Detroit drivers struggle under high auto insurance premiums

detroit auto insurance

Auto insurance premiums in Detroit continue to be a burden for consumers

Drivers in Detroit, Michigan, are struggling to afford auto insurance coverage. The city is home to the highest premiums in the country, which can be up to $5,000 a year for coverage in some parts of the city. Because auto insurance coverage is so high, nearly half of the city’s drivers are “driving dirty,” which involves operating their vehicles without any insurance coverage whatsoever. In order to combat this problem, Mayor Mike Duggan aims to address the high insurance premiums that drivers are subjected to.

Michigan law leads to higher premiums

Mayor Duggan has heard many of the complaints coming from the city’s drivers and intends to address these concerns by making insurance coverage more affordable. One of the reasons that auto insurance coverage in Detroit is so high is because Michigan is the only state that requires insurers to provide unlimited lifetime personal injury protection. This means those injured in a car accident will have the entirety of their medical expenses covered. In some cases, these expenses are covered for several years. These benefits are provided regardless of who is found at fault of a car accident. The state also requires medical care providers to charge more for their services when rendered to those involved in a car accident.

D-Insurance plan could help drivers save money

detroit auto insuranceDuggan intends to place a cap on medical expenses, which he believes will lead to a decrease in auto insurance premiums in the coming years. The Mayor’s D-Insurance plan, as it is called, could save drivers as much as $2,300 a year on their coverage. The city would seek out bids from auto insurance companies that provide $25,000 for medical care and the plan would cap catastrophic coverage at $250,000. The plan would exist as an insurance pool, and any additional costs that drivers face due to a car accident would be the responsibility of their health insurance provider.

State lawmakers remain skeptical about insurance plan

The insurance plan will have to be approved by Governor Rick Snyder, as well as the state’s lawmakers. Currently, several legislators are skeptical about the benefits that the D-Insurance plan would provide to drivers. Some have issued concern that the plan would alienate other drivers in the state that are also struggling to manage high auto insurance premiums.

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