What is Property Protection Insurance, and why is it only in Michigan?
Property Protection Insurance (PPI) is one of Michigan’s mandatory no-fault insurance laws. It provides insurance for damage you cause to a fixed object, such as a parked vehicle or a building. This coverage only applies to incidents occurring in the state of Michigan. If you leave the state and damage a fixed object, your liability property damage coverage would apply.
Let’s explore the ins and outs of Michigan Property Protection Insurance, including coverage specifics and how much is required. Let’s get started.
What does PPI cover?
Property Protection Insurance is a mandatory coverage option on every insurance policy in Michigan, covering accidental damage a driver causes to fixed or parked objects. The following are examples of circumstances resulting in a PPI claim:
- Damaging a fence
- Colliding with a building
- Rear-ending a parked car
Property Protection Insurance vs. Property Damage Insurance
While each of these coverages covers damage sustained by others' property, they apply in different scenarios. Property Protection Insurance doesn't apply outside of Michigan. If you damage another driver’s property outside of Michigan, your property damage liability coverage would fill in to cover the damages.
PPI coverage applies regardless of fault. Property damage only applies if you’re determined to be liable for the incident.
PPI applies only to vehicles if they are parked. If you collide with a moving vehicle and are determined to be at-fault, your property damage liability coverage would apply.
How much PPI is required?
Michigan laws require all drivers to carry $1,000,000 in PPI coverage. Below are the total insurance requirements for car insurance in Michigan:
- Bodily injury: $20,000 per person
- Bodily injury: $40,000 per accident
- Property damage: $10,000 per accident
- Personal injury protection: unlimited
- Property Protection Insurance: $1,000,000
Michigan’s mandatory coverage levels exceed those of most US states. On average, it's nearly 83% more expensive to insure a vehicle in Michigan than in the rest of the US. This is primarily due to higher required levels of car insurance coverage, relatively high levels of insurance fraud, and low competition among insurance carriers.