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No-Fault Act and Statutes

PPI insurance (Property Protection Insurance)

PPI insurance, which is also called property protection insurance, is one of the mandatory coverages that all drivers must carry as required by Michigan’s No-Fault auto insurance law. It covers the cost of damage to tangible property resulting from a car accident.

What is property protection insurance?

Property protection insurance, which is also called PPI insurance, is a required auto insurance coverage under Michigan’s No-Fault law. It covers accidental damage to another person’s tangible property resulting from a car accident. A claim is filed with the insurer for the owner or driver of the car.

What does PPI insurance cover?

The damage to tangible property that is covered by PPI insurance 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))

What types of property are covered by PPI insurance?

Property protection insurance will cover car accident-related damage to property such as safely parked cars, fences or trees.

Importantly, PPI insurance will not cover car accident-related damage to a vehicles, their contents or trailers if they are “parked in a manner” that causes “unreasonable risk of the damage which occurred. (MCL 500.3123(1)(a))

Similarly, PPI insurance will not cover “property damage to utility transmission lines, wires, or cables arising from the failure of a municipality, utility company, or cable television company.” (MCL 500.3123(3))

Will property protection insurance cover out-of-state car accidents?

No. Property protection insurance will not pay to cover “property damage arising from motor vehicle accidents occurring outside the state.” (MCL 500.3123(2))

Does PPI insurance coverage depend on fault?

No. PPI insurance provides coverage for damage to tangible property resulting from a car accident regardless of who was at-fault in causing the property damage. (MCL 500.3121(2))

What is a PPI insurance claim?

A PPI insurance claim is a claim for coverage of damage to tangible property resulting from a car accident. The claim will be filed with the auto insurance company for the owner or driver of the vehicle involved in the accident.

How to claim PPI insurance?

The owner of the damaged property will file a claim with the auto insurance company for the owner of the car that was involved in the car accident that caused the property damage. However, if recovery cannot be made, the claim will be filed with the insurer of the driver of the involved vehicle. (MCL 500.3125)

Can you claim PPI on car insurance?

Yes. PPI insurance is a form of car insurance. It is required coverage for all drivers in Michigan under the state’s No-Fault auto insurance law.

How much will PPI insurance pay?

The driver’s property protection insurance 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 PPI insurance claim will not exceed $1 million. (MCL 500.3121(5))

Importantly, if the driver of the vehicle involved 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)

Time for filing a PPI insurance claim?

A property owner cannot sue on a PPI insurance or property protection insurance claim “later than 1 year after the accident.” (MCL 500.3145(5))

Importantly, if you are forced to file a lawsuit for PPI insurance benefits, you must name the auto insurance company for the involved vehicle’s owner and/or driver as the defendant because the actual responsible party in a property protection insurance claim is the owner’s or driver’s auto insurer.

If you fail to name the owner’s or driver’s auto insurance company as the defendant in your suit for unpaid PPI insurance benefits and instead you only name the driver and/or owner of the car as the defendants, and the one year statute of limitations expires, you will not be able to name the insurer to the lawsuit at a later date.

Is gap insurance PPI?

PPI insurance or property protection insurance is not gap insurance.

Injured and need a lawyer? Call Michigan Auto Law

If you have been injured in a car accident and you have questions about your legal rights, you can call toll free anytime 24/7 at (800) 777-0028 for a free consultation with one of our experienced auto accident attorneys. You can also get help from an experienced attorney by emailing [email protected] or you can use the chat feature on our website.

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