Property protection insurance
Every Michigan no-fault policy includes property protection insurance (PPI). Under MCL 500.3121, it pays for accidental damage to tangible property arising from the ownership, operation, maintenance or use of a motor vehicle, without regard to fault.
- What it pays: the lesser of reasonable repair costs or replacement cost less depreciation, plus loss of use where applicable
- Limit: $1 million for all property damage from one accident under one policy
- Where: crashes in Michigan only
Typical claims are a car through a storefront, a house, a fence, a utility pole, landscaping, or a car that was properly parked.
What it does not cover
MCL 500.3123 excludes:
- Vehicles and their contents, unless the vehicle was parked in a way that did not cause an unreasonable risk of the damage
- Property owned by the vehicle’s owner, registrant or operator, or their spouse or resident relatives
- Damage from crashes outside Michigan
Damage to moving vehicles is handled through collision coverage and the mini-tort, not PPI.
Which insurer pays
Under MCL 500.3125, the property owner claims first against the insurers of the owners or registrants of the vehicles involved, then the insurers of the operators. If your home was hit, you claim against the driver’s auto insurer, not your homeowner’s policy, although your homeowner’s insurer may pay and seek reimbursement.
One year from the accident. A lawsuit for property protection benefits must be filed within one year after the accident (MCL 500.3145(5)). There is no one-year-back extension for PPI.
Damage to your own car: the mini-tort
In most crashes, Michigan law bars suing the other driver for vehicle damage. The exception is the mini-tort in MCL 500.3135(3)(e). For crashes after July 1, 2020, you can recover up to $3,000 for damage to your vehicle not covered by insurance. Before that date the limit was $1,000.
| Your coverage | What the mini-tort can recover |
|---|---|
| Broad form collision | Usually little; the deductible is waived when you were not more than 50% at fault |
| Standard collision | Your deductible, up to $3,000 |
| Limited collision | Any deductible or other uncovered repair cost, up to $3,000 |
| No collision coverage | Repair costs, up to $3,000 |
Check your coverage type on your declarations page. See reading your declarations page.
Rules for a mini-tort claim
MCL 500.3135(4) sets the conditions:
- Comparative fault applies, and nothing is awarded to a party more than 50% at fault. See comparative fault.
- The case must be brought in small claims court, or in district or municipal court, when legally possible. Michigan’s small claims limit is $7,000.
- No damages are awarded if your vehicle was being operated without required insurance at the time.
- The result does not decide any other claim arising from the crash, such as an injury claim.
Many auto policies include mini-tort liability coverage, so the at-fault driver’s insurer often pays a written demand with the police report, repair estimate and proof of your deductible or uncovered cost. If it does not, the at-fault driver is personally liable.
Injuries and property damage are separate claims. A mini-tort payment does not affect your PIP benefits or a claim against the driver for your injuries.
Sources: MCL 500.3121; MCL 500.3123; MCL 500.3125; MCL 500.3135(3)(e) and (4); MCL 500.3145(5); MCL 600.8401.
Questions people ask us
Who pays to fix my car after a Michigan crash?
Your own collision coverage, if you have it. Michigan property protection insurance does not cover moving vehicles. If the other driver was more than 50% at fault, you can recover up to $3,000 of what your insurance does not pay, such as your deductible, through a mini-tort claim.
What does property protection insurance cover?
Damage your vehicle causes in Michigan to other people’s property, such as buildings, fences, mailboxes and properly parked cars. It pays up to $1 million per accident, regardless of fault.
Where do I file a mini-tort claim?
In small claims or district court when possible, as MCL 500.3135(4) requires. Most people first send a demand to the at-fault driver’s insurer, since many policies include mini-tort coverage.