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Attorney Steven Gursten tells The Peninsula that car insurance credit scoring is ‘discriminatory’

Gursten says that non-driving factors in determining auto insurance rates are ‘so arbitrary,’ and that D-Insurance plan would only exacerbate the city’s problem

Michigan Auto Law attorney Steven Gursten was featured in The Peninsula’s recent analysis of how credit scoring is determining auto insurance premiums.

The Aug. 4, 2017, story discussed how advocates of Michigan’s No-Fault system are pushing for reforms that would strengthen the system. One reform in particular would abolish non-driving-related practices such as credit scoring and redlining, which would treat drivers in urban areas like Detroit more fairly and lower auto insurance premiums.

Gursten told the publication, “We’re punishing people for living in Detroit. This is so arbitrary, so discriminatory, that it has literally been outlawed as a practice in other states but it has been allowed to exist in Michigan with the Michigan Supreme Court’s stamp of approval.”

Gursten also noted that Detroit Mayor Mike Duggan’s controversial D-Insurance plan proposal is not feasible. Under the plan, an optional lower limited policy would only provide $275,000 in coverage, whereas the No-Fault system provides an unlimited cap on medical coverage.

“Detroit drivers are still going to be paying more for insurance than everyone else, but now they aren’t going to have any protection whatsoever,” Gursten told The Peninsula. “Now all these people are uninsured and they are going to be dependent on the government — which of course increases taxes on everybody else. And if you know anything about trying to get treatment for a serious brain injury or spinal cord injury from Medicaid, the quality of care is shockingly bad and the waits are shockingly long.”

This entry was tagged: credit scoring , D-Insurance , Michigan No-Fault reform
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