Reader’s Question:

I’m moving to Grand Rapids, Michigan, what is Property Protection Insurance in the State of Michigan?

Michelle

Grand Rapids MI

In Michigan, Personal Protection Insurance (PPI) is one of the required types of car insurance that state law mandates drivers to carry. There are 3 basic parts to a Michigan no-fault policy that must be purchased and carried on to every vehicle. Personal Protection Insurance is one of the three mandatory coverages in Michigan, the other two are personal injury protection (PIP) and Residual bodily injury and property damage liability (BI/PD).

Property protection (PPI) covers protection if you cause damage to any properly parked vehicles or fixed properties such as buildings or lamp posts in the state of Michigan. Outside Michigan, your Property Damage Liability Insurance provides your legal liability for property damage.

Property protection insurance coverage pays up to $1 million for damage your vehicle does in Michigan to other people’s property, such as buildings, poles and fences. This type of auto insurance coverage in Grand Rapids, MI will also pay for damage your car does to other people’s properly parked vehicles. This is normally the only time a vehicle will be covered under PPI. Usually if a vehicle (not parked) is hit while on the roadway in Michigan the only recovery a person can receive from the offender is through the mini-tort provision of MI law which allows the not at-fault party to sue the at-fault party for up to $500. The other option is for the individual to make a claim through their own collision coverage. If a driver chooses to use their own collision coverage then the person can still sue the at-fault party for up to the $500 mini-tort amount as a way to cover their collision deductible.

Tags: auto insurance