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Property Damage That Is Not Covered By No-Fault Insurance

Attorney Commentary on No-Fault Statute: MCL 500.3123

Property protection insurance; property excluded: territorial limitation

There are certain situations where property protection insurance benefits (PPI) are not available to compensate an individual for property damage that occurred because of a motor vehicle accident such as a car or truck accident:

Parked Vehicles that Cause “Unreasonable Risk of Damage”

A vehicle must be parked in a safe manner in order for PPI benefits to be available. If a vehicle is parked in a way that causes an “unreasonable risk of damage,” the no-fault insurer is not obligated to pay PPI benefits. This exclusion extends beyond motor vehicles to trailers and the contents of trailers as well.

Property Damage Caused by Members of Claimant’s Household

If damage to an individual’s vehicle is caused by the individual, the person’s spouse or relative that lives in the same household, PPI benefits are not available. For example, in one well-known case, a man’s house was damaged when an automobile owned and insured by his son caught on fire while it was being repaired in the man’s garage. The Michigan Court of Appeals decided that the “household exclusion” prevented the man from receiving PPI benefits from his insurer. American States v. DAIIE, (1982).

Out-of-State Accidents

PPI benefits are not available where the damage to a motor vehicle occurs in an accident outside of Michigan. For example, if a Michigan resident is driving his car in Illinois and he is involved in a collision, his no-fault insurer is not obligated to pay PPI benefits. This exclusion also applies to rental cars. If a Michigan resident rents a car which is damaged in a motor vehicle accident, his no-fault insurer does not have to pay PPI benefits

Damage to Utility Lines, Wires and Cables

If a motor vehicle causes property damage to equipment like “utility transmission lines, wires or cables” and the damage occurs because the owner of the equipment, such as a cable company, did not maintain it properly according to Michigan law, then PPI benefits are not available to compensate for this damage.

No-Fault Insurance Attorneys of Michigan Auto Law

The lawyers of Michigan Auto Law have been specializing in automobile no-fault litigation for more than 50 years. If you have been injured in a car, truck or motorcycle accident and need help navigating through your no-fault insurance, please call one of our expert attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.

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