Michigan Compiled Laws

Mich. Comp. Laws § 500.3121 (2026)

Liability for accidental damage to tangible property.

✓ current as of July 2026

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THE INSURANCE CODE OF 1956

Act 218 of 1956

500.3121 Liability for accidental damage to tangible property.

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

PopularName Notes:

Act 218

PopularName Notes:

Essential Insurance

PopularName Notes:

No-Fault Insurance

Notes of Decisions

Cited in 75 cases (6 in the last 5 years), 1979–2025 · leading case: Universal Underwriters Ins. Grp. v. Auto Club Ins., 666 N.W.2d 294 (Mich. Ct. App. 2003).

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Universal Underwriters Ins. Grp. v. Auto Club Ins., 666 N.W.2d 294 (Mich. Ct. App. 2003). · cites it 5× “MCL 500.3121(1) states: 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…”

Turner v. Auto Club Ins. Ass'n, 528 N.W.2d 681 (Mich. 1995). · cites it 3× “MCL 500.3121(1); MSA 24.13121(1); MCL 500.”

Cruz v. State Farm Mut. Auto. Ins., 648 N.W.2d 591 (Mich. 2002). · cites it 2× “[10] MCL 500.3121. [11] Comment, Property insurance: A call for increased use of examinations under oath for the detection and deterrence of fraudulent insurance claims, 97 Dickinson L.”

Allied Prop. & Cas. Ins. v. Pioneer State Mut. Ins., 726 N.W.2d 83 (Mich. Ct. App. 2007). · cites it 20× “But does the same result obtain if the auto-repair business operates at a residence? Because the Legislature amended MCL 500.3121 to exempt no-fault carriers from liability for a class of risksproperty damage caused by an auto-repair businessit would seem to follow that the…”

Dep't of Transp. v. Initial Transp. Inc., 740 N.W.2d 720 (Mich. Ct. App. 2007). · cites it 18× “There is no dispute here that approximately $3.5 million in property damages were done to the overpass as a result of the October 6, 2003, accident and that, under the no-fault act, plaintiff is entitled to property protection insurance benefits of $1 million against Employers…”

Michigan Mut. Ins. v. Carson City Texaco, Inc., 365 N.W.2d 89 (Mich. 1985). · cites it 4× “"(2) Property protection insurance benefits are due under the conditions stated in this chapter without regard to fault. *148 "(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.”

State Farm Mut. Auto. Ins. v. Ruuska, 314 N.W.2d 184 (Mich. 1982). · cites it 2× “[9] Such an obligation could have been enforced by requiring proof of no-fault insurance as a condition to obtaining a driver's license.”

Meemic Ins. Co v. Michigan Millers Mut. Ins., 880 N.W.2d 327 (Mich. Ct. App. 2015). · cites it 5× “MEEMIC also alleged that, given that John Putvin was the owner or registrant of the Corvette involved in the fire, Home-Owners was liable to pay property protection insurance benefits for the losses caused by the fire under MCL 500.3121 and MCL 500.3125, even though it did not…”

Heard v. State Farm Mut. Auto. Ins., 324 N.W.2d 1 (Mich. 1982). · cites it 2× “" MCL 500.3121; MSA 24.13121. [10] "Sec. 3123.”

Corwin v. DaimlerChrysler Ins., 819 N.W.2d 68 (Mich. Ct. App. 2012). “” MCL 500.3121(1). A person claims property protection insurance benefits in the following order of priority: (1) insurers of owners or registrants of vehicles involved in the accident and (2) insurers of operators of *260 vehicles involved in the accident.”

CSX Transp., Inc. v. Benore, 154 F. Supp. 3d 541 (E.D. Mich. 2015). · cites it 9× “3121(1); see also Mich. Comp. Laws § 500.3121 (2) (providing “[pjroperty protection insurance benefits are due under the conditions of this chapter without regard to fault.”

Matti Awdish, Inc v. Williams, 323 N.W.2d 666 (Mich. Ct. App. 1982). · cites it 3× “13030, providing that an insurer shall not be named as a party defendant, and MCL 500.3121; MSA 24.13121, providing that a no-fault insurer is liable to pay benefits for property damage.”

Show all 75 citing cases →

— Mich. Comp. Laws § 500.3121(1) — 46 cases

Universal Underwriters Ins. Grp. v. Auto Club Ins., 666 N.W.2d 294 (Mich. Ct. App. 2003). “MCL 500.3121(1) states: 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…”

Turner v. Auto Club Ins. Ass'n, 528 N.W.2d 681 (Mich. 1995). “MCL 500.3121(1); MSA 24.13121(1); MCL 500.”

Allied Prop. & Cas. Ins. v. Pioneer State Mut. Ins., 726 N.W.2d 83 (Mich. Ct. App. 2007). “But does the same result obtain if the auto-repair business operates at a residence? Because the Legislature amended MCL 500.3121 to exempt no-fault carriers from liability for a class of risksproperty damage caused by an auto-repair businessit would seem to follow that the…”

Buckeye Union Ins. v. Johnson, 310 N.W.2d 268 (Mich. Ct. App. 1981).

— Mich. Comp. Laws § 500.3121(2) — 6 cases

Turner v. Auto Club Ins. Ass'n, 528 N.W.2d 681 (Mich. 1995). “MCL 500.3121(1); MSA 24.13121(1); MCL 500.”

Westerfield Companies v. United States, 858 F. Supp. 658 (W.D. Mich. 1993).

Michigan Millers Mut. Ins. v. Lancer Ins., 23 F. Supp. 3d 850 (E.D. Mich. 2014).

Ford Motor Co. v. Ins. Co. of North Am., 403 N.W.2d 200 (Mich. Ct. App. 1987).

Hawkeye Sec. Ins. v. State Farm Mut. Auto. Ins., 356 N.W.2d 7 (Mich. Ct. App. 1984).

— Mich. Comp. Laws § 500.3121(3) — 3 cases

Dep't of Transp. v. Initial Transp. Inc., 740 N.W.2d 720 (Mich. Ct. App. 2007). “There is no dispute here that approximately $3.5 million in property damages were done to the overpass as a result of the October 6, 2003, accident and that, under the no-fault act, plaintiff is entitled to property protection insurance benefits of $1 million against Employers…”

Michigan Millers Mut. Ins. v. Lancer Ins., 23 F. Supp. 3d 850 (E.D. Mich. 2014).

Jf Warran LLC v. Mainstay Motors Inc (Mich. Ct. App. 2020).

— Mich. Comp. Laws § 500.3121(5) — 5 cases

Dep't of Transp. v. North Cent. Coop. LLC, 750 N.W.2d 234 (Mich. Ct. App. 2008).

Ziehm v. State Farm Mut. Auto. Ins., 278 N.W.2d 678 (Mich. Ct. App. 1979).

Dep't of Transp. v. Initial Transp., Inc., 748 N.W.2d 239 (Mich. 2008).

Jf Warran LLC v. Mainstay Motors Inc (Mich. Ct. App. 2020).

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