In Michigan, if a car accident damages buildings or other structures on your property, a No-Fault insurance claim may help. Property Protection Insurance (PPI), included in every No-Fault policy, covers damage your vehicle causes to fences, garages, walls, and other structures like street signs and mailboxes, up to your policy limit. Understanding how PPI works can help you protect your property and navigate a claim after a crash.
Does a No-Fault insurance claim cover property damage after a car accident in Michigan?
In Michigan, No-Fault Property Protection Insurance (PPI) claim covers damage your vehicle causes to buildings or structures—like fences, garages, and walls—up to the policy limit in a car accident. It does not cover moving vehicles or your own car, which require collision coverage or recovery from the at-fault driver.
To cover damage to your own car or other moving vehicles, you need collision coverage on your policy or may be able to recover costs from the at-fault driver through liability or our state’s mini tort provision, which allows limited reimbursement for vehicle repairs when no collision coverage applies.
What type of damage is covered?
The damage to tangible property that covered by a claim consists of “physical injury to or destruction of the property and loss of use of the property so injured or destroyed.” (MCL 500.3121(3)) This includes
- Buildings and structures (fences, garages, walls, sheds)
- Properly parked vehicles
- Other property (mailboxes, lamp posts, landscaping)
Does this type of claim depend on fault?
A Michigan No-Fault car accident property damage claim may be filed under a driver’s auto insurance policy regardless of who was at-fault in causing the property. (MCL 500.3121(2)) PPI covers damage your vehicle causes to someone else’s tangible property—such as buildings, fences, or properly parked cars—regardless of who is at fault.
This means that, even if the person who is filing the property damage claim caused the motor vehicle accident because he was careless or irresponsible, as long as the damage was not done intentionally, he is still entitled to recover.
However, coverage for damage to your own car or moving vehicles generally does depend on fault: you would need collision coverage or to seek recovery from the at-fault driver through liability or our state’s mini-tort option.
Who do I file a No-Fault property damage claim against after a car accident?
First, the owner of the damaged property will file his or her claim against the auto insurance company for the owner of the car that caused the damage. Second, if recovery cannot be made with the former, the claim will be filed with the driver’s auto insurance company. (MCL 500.3125)
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How much will this a No-Fault car accident property damage claim pay?
The driver’s insurance company will pay “the lesser of reasonable repair costs or replacement costs less depreciation and, if applicable, the value of loss of use.” But the payout on the property damage claim will not exceed $1 million. (MCL 500.3121(5))
Importantly, if the driver was at-fault in causing the property damage, then the property owner may be able to sue the driver for “tort liability” for damages in “excess” of the $1 million limit up to $4 million when “liability insurance required by federal statute or regulation is in effect.” (MCL 500.3136(1) and (2)
What are the time limits for filing this type of claim?
In Michigan, the time limits for filing a No-Fault car accident property damage claim are governed by (MCL 500.3145(5)) and related statutes:
- Property Protection Insurance (PPI) claims:
- Generally, you must file a claim within 1 year of the date the accident occurred.
- Mini-tort claims (for damage to your own car when you don’t have collision coverage):
- Must be filed within 1 year after the accident, unless otherwise specified by your policy.
- Extended deadlines:
- In some cases, filing may be delayed if the property owner did not know the extent of the damage immediately, but courts typically require prompt notice to the insurer.
For these types claims, it’s best to notify your insurance company as soon as possible to avoid missing the statutory filing deadlines.
Need help your Michigan No-Fault car accident property damage claim? Call our attorneys now for a free consultation!
If your property was damaged in a crash in Michigan and you need help with your No-Fault claim, call now (800) 968-1001 for a free consultation with an experienced car accident lawyer. There is no cost or obligation. You can also visit our contact page or use the chat feature on our website.
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