Property Protection Insurance

If you hit a parked car, light post, mailbox or other personal property while driving in your vehicle, property protection insurance will pay for the damages. Currently, the only state requiring property protection insurance, also called PPI, is Michigan.

Property protection insurance does not pay for any injuries, only damage to inanimate objects.

The difference between property protection insurance and other types of personal property coverage on your policy is that the insurance of the person who hits the property is the one whose insurance pays for it, regardless of whose fault the accident was.

Property protection insurance does not pay for any damages to your car while it is in a repair facility being repaired. Your insurance company will only pay for repair or replacement of the personal property you damaged if your actions were accidental. If you hit a mailbox out of anger, your insurance company will not pay to have it repaired, and you will be responsible for this out of pocket.

Your insurance company will determine whether it is cheaper to replace or repair the damaged item, and will pay for this up to the amount allowable under your policy. Check your car insurance policy to see what that amount is.