October 3, 2017
Michigan Auto Law attorney Steven Gursten was interviewed by Detroit radio station WWJ-AM (950) as part of news coverage of the public legislative hearings in Lansing for a new Michigan No Fault reform plan.
House Bill 5013, also known as the Driver’s Choice Insurance Reform plan, was introduced September 26, 2017, in the Michigan House of Representatives. Public hearings before the House Insurance Committee began Tuesday, October 3, 2017.
Gursten told WWJ that Detroit Mayor Mike Duggan — who teamed with Michigan House Speaker Tom Leonard (R-DeWitt) on HB 5013, in an effort to deliver car insurance premium relief for Michigan drivers — is putting his constituents in danger with the proposal.
“I think Mayor Duggan unfortunately is a politician who wants to say he did something about auto insurance,” Gursten told WWJ reporter Michael Cohen. “But if you think about it, those neighborhoods in Detroit are exactly the people who are going to get hurt the most. Because instead of now having all these incredible legal protections under No Fault, they’re going to have $25,000 — and that’s it.”
Gursten’s comments can be heard here:
Gursten also explained that the real problem behind this No Fault reform effort is how insurance companies are not required to report their profit margins.
“We’re about to slash and take a machete to No Fault, to the system that’s worked so well for 40 years,” Gursten said. “We’re totally in the dark without any idea about what the numbers are. Duggan likes to say he’s a metrics nut, that he’s a numbers guy. He would never operate [the Detroit Medical Center CEO, for which Duggan served as CEO before becoming Detroit’s mayor] this way — totally blind, not having any idea if we’re even at a profit or a loss.”
Gursten’s explanation can be heard here: