COLLISION COVERAGE IN MICHIGAN:

PLPD VS. FULL COVERAGE WHAT YOU NEED TO KNOW ABOUT AUTO INSURANCE IN THE GREAT LAKES STATE

PLPD Vs Full Coverage Insurance

Are you confused about car insurance options in Michigan? You’re not alone! With recent changes to state laws and a variety of coverage choices, it can be overwhelming to figure out what type of auto insurance is right for you. This guide will break down everything you need to know about collision coverage, PLPD, and full coverage insurance in Michigan.

KEY TAKEAWAYS:

• Michigan requires all drivers to have auto insurance
• PLPD is the minimum required coverage
• Full coverage offers more protection but costs more
• Recent law changes have impacted insurance options

WHAT IS PLPD INSURANCE?

PLPD stands for Personal Liability and Property Damage. It’s the minimum required auto insurance coverage in Michigan. Here’s what PLPD typically includes:

• Bodily injury liability
• Property damage liability
• Personal injury protection (PIP)
• Property protection insurance (PPI)

BREAKING DOWN PLPD COVERAGE

Let’s look at each component of PLPD insurance in more detail –

BODILY INJURY LIABILITY:
This covers injuries you cause to others in an accident. As of 2024, the minimum required coverage is:

• $50,000 per person
• $100,000 per accident

PROPERTY DAMAGE LIABILITY:
This covers damage you cause to other people’s property. The minimum required coverage is:

• $10,000 per accident

PERSONAL INJURY PROTECTION (PIP):
This covers medical expenses for you and your passengers, regardless of who caused the accident. Michigan law now allows drivers to choose their PIP coverage level:

• Unlimited coverage (recommended)
• $500,000 coverage
• $250,000 coverage
• $250,000 coverage with exclusions
• $50,000 coverage (for Medicaid recipients)
• Opt-out (for those with Medicare)

PROPERTY PROTECTION INSURANCE (PPI):
This covers damage you cause to fixed objects like buildings or fences. The required coverage is:

• $1 million per accident

WHAT PLPD DOESN’T COVER

While PLPD meets the legal requirements, it has some significant limitations:

• PLPD doesn’t cover damage to your own vehicle
• PLPD doesn’t protect against theft or vandalism
• PLPD may not provide enough coverage for serious accidents

WHAT IS FULL COVERAGE AUTO INSURANCE?

“Full coverage” isn’t actually a specific type of insurance. Instead, it typically refers to a policy that includes:

• Everything in PLPD coverage
• Collision coverage
• Comprehensive coverage

COLLISION COVERAGE:

This pays for damage to your vehicle from accidents with other cars or objects, regardless of fault.COMPREHENSIVE COVERAGE:
This covers damage to your vehicle from non-collision events like:

• Theft
• Vandalism
• Falling objects
• Natural disasters

TYPES OF COLLISION COVERAGE IN MICHIGAN

Michigan offers three main types of collision coverage:

1. BROAD FORM COLLISION:

• You only pay the deductible if you’re at fault
• No deductible if you’re not at fault

2. STANDARD COLLISION:

• You pay the deductible regardless of fault

3. LIMITED COLLISION:

• Only covers accidents where you’re not at fault
• No coverage if you’re at fault

PLPD VS. FULL COVERAGE:

PROS AND CONS

PLPD PROS:

• Lower cost
• Meets legal requirements
• Good for older, less valuable cars

PLPD CONS:

• Limited protection
• No coverage for your own vehicle damage
• May not be enough for serious accidents

FULL COVERAGE PROS:

• More comprehensive protection
• Covers your vehicle damage
• Peace of mind for newer or financed cars

FULL COVERAGE CONS:

• Higher cost
• May be unnecessary for older, less valuable cars

RECENT CHANGES TO MICHIGAN AUTO INSURANCE LAWS

In 2019 and 2020, Michigan made significant changes to its auto insurance laws. Key updates include:

• Drivers can now choose their PIP coverage level
• Insurance companies must reduce PIP premiums
• New rules for coordinating health insurance with auto insurance

HOW MUCH DOES AUTO INSURANCE COST IN MICHIGAN?

Michigan has historically had some of the highest auto insurance rates in the country. However, recent law changes aim to reduce costs. As of 2024:

• The average cost of PLPD insurance in Michigan is about $930 per year
• Full coverage costs an average of $2,385 per year with a $1,000 deductible

Factors that affect your insurance rates

• Your driving record
• Your age and gender
• Where you live
• The type of car you drive
• Your credit score

FREQUENTLY ASKED QUESTIONS

Q: Do I need full coverage if I have an older car?

A: It depends. If your car’s value is low, the cost of full coverage might outweigh the potential benefits. Consider the car’s value and your ability to replace it if it’s totaled.

Q: Can I switch between PLPD and full coverage?

A: Yes, you can change your coverage at any time. However, if you have a car loan, your lender may require full coverage.

Q: What happens if I only have PLPD and my car is damaged?

A: If you’re at fault, you’ll have to pay for your own car repairs out of pocket. If another driver is at fault, you may be able to claim up to $3,000 under Michigan’s mini-tort law.

Q: Is PLPD the same as liability insurance?

A: In Michigan, PLPD is similar to what other states call liability insurance, but it also includes PIP and PPI coverage.

Q: How do I choose between PLPD and full coverage?

A: Consider factors like your car’s value, your budget, and your risk tolerance. If you can’t afford to replace your car, full coverage might be worth the extra cost.

TIPS FOR CHOOSING THE RIGHT AUTO INSURANCE

1. ASSESS YOUR NEEDS:
   Consider your car’s value, your budget, and your risk tolerance.
2. COMPARE QUOTES:
   Get quotes from multiple insurance companies to find the best rates.
3. LOOK FOR DISCOUNTS:
   Many insurers offer discounts for things like safe driving, multiple policies, or safety features on your car.
4. UNDERSTAND YOUR POLICY:
   Make sure you know exactly what’s covered and what isn’t.
5. REVIEW ANNUALLY:
   Your insurance needs may change over time, so review your policy each year.

RELEVANT MICHIGAN STATUTES

• MCL 500.3101: Requires all Michigan drivers to have auto insurance
• MCL 500.3009: Sets minimum liability coverage requirements
• MCL 500.3107: Defines personal injury protection benefits
• MCL 500.3135: Outlines tort liability for noneconomic loss

CONCLUSION

Choosing between PLPD and full coverage auto insurance in Michigan depends on your individual circumstances. While PLPD meets the legal requirements, full coverage offers more protection at a higher cost. Recent law changes have given Michigan drivers more options, but also more decisions to make.

Remember, the cheapest insurance isn’t always the best. Consider your needs carefully and don’t hesitate to ask questions or seek professional advice. Your auto insurance is a crucial financial protection – make sure you have the insurance coverage that’s right for you.

With six office locations and a dedicated team of four experienced attorneys, our firm is equipped to handle even the toughest legal battles. Jason Waechter, recognized as a Super Lawyer®, a Top 100 Trial Lawyer, and a proud member of the Million Dollar Advocates Forum, brings nationally acknowledged expertise to every case. Don’t let the insurance companies push you around—get the representation you deserve. Call 877-POWER-LAW today for a free consultation. We’re committed to securing the full recovery you need—physically and financially.