Definition of Public Liability and Property Damage (PLPD) Vehicle Insurance
When you are behind a wheel of a car there is always a risk that you may cause a crash and injure other road users and damage people’s property. Bodily injury and property damage liability vehicle insurance is arranged to cover those claims against you if the accident was your fault. Unfortunately, this policy does not cover your own injuries and losses.
Bodily injury part would meet any hospital costs, death benefits and funeral expenses of the third-party motorists, passengers and other people affected. The property damage part settles any losses to the cars, road rails, houses, fences and such.
Every motorist must at least buy this coverage to legally drive a car in the United States. It is commonly known as bare bones insurance because it covers the minimal legal requirements. But you can buy much more than the allowable minimums with a limited amount of increase in your cost.
These limits could be explained with an example. If your limits are 20/50/30, this means:
– Maximum bodily injury insurance payment per person could not exceed $20,000
– Maximum bodily injury insurance payment per accident could not exceed $50,000
– Maximum property damage insurance payment per accident could not exceed $30,000
Simply, the claimants will have to go after you for any loss that is not paid by your insurance. For that reason, it would be advisable to obtain ample coverage without much regard to minimum decided by your state.
You might want to buy personal injury protection (PIP) and collision insurance to cover your own hospital bills and monetary losses. In addition, in few states in America no fault is assigned to any party in a car incident and so everyone has to pay for their losses. As a result personal injury protection would be the legal condition in those no fault states.
In short, this cover is the key component of any car insurance. You would begin with this cover and add more coverage based on your risk profile and means.
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