This is the way the drop-down works: if your auto insurance policy contains a family drop-down, then if you pay for $300,000, $500,000, or even $1,000,000 in coverage, if a family member is injured in the accident, then the coverage for their bodily injury is dropped down to $20,000 per person and $40,000 per accident(the statutory minimum under the No-Fault Act). It may not have seemed like a big deal until I thought about the fact that I or my husband could be driving our car, get into an accident where it is our fault, causing injury to one of our daughters (ages 2 years and 3 months). Our girls' coverage for their bodily injuries would be limited to $20,000 ($40,000 per accident), even if we are paying monthly premiums for an $800,000 liability policy.
The Court of Appeals held in Ruzak that the insured had a choice to go with a different carrier, stating "there was no evidence that [the insured] had no other options regarding automobile insurance and that his only choice was to accept the terms as presented in defendant’s policy. Under a fair appraisal of the circumstances, [the insured]was free to accept the policy terms or reject them and to obtain automobile insurance through another provider."
Indeed, I do have a choice and I am choosing with my feet by taking my hard-earned premium money to a different carrier, one that does not include a family drop-down provision.
Labels: appeals, appellate, auto accident, Grand Traverse County, Michigan, Michigan Appeals, Michigan Appellate Attorney, no-fault
