Save Money by Switching to PLPD Insurance

PLPD refers to public liability and property damage. You can save an average of $480 a year by dropping comprehensive and collision coverage.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Oct 19, 2021

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Things to Remember...

  • PLPD refers to public liability and property damage
  • This is the type of car insurance that pays for injuries and property damage you cause to others
  • When you’re getting insurance quotes, run the numbers both ways and see for yourself, comprehensive and just liability to cover property damage and other drivers and their passengers

Unless you’re one of those people who buy brand new cars with cash, you may be better off switching to PLPD insurance as soon as you can. PLPD insurance can save you money.

This is the type of auto insurance that pays for damage you cause to others.

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If you drive an older vehicle, it may make sense to drop your other coverage options and only cover public liability and property damage insurance.

We know, your insurance agent disagrees with this.

Of course, they do. Their commission is based on a percentage of the premiums you pay. So for them, the more you pay, the better. Here are some things to consider while you’re browsing through online insurance quotes:

Is PLPD Insurance Cheaper?

Most people already know this, but it is worth saying anyway. Unless you like giving your money away, you probably don’t need to be convinced that, all else being equal, less expensive is better.

If your main goal is to find cheap car insurance, then carrying only liability is the way to go. It also won’t do you any good to be loyal to a specific insurance company if you’re looking to save as much as possible on your insurance policy.

This coverage only applies if the other driver sustains an injury in the accident. It also includes property damage coverage for that other driver as well.

You must understand that this will not cover damage to you or property damage to your vehicle. PLPD meets state auto insurance guidelines that cover the other driver. Thus it meets your minimum obligation.

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But What About Replacement Value?

The replacement value of your car is probably not what you think it is. We know the car is valuable to you. We also know that you’re probably not in a position to pay cash to replace it.

But the fact is that the insurance payout probably won’t replace it after the adjusters are done anyway.

The value of your car is figured on its current Blue Book value, not the purchase price. Once you find out what this is, you can really crunch the numbers.

Also, talk to a mechanic about what you are likely to pay in repair costs for your vehicle. You may be relieved to find out that dropping that extra collision coverage makes sense all around.


When Does PLPD Make Sense?

If you put aside the difference between what you pay for full coverage and what you would pay for PLPD, you may end up ahead. Of course, this assumes that you won’t total your car or sustain an injury in an accident.

You must decide if cheap auto insurance or more comprehensive coverage is your priority.

While you do need to consider the possibility that you would need to replace your car if you have PLPD insurance and total it, you should also consider the fact that the numbers are in your favor on this one.

Chances are, you can save enough to buy a car, or at least put a hefty down payment on one before you get into an accident. It is important to carefully consider the cost of replacing your car before you dive in. You may also have an accident and then be responsible for an unexpected medical expense because this type of insurance won’t include any personal injury protection.

What Are Some Reasons You May Opt for More Coverage?

Of course, there are plenty of valid reasons to continue with full coverage:

  • If you live in an area where auto theft is common, it’s not a bad idea to keep your car insured against theft.
  • If you’re prone to accidents, you might not want to be without full coverage.
  • If you have a lien on your vehicle your lender will require collision and comprehensive insurance. In this case, carrying property damage insurance only is not an option.
  • If you can afford full coverage it may make sense to have things like uninsured motorist and GAP coverage.

Barring that, though, the amount of money you save by switching to PLPD is enough that it’s silly for most people to continue full coverage on a vehicle that is five years old or older because repair and replacement won’t cost as much as they think it will.

Don’t take our word for it, though.

When you’re getting auto insurance quotes, run the numbers both ways and see for yourself. It’s up to you to compare types of coverage and determine what kind of auto insurance coverage you may need.

Imagine all that extra money back in your hands or, better yet, drawing interest in a savings account. We think you’ll agree that if your car is paid off, it’s silly to pay more for insurance.

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