What Is PLPD No-Fault Insurance?


Certain states, such as Michigan and Florida, require drivers to carry no-fault car insurance that covers a few basic damages that are generally associated with car accidents -- usually medical costs and property damage. Consumers often use the acronym PLPD when referring to the basic coverage required by law.


PLPD refers to the basic automobile policy required by no-fault insurance states. According to CarInsurance.com, the acronym refers to an outdated type of insurance originally used in Michigan known as public liability and property damage. When a driver carries PLPD insurance, she has the minimum coverage required by law. Such a policy generally covers medical costs and damage done to another individual's property up to certain limits.

No-Fault Coverage

No-fault insurance policies generally do not use PLPD when referring to the type of coverage offered under the most basic policy required by law. Instead, bodily injury protection (BIP/PD) or personal injury protection (PIP/BD) and property damage are more commonly used terms. The extent of this coverage varies by state. Bodily injury protection covers medical costs up to a certain amount. In Michigan, for example, the policy pays all “necessary” medical costs and a portion of the driver’s lost wages up to a certain policy amount. Likewise, property damage protection covers a predetermined amount. In Michigan, the basic policy covers up to $1 million for damage done to another person’s property. However, it does not cover the cost of vehicle repairs.

Residual Bodily Injury and Property Damage Liability

No-fault insurance states like Michigan prevent drivers from being sued in most situations; instead, drivers must look to their insurance carriers for recovery. There are certain exceptions, such as when a person is killed or seriously injured. In these circumstances, a no-fault policy may contain residual protections. In Michigan, if a driver causes an accident and someone is hurt or killed, and that driver is subsequently sued for damages, the policy will cover up to $20,000 (or $40,000 if more than one person was killed or injured). In this case the driver would be responsible for paying for anything above and beyond the residual policy limit.

Purchasing Additional Coverage

Drivers should check their state laws regarding car insurance policies in order to determine the appropriate amount of coverage. Even in states with no-fault insurance coverage, drivers can purchase additional coverage beyond the basic, or PLPD, coverage. For example, drivers can purchase coverage for auto repairs or increase the policy limitations for the residual coverage amount.

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