Michigan No-Fault Law, section by section › MCL 500.3121
Liability for accidental damage to tangible property.
In plain terms
PPI pays, without regard to fault, for accidental damage to tangible property arising out of the use of a motor vehicle in Michigan, at the lesser of reasonable repair cost or replacement cost less depreciation, plus loss of use, up to $1,000,000 per policy per accident. It does not cover damage that occurs in the course of a vehicle-repair business.
How this section works in practice
Property protection insurance is the third coverage every Michigan policy must include, and the one most drivers have never heard of. It pays, without regard to fault, for accidental damage to tangible property caused by the ownership, operation, maintenance or use of a motor vehicle in Michigan: a fence, a storefront, a garage door, a utility pole, a properly parked car. Benefits are the lesser of reasonable repair cost or replacement cost less depreciation, plus the value of loss of use, up to $1,000,000 per policy per accident.
What PPI does not do is pay for damage to the vehicles involved in the crash or their contents, which is why Michigan drivers buy collision coverage and why the mini tort in section 3135(3)(e) exists. Damage to your own vehicle in a repair shop is also excluded, as is any damage inside the business of repairing or servicing vehicles. The exclusions and priority rules are in sections 3123 and 3125.
Text of MCL 500.3121
Sec. 3121.
(1) Under property protection insurance an insurer is liable to pay benefits for accidental damage to tangible property arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle subject to the provisions of this section and sections 3123, 3125, and 3127. However, accidental damage to tangible property does not include accidental damage to tangible property, other than the insured motor vehicle, that occurs within the course of a business of repairing, servicing, or otherwise maintaining motor vehicles.
(2) Property protection insurance benefits are due under the conditions stated in this chapter without regard to fault.
(3) Damage to tangible property consists of physical injury to or destruction of the property and loss of use of the property so injured or destroyed.
(4) Damage to tangible property is accidental, as to a person claiming property protection insurance benefits, unless it is suffered or caused intentionally by the claimant. Even though a person knows that damage to tangible property is substantially certain to be caused by his or her act or omission, he or she does not cause or suffer such damage intentionally if he or she acts or refrains from acting for the purpose of averting injury to any person, including himself or herself, or for the purpose of averting damage to tangible property.
(5) Property protection insurance benefits consist of the lesser of reasonable repair costs or replacement costs less depreciation and, if applicable, the value of loss of use. However, property protection insurance benefits paid under 1 policy for damage to all tangible property arising from 1 accident shall not exceed $1,000,000.00.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1993, Act 290, Imd. Eff. Dec. 28, 1993
Source: MCL 500.3121 at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections this one refers to
- MCL 500.3123: PPI Exclusions
- MCL 500.3125: PPI Priority
- MCL 500.3127: Sharing PPI Losses Among Insurers
Sections that refer to this one
- MCL 500.3136: Property Damage Above the PPI Limit
Practice pages
Important: This is not legal advice
This article is general information about Michigan personal injury law. It is not legal advice and should not be relied on as a substitute for consultation with a licensed Michigan attorney about your specific situation. The laws, deadlines, procedures, and frameworks here are general guidelines that may or may not apply to your case.
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