Mich. Comp. Laws § 257.1132

Sec. 32. When payment is made for property damage to a vehicle which payment represents the total value of the vehicle less the $200.00 deductible the secretary may require that the certificate of title of the vehicle be surrendered for cancellation as a junk vehicle. When the certificate of title is surrendered under this section the secretary shall issue a memorandum of title which will enable the owner of the vehicle to dispose of it as junk or salvage.