What is Property Protection Insurance in Michigan?
In Michigan, Personal Protection Insurance (PPI) is one of the required types of auto insurance that state law mandates drivers to carry. There are three basic parts to a Michigan no-fault policy that must be purchased and carried on every vehicle. PPI is one of the three mandatory coverages, the other two are personal injury protection (PIP) and Residual bodily injury and property damage liability (BI/PD).
Property protection (PPI) provides protection if you cause damage to properly parked vehicles or fixed properties such as buildings or lampposts in the state of Michigan. Outside Michigan, your Property Damage Liability Insurance covers your legal liability for property damage.
Property protection insurance coverage pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings, poles and fences. This type of coverage will also pay for damage your car does to other people's properly parked vehicles. This is normally the only time a vehicle will be covered under PPI.
Usually if a vehicle is hit while on the roadway (not parked but while a vehicle is actually being driven) in Michigan the only recovery a person can receive from the offender is through the mini-tort provision of MI law which allows the not at-fault party to sue the at-fault party for up to $500. The other option is for the person to make a claim through their own collision coverage. If a driver chooses to use their own collision coverage then the person can still sue the at-fault party for up to the $500 mini-tort amount as a way to cover their collision deductible.