Detroit, Michigan


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Steven Gursten
Steven Gursten
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Detroiters pay high cost for discriminatory pricing on car insurance

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Michigan’s territorial system (aka ‘redlining’) for auto insurance amounts to legal discrimination, causing Detroit drivers to pay as much as $5,000 more 

The myth that Michigan car insurance companies peddle through their advertisements on TV, in print and in the mail is that being a good, safe driver is the most important factor when it comes to the premiums they’re going to pay.

Nothing could be further from the truth, especially if you live and drive in Detroit.

Detroiters know that in the world of auto insurance, ZIP code is king … not safe driving and not clean driving records.

Often and controversially referred to as “redlining,” Detroit drivers know first-hand that insurers’ legally sanctioned practice of charging higher premiums based on a person’s place of residence has caused Motor City drivers to frequently pay as much as $5,000 more for the same auto insurance coverage that their neighbors just outside the city limits have to pay.

As I wrote in my November 13, 2017, blog post, “Detroiters pay steep price for redlining,” the so-called territorial-based rate-setting system (which is arguably just a euphemism for legally authorized “redlining”) is really just “legalized discrimination,” whose effects go beyond just high insurance prices:

“It’s part of a broader civil rights issue, one that causes thousands of people to drive uninsured and suffer devastating consequences under Michigan law if they are ever injured in a terrible car crash. Not only do these people lose the right to collect Michigan auto No Fault benefits, but they cannot even bring a lawsuit for their injuries and pain and suffering against an at-fault driver under Michigan’s auto law.”

To learn more, please check out my blog post here.