“PLPD” stands for Personal Liability and Property Damage insurance, and is sometimes referred to “Third Party Liability” or “Liability Only”. PLPD is the only car insurance coverage that is mandatory in all provinces in Canada to operate a motor vehicle on public roads. PLPD is broken down into two types of damages:
Personal Liability Coverage provides protection against the financial damages you may be legally responsible to pay if you cause injury or death to someone else in a car accident or claim.
Property Damage is just what it sounds like – it provides coverage for damage you cause to someone else’s property (house, lawn, belongings, car, etc.) during a car accident or claim.
While some people opt for “liability only” coverage to save money on car insurance premiums, it is important to note that this kind of coverage does not offer any protection to your own vehicle or help with your own medical injuries or bills caused by a car accident. You can learn more about basic car insurance coverages from our blog posts:
Car Insurance 101: Understanding Basic Coverages
Car Insurance 102: Liability Limits and Deductibles