Property Protection Insurance (PPI) for Your Car – Auto Insurance Guide

Property protection insurance (PPI) offers protection against damages caused to public and personal properties. Examples of public properties include lamp post, mail box and etc. It can also compensate damages done to vehicles that are parked in a parking lot. Other personal properties that are covered in insurance include buildings, fences, poles, street posts and etc.

It is usually not required in majority of the states. There is only one state that requires PPI insurance, which is Michigan. However, you can buy PPI insurance as an additional protection to your finance in case you damage someone’s property when operating a motor vehicle. With property protection insurance, the insurer will pay the damages regardless if the accident is caused by the driver.

Property protection insurance can compensate up to $1 million dollar worth of damages. Normally, it won’t cover vehicles that are being hit while being driven on the highway. You must buy collision coverage if you want to cover the collision damage cost. The third party can use the mini tort provision in the law to sue you.

To get compensation, damages to the property must occur accidentally and not intentionally. For example, if you use your care to bang a lamp post purposely, the insurance company will not pay for damages. The insurance company is responsible for paying the cost of repairing or replacing the property. The insurer will determine the cheapest option to recover the condition of the damaged property. The amount of compensation that is released depends on the stated amount in the policy.