• Using PLPD Car Insurance To Your Advantage

    Many states have been requiring some type of PLPD car insurance coverage for many years now. PLPD car insurance is the acronym commonly associated with Personal Liability and Property Damage car insurance. Some people also refer to PLPD car insurance as basic liability car insurance coverage or bare bones car insurance. Generally speaking, this is the most basic type of car insurance coverage, and is the kind that is required by law in every state.

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    When compared to higher cost full coverage or comprehensive collision car insurance policies, the PLPD car insurance is often as much as 70-80 percent cheaper in terms of annual premium rates. If you only need to insure a vehicle for a relatively short period of time, PLPD car insurance is usually a lot more affordable than a comprehensive collision policy which will usually require a longer minimum coverage period.

    Qualifications for PLPD Car Insurance Coverage

    Generally speaking, there is only one basic requirement for purchasing a PLPD insurance policy: you must own your vehicle outright and not have a lien holder, such as a bank or a car loan lender, on the title. The reason for this is simple—if you are still making payments on your vehicle, the lien holder wants to be sure that they receive as much money as possible in the event that you wreck the car. So, virtually all car loan contracts prohibit you from purchasing PLPD car insurance coverage for as long as you’re still making payments on the vehicle.

    Other requirements for PLPD car insurance are very similar to other types of car insurance coverage. You must be a licensed driver with a valid driver’s license for the state in which you reside in, and you must have a valid Social Security number before a coverage policy will be issued to you. Also, your personal driving record must reflect that you’re eligible for standard types of car insurance coverage and are not required to use an assigned risk type of policy.

    Best for Older Cars

    When insuring an older vehicle (that is not a great deal of money), purchasing a comprehensive collision insurance policy may require you to pay insurance payments that can quickly cost you more than the vehicle is actually worth. So, choosing only basic liability coverage such as the PLPD insurance coverage can help you reduce the operating cost of an older vehicle.

    PLPD car insurance policies are all that are required under state law. Purchasing a PLPD car insurance policy will help you make sure that you always meet your state’s minimum insurance requirements for operating a vehicle on state roads and highways.

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    A PLPD car insurance policy will not cover cost for damage to your vehicle. So, if you are involved in a car accident, your car insurance will not pay to make repairs or replace your vehicle in the event that it is totaled.

    Not Available with Car Loans

    If you are still making payments on your vehicle, you will not be able to purchase a PLPD car insurance policy. When you signed the loan contract for your car loan, you also certainly agreed to maintain comprehensive collision insurance on your vehicle for as long as you are making payments. So, you are not legally entitled to purchase the PLPD because you don’t actually own the vehicle. If you do find a company that will you issue you a policy, the car loan lender will probably purchase a full coverage policy and pass the costs of the policy on to you.

    Limited Coverage Increases Your Liability

    Most PLPD car insurance policies offer only minimum amounts of liability coverage. So, if you’re involved in a major car accident and are found to be at fault, your insurance policy may not provide enough coverage to adequately pay medical expenses or property damage costs for others involved in the accident. If your insurance policy does not adequately pay all of the costs, injured parties may seek to see you in a civil court and you may be found personally liable for damages.

    Compare Multiple Insurance Companies

    You can use websites like CarInsurance.com and AutoInsuranceRates.com to compare premium rates and request policy rate quotes from multiple car insurance companies. In order to use these websites, you will simply need to enter your name, contact information, information about your personal driving record and information about the type of car you want to insure. Once you enter all the required information, these websites will submit your quote request to multiple insurance companies. Many times, you will receive rate quotes in as little as an hour, but in some cases it may take a day or two to receive all of the premium rate quotes.

    Once you receive the rate quotes, you can then compare policy premium prices as well as the policy limits for legally required bodily injury coverage and property damage coverage. You should also make sure that all quoted premium prices show the same amount dollar deductible and contain the same policy limits.

    Contact Your Homeowner’s Insurance Company

    If you own a home and have homeowner’s insurance, you should contact your homeowner’s insurance agent and ask him/her if the company offers car insurance as well. Many major insurance companies offer all types of insurance and offer policies for homeowner’s insurance as well as car insurance policies. You can save a lot of money by purchasing both types of policies from a single insurance company. Most insurance companies offer multi-line discounts of up to of between 15-30 percent to customers that purchase two or more types of policy coverage from them.

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    While you are asking your homeowner’s insurance agent about car insurance coverage, also ask him/her about an umbrella liability policy as well. In some cases, you will be able to add an umbrella liability policy that will provide you with very high amounts of liability coverage. Generally speaking, this type of coverage may be cheaper than increasing your policy limits on PLPD car insurance coverage. If it is, you can reduce the policy limits on your PLPD car insurance coverage to get lower car insurance premiums.

    Take a Certified Driving Course

    Even if it has been years since you graduated high school or college, you may still be able to receive substantial car insurance discounts by taking a defensive driving course or completing a safe driver instruction class or course. Many private driving schools now offer certified defensive driving courses and other safe driver courses that can help you receive discounts on your car insurance. You should contact your car insurance agent to find out which schools in your area can offer you courses that will lead to a discount on your car insurance.