Whenever you’re driving, you’re going to need car insurance. Some types of car insurance are mandatory, while others are not. Despite this, having certain types of car insurance can be helpful if you get into an accident because of the coverage they provide. That’s where personal liability and property damage car insurance coverage can help you out. PLPD stands for personality liability and property damage insurance. What does it cover, and when does it come into effect? We’re going to help you find out.
BrokerLink has created a guide with everything you need to know about PLPD insurance. Although the words are abbreviated, they can do a lot more than you think if you get into a car accident. You should be aware that this policy is also mandatory. It’s illegal to drive without this type of insurance coverage that includes everything you need to be safe on the road. Let’s dive into the exciting world of car insurance!
What you need to know about personal liability and property damage insurance
First off, let’s provide a quick definition of the mandatory PLPD car insurance. If you are considered at-fault for a car accident, this coverage will come into effect. This car insurance policy covers two main aspects. The first part of your coverage will compensate for medical bills if they get injured as a result of the accident. Next up, there’s property damage, which will assist in paying for repairs and replacement of the driver’s vehicle.
The best part about PLPD car insurance is that it includes everything you will need if you get into a car accident. When you choose it, the four types of mandatory car insurance policies are included. With that said, let’s get into each one and talk about how they can help you out if you get into an accident:
Third party liability coverage
In Canada, third party liability car insurance coverage is mandatory. What is it? This insurance policy covers important expenses if you get into an at fault car accident. Essentially, it will help pay for medical expenses or property damage caused by the car accident. This includes damage to the other driver or their vehicle, which can prevent an expensive lawsuit.
Direct compensation coverage
As mentioned earlier, having car insurance will assist you if you get into a car accident. This is true even if you are not at fault. The direct compensation portion of your policy will compensate you directly if your vehicle is damaged as a result of a car accident. However, in order for this coverage to come into effect, the other driver has to be at-fault.
Accident benefits coverage
Sometimes, determining who’s at fault for an automobile accident isn’t all black and white. Regardless of if one person decides to take the blame, accident benefits coverage will help you if an injury affects your financial situation. For example, if you’re hurt in a car accident and bodily injury prevents you from working. You will be compensated for lost wages and if you have to pay a caregiver.
Uninsured automobile coverage
An uninsured driver can be dangerous on the road because if they get into an accident, they likely don’t have a way to pay for the damages. Uninsured automobile insurance is legally required because if you are hit by an uninsured driver or involved in a hit-and-run accident, you would otherwise have to pay for all your expenses out of pocket.
Between potential medical bills and lost wages, having a personal liability and property damage insurance policy is important. Motor vehicles are often unpredictable, which is why you’ll need a full coverage insurance policy like this one to help you out. Although PLPD coverage has benefits when you use it on your own, you can protect yourself further by looking into optional types of insurance coverage.
Optional car insurance policies
PLPD insurance coverage is great on its own. However, you can choose to opt into additional types of car insurance. It’s something to think about because even with the mandatory insurance policies in place, you might get into an accident where not everything is covered. Here are the other types of personal liability and property damage insurance available.
Collision coverage
If you get into an at-fault accident, collision coverage can assist you. It will pay for repairs to your vehicle if you hit another vehicle or stationary object. If the damage is bad enough, your vehicle can be written off after an accident. When this occurs, collision coverage will pay for the replacement costs. The only reason people opt out of this policy is they have an older vehicle or one that’s affordable to replace.
Comprehensive coverage
Your vehicle is vulnerable to damage in more ways than one. Comprehensive coverage can assist if your vehicle gets damaged due to something other than an accident. For example, if you hit a deer, a deer or another animal hits you, someone breaks into your car, it gets vandalized, or damaged by a weather event like a hail or wind storm, comprehensive coverage has you covered. Additionally, if someone steals your vehicle, comprehensive coverage will pay for the replacement costs.
PLPD insurance can be helpful. However, you will need the right insurance policy for your business or personal vehicle. Adding these additional types of coverage to your insurance policy can be helpful, but that begs the question, “Do I need these if I already have PLPD insurance?” That’s an interesting debate and the answer and we’ll get into it more in the next section.
Deciding if you need all these types of coverage
Let’s settle this debate once and for all. Do you need collision and comprehensive coverage if you already have PLPD car insurance? The answer may vary from person to person. Why is this, and what does it mean? Let’s talk about it:
When to drop these types of coverage
Let’s start off by stating the obvious — not using these optional types of car insurance policies will lower your insurance premiums. When does it make sense to do this? If your motor vehicle is over ten years old and is not considered a classic or collector vehicle, you can save money on personal liability and property damage coverage. When this is the case, the costs of your premiums are probably higher than the amount you would receive from a claim after an accident.
