What's behind the high costs of Michigan auto insurance rates?

Mar 12, 2013

Depending on where you live in the state, your auto insurance rates could be outrageously high.

During the last session of the Michigan Legislature, there was an attempt to change the state’s auto no-fault insurance with claims that it would lower rates.

This is something the auto insurance agencies keep lobbying for, and Governor Rick Snyder said in his State of the State address we need to keep costs down.

But there’s little evidence that your insurance rates would go down that much, or at all, by these limits.

That’s because the real reason auto insurance is so high in some areas is theft, fraud, and uninsured motorists.

The part of no-fault that guarantees someone severely hurt will get the reasonable care they need is just a fraction of the cost, and some would argue the best bargain in the nation.

Joining me now is a lawyer who, we should point out, fights the insurance companies over claims on a regular basis.

Steven Gursten is with the law firm Michigan Auto Law.

Most of us find auto insurance coverage a little confusing at best, so we started off by explaining what catastrophic coverage is, and what the Michigan Catastrophic Claims Association is.

Listen to the full interview above.