I keep hearing people mention PLPD insurance. What exactly is PLPD car insurance coverage?

PLPD stands for “Public Liability and Property Damage” - it was a term used in Michigan throughout the 1970s to refer to a “bare bones” policy. While this term was in active use, PLPD car insurance meant essentially the same thing as a “liability only” policy, which provided bodily injury and property damage protection for other drivers and passengers, but not for the policy owner.

Today, the meaning of PLPD car insurance coverage is somewhat different. Michigan has become a “no fault” state since the term was coined and now requires drivers to carry several types of personal injury protection coverage in addition to bodily injury and property damage liability. These personal injury protection coverages are designed to pay for the medical and rehabilitation costs of the policy owner and his or her passengers, regardless of who caused the accident.

When a Michigan driver refers to PLPD coverage today, the term usually means that the driver has satisfied the state's minimum insurance requirements for driving legally. This means that, if the driver causes an accident, he or she has the means to pay for injuries or property damage caused by the collision, subject to the state's required minimum limits.

A few other states use the term “PLPD car insurance coverage”, albeit not extensively. In Washington, for example, motor carrier drivers are required to carry PLPD coverage on any vehicle they use to transport household goods.