New way for an Insurance company to reduce the amount of your coverage- The "Driver-Step-Down" Provision.

Shelter Insurance attempted to reduce the amount of liability insurance available to its insured when the insured allowed someone else to drive his car. Although the declarations page for his car insurance showed that he had $50,000.00 in liability coverage, Shelter had amended the policy to include a "driver-step-down" provision which reduced the liability coverage to the state minimum required coverage of $25,000.00. Fortunately, the Kentucky courts found that Shelter had improperly amended the policy so that the amendment was not upheld and Shelter was required to pay $50,000.00. The Court found that the notice did not explain the reduction in coverage and that the reduction in coverage was not indicated on the declarations page and this constituted inadequate notice of the policy change.

It would be wise for all of us to review our policies to make sure that a "driver-step-down" provision is not included and if one is included then it would be wise to find a different insurance company to protect us. The "driver-step-down"provision is another attempt by an insurance company to reduce their amount of coverage and it is a good example why you need an experienced motor vehicle accident attorney when you are injured in a motor vehicle accident. The Kentucky Auto Accident Attorney has been representing victims of auto, truck and motorcycle accidents since 1986 and if you need help with your case, you can click here or call 502-241-8000 or 859-367-0036 or send an email to kyaaa@insightbb.com.