What is Property Protection Insurance (PPI) for Auto Insurance?

Last Updated on December 12, 2025

Property protection insurance (PPI) is a required type of no-fault liability coverage only for drivers in Michigan.

Michigan requires PPI on every insured vehicle, and it can pay up to $1 million per accident for certain types of property damage your vehicle causes in Michigan.

You can only buy PPI through car insurance companies in Michigan—it’s not a coverage that exists in other states.

Below is everything you need to know about property protection insurance (PPI), what it covers, what it doesn’t, and how PPI fits into Michigan’s broader no-fault system.

Key Takeaways

• Property protection insurance (PPI) is a Michigan-only required coverage that can pay up to $1 million per accident for certain property damage your car causes in Michigan.
• PPI commonly covers damage to buildings, fences, and fixed objects, and may cover damage to another person’s properly parked vehicle.
• PPI generally does not cover most damage to moving vehicles or accidents that happen outside Michigan; other parts of your policy (like liability, collision, or comprehensive) may apply instead.
• If a PPI claim is denied and you need to sue for benefits, Michigan law typically has a strict one-year deadline from the accident date to file suit.

What Is Property Protection Insurance?

Property protection insurance (PPI) is a mandatory part of Michigan’s no-fault auto insurance. It helps pay for certain property damage your car causes in Michigan, including damage to buildings, fences, and other fixed objects.

PPI can also pay for damage your vehicle does to someone else’s properly parked vehicle in Michigan. However, PPI does not pay for most other types of vehicle damage.

If you buy an auto insurance policy in Michigan, PPI is automatically included as part of the required coverages.

What Does Property Protection Insurance Cover?

PPI covers certain damage you cause to other people’s property with your vehicle in Michigan. Think “stuff you hit” that isn’t a moving vehicle.

Common examples of what PPI may cover include:

• Damage to buildings (homes, garages, storefronts)
• Fences, poles, guardrails, and signs
• Mailboxes and landscaping features
• Streetlights and other fixed public property
• Trash cans and similar personal property
• Damage to another person’s properly parked vehicle

PPI has a $1 million limit per accident for damage to all tangible property combined.

What PPI Does Not Cover

PPI is useful, but it’s not “everything property-related.” In particular, Michigan’s no-fault law specifically excludes certain property from PPI benefits.

In general, PPI does NOT cover:

• Damage to moving vehicles in most situations (that’s not what PPI is for)
• Property damage from accidents outside Michigan
• Your own property (or certain household-owned property) in many situations
• Improperly parked vehicles (a parked vehicle generally needs to be parked in a way that didn’t create an unreasonable risk of the damage that occurred)

Because the rules can get technical, if there’s a serious property loss, it’s smart to ask your insurer (or a Michigan-licensed agent) which coverage applies: PPI, liability, collision, comprehensive, or another part of the policy.

How Does Property Protection Insurance Work?

Michigan is a no-fault state, which means your insurance often pays first in certain situations regardless of fault.

PPI is part of that system. If your vehicle damages covered property in Michigan, the claim is generally made against the auto insurer for the vehicle involved. Many PPI situations (like hitting a fence or a properly parked car) are handled without the same “fault fight” you’d see in a traditional at-fault state.

Most other states use property damage liability coverage to handle property losses. Michigan is unusual because it has PPI and a separate liability component that includes property damage coverage for certain scenarios.

Minimum Car Insurance Requirements in Michigan

Michigan has some of the highest car insurance premiums in the U.S.—and also some of the most unique required coverages.

Every Michigan auto policy must include:

• Personal injury protection (PIP) (with multiple medical limit options under Michigan’s no-fault law)
• Property protection insurance (PPI) (up to $1 million per accident for covered property damage in Michigan)
• Residual bodily injury and property damage liability (BI/PD) (Michigan has default liability limits, and drivers can choose lower limits down to a minimum in many cases)
• Property damage liability coverage for out-of-state accidents (Michigan’s minimum is $10,000 for property damage in another state)

Collision coverage and comprehensive coverage are optional in Michigan (as they are in most states). These coverages protect your vehicle after an accident, theft, vandalism, hail, fire, storm damage, and other losses.

If you’re comparing policies, make sure you understand Michigan’s minimum required insurance limits and how your chosen limits affect what you pay—and what you could owe after a serious crash.

Property Damage Liability Coverage vs. Property Protection Insurance

Michigan requires both property protection insurance and a liability component that includes property damage coverage for certain scenarios. While they sound similar, they tend to apply in different situations.

PPI usually applies to: Property damage your vehicle causes in Michigan to things like buildings, fences, and properly parked vehicles.

Property damage liability coverage usually applies to: Property damage you cause in an out-of-state accident (Michigan’s minimum is $10,000 for property damage in another state). It can also apply in other liability situations where Michigan law allows a lawsuit for damages.

Mini-Tort: The “Car Damage” Lawsuit Most Michigan Drivers Hear About

Many people confuse PPI with Michigan’s “mini-tort.” They’re different.

Mini-tort is a limited property damage lawsuit that can help you recover out-of-pocket vehicle costs (like a deductible) from an at-fault driver in certain situations. Under current Michigan law, the cap is typically up to $3,000 for eligible accidents.

So if someone hits your car in Michigan, your first stop is usually your own collision coverage. Then mini-tort may help you recover some of your out-of-pocket costs from the at-fault driver (if you qualify).

PPI Time Limits and Exceptions

PPI is not unlimited. There are exclusions (like improperly parked vehicles and out-of-state accidents), and there’s also a strict time limit to take legal action.

Important: If you need to sue to recover PPI benefits (for example, because a claim is denied), Michigan law generally requires the lawsuit to be filed within one year of the accident.

Can I Sue for a PPI Claim?

If your parked car or other covered property is damaged, you’ll typically file a PPI claim with the insurer for the vehicle involved.

If the insurance company denies your claim, underpays, or delays unreasonably, you may have the option to sue for PPI benefits (and in some cases, the owner/operator if coverage is missing). Because Michigan no-fault deadlines can be strict, don’t wait to get help if a claim is going sideways.

If the other driver was uninsured, you may also need to explore other legal options and coverages (including your own policy) to get the property repaired.

How to Get PPI Coverage in Michigan

All car insurance policies in Michigan include property protection insurance (PPI). You don’t add it separately—it’s baked into Michigan’s required coverages.

If you live out of state but drive your own vehicle in Michigan regularly, the rules can be different than a short vacation or weekend trip. In general, nonresidents who operate a vehicle in Michigan for more than a limited period may need Michigan no-fault coverage. If you’re in that situation, talk to an agent who understands Michigan no-fault requirements.

Michigan premiums can be high, but you may still be able to save by comparing quotes. Enter your ZIP code online and compare options for PIP levels, deductibles, and discounts.

FAQs on Property Protection Insurance (PPI) in Michigan

Final Word on Property Protection Insurance

Property protection insurance (PPI) is a Michigan-only coverage that helps pay for certain property damage your vehicle causes in Michigan—especially damage to buildings, fences, and properly parked cars—up to $1 million per accident.

If you buy an auto policy in Michigan, PPI is included automatically. But because Michigan also has unique coverages like PIP choices and mini-tort rules, it’s worth comparing policies carefully so you understand what’s covered, what isn’t, and which parts of your policy apply in different accident scenarios.