies max out before covering the entire cost of a claim.

Lack of medical and lost wage compensation - If you look closely at a PLPD policy, you'll probably see that its provisions do not cover a range of other costs from a crash, such as compensation for lost wages as well as medical bills. All of these things will require additional auto insurance over and above a PLPD policy.

Consider all of these liabilities before buying your PLPD car insurance to make certain that you will not regret being inadequately covered.