Car insurance can feel overwhelming, especially when you’re trying to save money while staying legally covered. PLPD insurance, short for Personal Liability and Property Damage, is one of the simplest and most affordable types of auto insurance. It’s a great option for drivers who want basic protection without the extra cost of comprehensive or collision coverage.
In this guide, we’ll explain what PLPD insurance is, what it covers, what it doesn’t, how much it costs, and whether it’s right for you.
What Is PLPD Insurance?
PLPD stands for Personal Liability and Property Damage insurance. It’s a basic car insurance policy that covers two key areas:
- Personal Liability (Bodily Injury): Pays for medical bills, lost wages, or legal fees if you cause an accident that injures someone else.
- Property Damage: Covers damage you cause to someone else’s property, like their car, fence, or mailbox.
PLPD is often called liability-only coverage because it doesn’t protect your own car. It’s designed to meet your state’s minimum legal requirements for driving.
What Does PLPD Insurance Cover?
Here’s what PLPD insurance typically includes:
- Bodily Injury Liability: Covers medical costs, lost income, and legal fees if you’re at fault in an accident that hurts someone else.
- Property Damage Liability: Pays for repairs to another person’s car or property damaged in an accident you caused.
For example, if you hit another car at a stoplight, PLPD will cover the other driver’s repairs and medical bills—but not your own car’s damage.
What PLPD Insurance Doesn’t Cover
PLPD is basic coverage, so it leaves out several things:
- Your own car’s damage (if you cause the accident)
- Theft, vandalism, or fire
- Weather damage (like hail or floods)
- Medical costs for you or your passengers
- Damage from uninsured or underinsured drivers (unless added separately)
Because of these gaps, PLPD is often best for older or low-value cars where paying for full coverage might not make sense.
Who Should Get PLPD Insurance?
PLPD insurance is a good fit for:
- Drivers with older cars: If your car’s value is low, full coverage might cost more than it’s worth.
- Budget-conscious drivers: PLPD is usually the cheapest way to stay insured.
- Safe or low-mileage drivers: If you drive less or have a clean driving record, you may face less risk.
- Drivers meeting state minimums: PLPD satisfies the legal requirements in most states.
However, if you have a newer car, a lease, or a car loan, your lender may require comprehensive and collision coverage, so PLPD alone won’t work.
How Much Does PLPD Insurance Cost?
The cost of PLPD insurance depends on your state, age, driving record, and car type. On average, it’s 40%–60% cheaper than full coverage.
For example:
- A driver with a clean record might pay $40–$80 per month for PLPD.
- Full coverage for the same driver could cost $120–$160 per month.
This cost difference makes PLPD a popular choice for affordable coverage.
PLPD Insurance vs. Full Coverage
Here’s how PLPD compares to full coverage auto insurance:
| Feature | PLPD Insurance | Full Coverage |
|---|---|---|
| Covers injuries to others | Yes | Yes |
| Covers damage to others’ property | Yes | Yes |
| Covers your car’s damage | No | Yes |
| Covers theft, fire, or weather | No | Yes |
| Typical monthly cost | Lower | Higher |
| Best for | Older or paid-off cars | New or financed cars |
If you drive a high-value or financed car, full coverage is often a better choice. For older cars, PLPD can save you money.
State Requirements for PLPD Insurance
Most U.S. states (except New Hampshire) require drivers to carry liability insurance. Minimum coverage limits vary, often shown as three numbers, like 25/50/20:
- $25,000 for bodily injury per person
- $50,000 total for bodily injury per accident
- $20,000 for property damage
These are minimums, not ideal amounts. A serious accident can cost more, leaving you to pay the difference. Choosing higher limits can offer better protection.
Benefits of PLPD Insurance
PLPD insurance has several advantages:
- Low cost: The cheapest way to stay legally insured.
- Meets legal requirements: Keeps you compliant with state laws.
- Simple: Easy to understand with no extra features.
- Flexible: You can switch to full coverage later if needed.
It’s a practical choice for drivers on a tight budget or with older cars.
Drawbacks of PLPD Insurance
PLPD has some limitations:
- No coverage for your car: You’ll pay for your own repairs.
- Limited protection: You’re responsible for costs above your policy limits.
- No coverage for theft or weather: You’ll need comprehensive coverage for those.
- Not for financed cars: Lenders usually require full coverage.
Weigh these risks against the savings before choosing PLPD.
Tips for Choosing a PLPD Policy
- Get multiple quotes: Prices differ between insurance companies.
- Check state minimums: Ensure your policy meets or exceeds local requirements.
- Consider higher limits: Protect yourself from big accident costs.
- Look for discounts: Ask about deals for safe drivers, students, or bundled policies.
- Review yearly: Adjust coverage as your car ages or your budget changes.
Final Thoughts
PLPD insurance is a simple, affordable way to meet legal driving requirements and protect against costs from injuring others or damaging their property. It’s great for older cars or drivers on a budget. However, think carefully about your car’s value, driving habits, and financial situation. Saving money now is helpful, but being underinsured in a major accident can cost more later.
By understanding PLPD and comparing policies, you can find the right balance between saving money and staying protected on the road.
