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
Sources
- Michigan Department of Insurance and Financial Services, Auto Insurance Frequently Asked Questions required coverages, what PPI pays and does not pay, out-of-state property damage
- Michigan Legislature, MCL 500.3121 PPI benefits without regard to fault, how they are measured and the per-accident cap
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