Michigan No-Fault Law, section by section › MCL 500.3136
Tort liability for damage to tangible property from 1 accident in excess of limit under MCL 500.3121.
In plain terms
Added in 2019: when federal law requires liability insurance (interstate motor carriers, for example), tort liability survives for property damage from one accident above the $1,000,000 PPI limit in section 3121, capped at the lesser of the policy limit above that figure or $4,000,000.
How this section works in practice
Added in 2019 for the trucking industry. Property protection insurance caps benefits at $1,000,000 per accident under section 3121, and the act otherwise abolishes tort liability for property damage. This section restores liability for property damage above that cap when the responsible vehicle carries liability insurance required by federal law, which in practice means interstate motor carriers regulated by the Federal Motor Carrier Safety Administration. The excess liability is limited to the lesser of the carrier's policy limit above $1,000,000 or $4,000,000.
For an injured person the section has no direct effect; it exists so that a catastrophic property loss caused by a commercial truck (a building, a bridge, a fuel spill) can be recovered from the carrier's federally mandated policy rather than falling on the property owner. It is a useful reminder that commercial vehicle cases involve federal insurance minimums and regulations that ordinary car cases do not.
Text of MCL 500.3136
Sec. 3136.
(1) In addition to the exceptions expressed in section 3135, the abolition of tort liability under that section does not apply to damage to tangible property arising from 1 accident in excess of the limit in section 3121 for which liability insurance required by federal statute or regulation is in effect.
(2) The exception provided by subsection (1) is limited to the amount of the applicable limit under the insurance policy in effect less the limit under section 3121 or $4,000,000.00 in excess of the limit under section 3121, whichever is less.
History: Add. 2018, Act 677, Eff. Mar. 29, 2019
Source: MCL 500.3136 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 500.3135: Serious Impairment Threshold and Mini Tort
- MCL 500.3121: Property Protection Insurance (PPI)
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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