In an at-fault accident, whether with another driver or an inanimate object like a lamp pole, the accident was caused by your own error. Being negligent or at-fault in an accident makes you liable for the damages you caused. The personal liability portion of the insurance covers injuries that you cause to other people. The property damage portion covers damage to personal or public property caused by your vehicle. Personal injury and property damage insurance is fundamental coverage for all vehicle insurance policies. Alternate name: Bodily injury and property damage Acronym: PLPD
How Does Personal Liability and Property Damage Insurance Work?
Depending on the type of accident you are in and the damage it causes, you may need either or both parts of the coverage.
Personal Liability
Personal liability can also be referred to as bodily injury coverage. Personal liability can cover the injuries, lost wages, pain, and suffering of the drivers, passengers, or pedestrians caused by an accident in which you are at fault. Liability coverage is often written as a fraction, like 100,000/300,000, on your insurance policy. These are the maximum amounts of damage for which you are covered, commonly known as split limits. The first number is the maximum amount to be paid out per person. The second number is the maximum to be paid out per accident.
Property Damage
Property damage is included in all vehicle insurance policies. This coverage kicks in if you cause damage to property with your vehicle, such as:
Other vehiclesStreet signs or lamp postsBuildingsWalls or fencesMailboxes
The coverage is typically displayed as a third number after your personal liability coverage. It usually looks like a three-part fraction, such as 100,000/300,000/100,000. The last 100,000 is the property damage limit. This is how much your insurance company will pay out per accident in property damage claims.
How Much Does Personal Liability and Property Damage Insurance Cover?
How much your insurance company will cover if you cause an accident depends on two factors: If multiple people are injured in an accident, claims are paid out on a first-come, first-serve basis. This means whoever files a claim first has the first opportunity at being covered up to the stated limits. The maximums stated in your policy are the ceiling for what your insurance company will have to pay. If individuals suffer injuries worth more than the insurance coverage you have, they can also try to hold you accountable for more by taking you to civil court. For example, if you hit another vehicle with four people in it, all four people could sustain injuries. If your personal liability limits are 100,000/300,000 and each person in the other vehicle files a claim with your insurance company for $20,000, the total amount is less than $100,000 per person and $300,000 per accident. If, however, four people are more seriously injured and file claims for $100,000 each, plus the driver files a claim for $10,000 in property damage to their car, that exceeds your insurance coverage of $300,000 per accident. You could be sued and held personally responsible for the remaining damages that the injured parties were unable to collect from your insurance carrier.
How Much PLPD Coverage Do I Need?
Minimum mandatory coverage varies by state, and some states have different rules for out of state versus in-state accidents. When you buy a policy, talk to your insurance agent to ensure you have sufficient coverage for the state where you live. Limits for PLPD insurance of 100,000/300,000 are generally sufficient for most drivers. If you need or want higher limits, you can consider purchasing an umbrella policy.
