You may be able to obtain only PLPD, a basic liability auto insurance policy, on a brand new vehicle if you own it fully, meaning without any type of lease or loan attached to it.

If you do have a lien holder then they will most certainly require you to not only have PLPD on the vehicle but also physical damage coverages of collision and comprehensive so that their asset, the vehicle, is covered if damaged.

If you have purchased a brand new 2007 vehicle then normally you would want more than just the state mandated minimum coverages since they would not cover your vehicle if you were at fault in an accident. Or if you are in Michigan, where the term PLPD is most often used to refer to basic liability coverages, then without collision and comprehensive coverages your car would not really be covered even if you were not at fault, except if it was legally parked when hit.

In Michigan the required Property Protection Insurance covers property such as fences, houses, etc but not cars unless they were legally parked when hit. So even if you were not at fault in this state you could only collect from the at fault party if your car was parked or you can sue for the mini-tort amount which is only $500 and basically meant to cover your collision deductible.

The Michigan insurance regulator notes that if your car is properly parked and hit by another car, the other driver's insurance will pay for your repairs as we mentioned above. Except for this situation, the only kinds of auto insurance that pay for repairs to your car are collision and comprehensive coverage. So to properly cover your brand new car then you would want these physical damage coverages.

If you live in another state then you may be able to go against a person's property damage liability policy if they cause damage to your car, however being a new car their limits may not cover your actual cash value if the car is totaled out. So even if you do not have a lien holder that requires you to have physical coverages on your vehicle normally one would want these coverages to protect their new car.

If you do have a lien holder you would probably be required to have collision and comprehensive and may also want to obtain GAP insurance that would cover the balance of your loan (after your primary insurer pays ACV) if your car is totaled and you are upside down on the loan, meaning you owe more then the car is worth. To get a car insurance quote for your new vehicle from an auto insurance specialist click here.