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No-Fault Act and Statutes

No-Fault Insurer May Seek Reimbursement for Payment of PPI Benefits

Attorney Commentary on No-Fault Statute: MCL 500.3127

Property protection insurance benefits; distribution of loss; reimbursement

Under certain, limited circumstances, No-Fault auto insurance companies can seek reimbursement for some or all of the money they pay out in property protection insurance (PPI) benefits as a result of auto accidents.

Those circumstances may include:

  • If two or more auto insurance companies are in the same order of priority to pay PPI benefits, then the insurer who ends up paying is entitled to seek partial recoupment from the insurer or insurers that didn’t pay “in order to accomplish equitable distribution of the loss among” all of the auto insurance companies in the same order of priority. (NOTE: MCL 500.3127 incorporates this requirement by referencing MCL 500.3115(2). However, subsection (2) of 3115 was eliminated with the new No-Fault law in Public Act 21 of 2019 which took effect June 11, 2019. Section 3127 has not yet been amended to reflect that change.)
  • If an injured person’s tort lawsuit results in a damage award that covers property damage, then the auto insurance company who paid the PPI benefits may be entitled to reimbursement from the injured person’s tort recovery.

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 policy, please call one of our experienced attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.

We are here to help you.