When to keep optional coverage policies
In contrast, you take a risk when you only have personal liability and property damage coverage. That’s because you might have to pay for certain expenses out of pocket if you get into a car accident. This will be the case if a car accident totals your vehicles, which can be pricey if you’ve recently bought a new vehicle. That’s why it’s important to know that different types of insurance coverage have limitations.
Most people don’t know the minimum amount that their insurance company will pay out after an accident. This matters because this amount covers damages to your vehicle and that of other drivers. Additionally, each policy will cover things related to different types of accidents. Now that we’ve established whether or not you’ll need optional types of insurance coverage to supplement your car insurance, let’s find out who can benefit from PLPD coverage.
Uses for PLPD insurance coverage
PLPD insurance coverage is mandatory, and it’s against the law not to have it. However, more than one group can benefit from having this policy. In other words, it’s not your basic type of insurance coverage. Let's discuss the benefits of PLPD insurance coverage below:
Personal use
Although it’s right in the title, if you’re driving your personal vehicle on the road, you have to have this type of personal liability coverage. If you get into an accident on the road, you can benefit from this policy, which includes all the mandatory policies you need to drive. Ask your insurer how you can combine this policy with optional ones for additional protection.
Commercial use
If you run a business where you’ll be delivering your products to customers, you will need to insure your vehicle. Whether you have a single van or a fleet of cars, you need to ensure you are protected in the event of an accident. However, it’s important to note that fleet insurance requirements will often vary from province to province.
PLPD insurance coverage can be beneficial for regular drivers and business owners. Like certain types of car insurance policies, it’s important and mandatory to have. You should keep this in mind before hitting the road because otherwise, you will be stuck paying out of pocket for certain damages and face serious penalties for driving uninsured. Next, we will discuss how to get this type of insurance coverage.
Getting PLPD insurance coverage
Before getting personal liability and property damage coverage, you will need to follow a few key steps. Your insurance company will ask you for a couple of important details before taking you on as a client. With that said, let’s find out more about what your insurance company needs:
A bit about you
You will need to provide your car insurance companies with a few details about you. This will often include your name, address, date of birth and occupation. In some provinces, insurance companies will ask for your credit history to determine if you are eligible for coverage. However, your best bet is to ask your insurance company or broker directly about what you will need.
Vehicle info
Insurers will also ask you for the make, model, trim, year, and mileage of the vehicle you want to insure. Another important part of this is your vehicle information (VIN). You can find it on your car’s registration papers, close to the windshield or on a sticker inside the driver’s door. Things are also different if you are financing or leasing a vehicle. You will need to let your insurance company know who you are getting a loan from so they can send proof of car insurance coverage.
Driving record
Your driving history is also an integral part of getting insured. Your insurance company will want to know how long you’ve been driving and if you have had any violations or accidents in recent years. Having a clean driving record can pay off. Insurers will often offer discounts to those with clean driving records. In contrast, infractions can increase your insurance premiums.
Previous insurance
Not maintaining continuous insurance coverage can cost you in the long run. If you haven’t maintained a consistent record of insurance coverage, you will have higher premiums. That’s one of the main reasons behind insurers asking who you had insurance with in the past, how long it lasted and the amount of coverage you had. Having a good insurance history can be beneficial.
Getting PLPD insurance coverage is helpful because it assists in paying for vehicle damage and medical bills. However, you have to take the necessary steps to get insured to legally drive on the road and get proper insurance coverage. It will help you cover expenses for an accident caused by you or another driver. Even though it’s mandatory, it’s still important to know what your insurance policy covers.
Get the insurance coverage you need from BrokerLink!
You should never underestimate the importance of risk management. This matters, especially when you’re choosing a PLPD insurance policy. If your vehicle isn’t exclusively for personal use, you should also know how to insure business vehicles. Asking an experienced insurance broker for help is often the best way to go.
The team at BrokerLink is here for you. We can assist you whether you’re wondering about home insurance vs. homeowners insurance or business insurance in Ontario. Having a knowledgeable professional by your side is the key to understanding the complex world of insurance.
Whether you’re on the hunt for car insurance or home business insurance, BrokerLink has you covered. Our team of brokers understands how to match you with the right insurance company that will provide you with the coverage you need to stay safe on the road. You can also protect your home with high-value home insurance coverage. Contact us today for a free consultation and to learn more about PLPD insurance!
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