# Property protection insurance (PPI)

> Michigan's property protection insurance (PPI) explained: the required no-fault coverage for damage your car does to buildings, fences and parked cars.

Canonical page: https://statecover-guide.com/glossary/property-protection-insurance/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Property protection insurance (PPI) is a mandatory part of every Michigan auto policy. It pays for damage your car does in Michigan to other people's property, such as buildings, fences and properly parked vehicles, up to $1,000,000 per accident. It is specific to Michigan's no-fault system.

## How it works

PPI is one of three coverages every Michigan policy must carry, along with personal injury protection (PIP) and residual bodily injury and property damage liability. Key points from Michigan's law and its insurance department:

- **No fault needed.** PPI benefits are due without regard to who caused the damage.
- **What it pays.** The lower of reasonable repair costs or replacement cost minus depreciation, plus loss of use where it applies.
- **What it does not pay.** Damage to other cars, unless they were properly parked. For damage to your own car, Michigan drivers rely on optional collision coverage and the limited mini-tort rule.
- **Where it applies.** Damage in Michigan. For accidents in another state, a Michigan policy's property damage liability coverage applies instead.

Example: you lose control on ice and hit a neighbor's fence and a car parked at the curb. PPI can pay for both, because the fence is property and the car was properly parked.

## Related terms

- [Mini-tort](https://statecover-guide.com/glossary/mini-tort/)
- [No-fault insurance](https://statecover-guide.com/glossary/no-fault-insurance/)
- [Property damage liability](https://statecover-guide.com/glossary/property-damage-liability/)
- [Personal injury protection](https://statecover-guide.com/glossary/personal-injury-protection/)
- Guide: [Michigan car insurance](https://statecover-guide.com/location/michigan/)

## Sources

- [Michigan Department of Insurance and Financial Services, Auto Insurance Frequently Asked Questions](https://www.michigan.gov/autoinsurance/frequently-asked-questions) — required coverages, what PPI pays and does not pay, out-of-state property damage
- [Michigan Legislature, MCL 500.3121](https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3121) — PPI benefits without regard to fault, how they are measured and the per-accident cap