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BLAC magazine: High Cost of Insuring Cars in Detroit

Attorney Steven Gursten discusses what happens when Detroit drivers are uninsured, and how the auto insurance companies benefit

BLAC magazine wanted to look into the safety crisis in Detroit regarding uninsured drivers who cannot afford to pay for the high auto insurance rates.

BLAC magazine reporter Trevor W. Coleman interviewed Michigan Auto Law’s Steven Gursten on the issue.

While Michigan’s auto accident coverage is very generous for accident victims, it’s cost-prohibitive for the working poor in inner cities, Gursten said:

“The average driver carries a double burden of paying for mandated insurance—and the state’s insurance commissioner is the only insurance commissioner in the nation without authority to keep insurers from gouging consumers.

“So you have this crazy, insane situation where you’ve got insurance companies in Michigan—with all the hard times and economic troubles we’ve gone through in this state—that actually have some of the highest profit margins in the entire nation because they are price gouging, and our insurance commissioner isn’t able to say, ‘Hey, you’re overcharging for a product we’re required to buy,’ which is no-fault insurance. That’s why insurance is so expensive here.”

You can read the full story here: High Cost of Insuring Cars in Detroit

April 3, 2013

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