Hobby v. Farmers Insurance Exchange

This case involves first-party, no-fault automobile insurance personal injury protection benefits. Plaintiff appeals as of right from the circuit court’s order granting summary disposition to defendant insurer. We reverse and remand for proceedings consistent with this opinion.

i

In March 1991, plaintiff insured a 1978 Datsun with defendant. In late August or early September 1991, plaintiff replaced the 1978 Datsun with a 1977 Ford Granada. At that time, the insurance policy provided, in what is commonly called in the industry an "automatic insurance” clause, that replacement vehicles were…