What Is Property Protection Insurance for Cars?

Property protection insurance is a unique part of Michigan’s no-fault auto insurance system. It covers damage your car causes to another person’s property. And it only applies when you drive within the Great Lakes State. For example, if your car accidentally hits a mailbox or a garage, your insurance policy will pay for the damages up to $1 million.

Unlike other states, Michigan requires this coverage by law. It protects both drivers and property owners regardless of fault. So, no one has to worry about who caused the accident. Let’s learn more about this special kind of coverage!

Why Is PPI Only Required in Michigan?

Michigan stands out because it follows a no-fault insurance system, unlike most other states. Under this system, each driver’s insurance policy pays for their own losses, no matter who caused the accident. That’s where property protection insurance comes in.

PPI was created to protect property owners when vehicles cause damage within Michigan. It covers fixed objects like buildings, fences, or parked cars up to $1 million, without arguing over fault. Other states rely on liability insurance instead, which requires proving who’s responsible.

The Michigan Department of Insurance and Financial Services enforces the $1 million PPI requirement for every driver to ensure they receive benefits and compensation without unnecessary hassle. In short, Michigan’s no-fault system is designed to simplify claims and ensure that everyone's property is protected fairly and promptly.

What Does Property Protection Insurance (PPI) Cover for Cars?

Property Protection Insurance protects you when your car damages someone else’s property within Michigan. It’s designed to cover tangible property, which means anything physical that can be damaged or destroyed. The goal of PPI is to help pay for repairs or replacement without lengthy disputes about who was at fault.

Here's what PPI coverage usually includes: 

• Damages to fixed property. It covers things like buildings, fences, trees, signs, or mailboxes that your car hits.
• Damage to parked vehicles. If you accidentally collide with a properly parked car, property protection insurance (PPI) pays for the repairs. 
• Loss of use. It helps pay rental costs when a safely parked vehicle is damaged and temporarily undrivable.

It’s crucial to note that your policy coverage limit is $1 million, which means it will pay up to $1 million for eligible property damage. If you need reliable and budget-friendly auto insurance for your vehicle in Michigan, contact USA Auto today. We help high-risk and everyday drivers with same-day car insurance coverage. Call us at (866) 855-1872 or get your auto insurance quote online.

What Does PPI Not Cover?

PPI is mandatory in Michigan and protects both property owners and drivers when an accident damages physical structures or legally parked vehicles. However, there are a few things that PPI doesn’t cover, and you should be aware of these exclusions to avoid any false hope.

Here's what PPI (property protection insurance) won’t cover: 

• Your own vehicle’s damage. You’ll need collision auto insurance for repairs to your own car. 
• Moving vehicles. If you hit a car that was moving, your liability auto insurance will apply, not PPI. 
• Out-of-state accidents: Property protection insurance only applies to damage within Michigan. 
• Unreasonably parked cars. If your vehicle was parked in an appropriate way, which caused the accident, you’re not covered.  
• Vehicle contents or trailers. Damage to items inside vehicles or attached trailers isn’t included. 
• Bodily injury. PPI won’t cover physical injuries, either for you or others, resulting from the accident. For that, you’ll need personal injury protection.  
• Utility lines or equipment. PPI doesn’t cover property damage to things like power lines or cables.

In simple words, PPI mainly focuses on covering fixed property and safely parked vehicles. For everything else, you’ll need other parts of your auto insurance policy to fill the gaps. 

Property Protection Insurance Vs. Property Damage Insurance 

Property Protection Insurance (PPI) and Property Damage (PD) Liability Insurance are both legally required in Michigan. However, each serves a different purpose. PD liability insurance coverage only applies to accidents that occur outside of Michigan. In terms of coverage location, PD is the opposite of PPI, which only applies within Michigan. Regarding coverage limits, drivers must carry a minimum of $10,000 in property damage liability, whereas PPI has a $1 million limit. 

Here's a simple comparison:

How Much PPI Is Required?

Michigan laws require all drivers to carry $1 million in property protection insurance. However, to fully comply with state-mandated auto insurance requirements, you also need the following minimum coverage along with PPI: 

• $20,000 bodily injury liability per person 
• $40,000 bodily injury liability per accident 
• $10,000 property damage liability per accident (For out-of-state car accident) 
• Unlimited personal injury protection (PIP) 
• $1,000,000 property protection insurance (PPI)

Michigan is one of the most expensive states for auto insurance due to its extensive insurance coverage requirements. In fact, on average, Michigan drivers pay 12% more than the national average for maintaining minimum car insurance.

How Do I Make a PPI Claim in Michigan?

Filing a PPI claim in Michigan is really easy if you know who to contact. This coverage is part of your auto insurance policy, and it’s meant to pay for property damage your car causes to others in Michigan.

Here’s how to do it step by step:

1. Identify the insurer. The owner of the damaged property files the claim with the insurance company of the vehicle that caused the damage.
2. Provide details. Share accident information, including date, location, photos, and what was damaged (like a fence, building, or parked car). 
3. Wait for inspection. The insurer may inspect the property or vehicle to confirm the damage.
4. Get payment. The insurer pays the repair or replacement costs, subtracting depreciation, up to $1 million.

It’s worth noting that the claim must be filed within one year of the accident. If the car that caused the damage is uninsured, the property owner can file the claim directly against the driver or owner.

Wrapping Up 

Property protection insurance (PPI) is mandatory, and anyone driving in Michigan must carry it along with other required coverages. The coverage limit for PPI is $1 million. It's more like liability insurance that helps others if you accidentally damage someone else’s property.

Property Protection Insurance FAQs

What is the minimum required auto insurance in Michigan?

Michigan law requires no-fault insurance. It includes personal injury protection (PIP), property protection insurance (PPI), up to $1 million, and residual liability coverage for bodily injury and property damage. 

What are the most common types of car insurance coverage?

Common types include liability insurance, collision, comprehensive, personal injury protection (PIP), and property protection insurance (PPI). Together they protect against injury, vehicle damage, and property loss

How much does PPI coverage cost?

PPI is only a small part of your total auto insurance cost. In one state guide, PPI was shown to be about $9 a year for a sample policy.

What are the benefits of property protection insurance in Michigan? 

It covers damage your car causes to buildings, fences, or parked cars in Michigan by reimbursing up to $1 million, regardless of fault.

Should I get PD insurance?
Yes. PD insurance covers property damage you cause outside Michigan. It complements PPI and provides full protection whether you drive in or outside the state.