Detroit Mayor unveils plan for auto insurance

latest auto insurance news

Mayor Mike Duggan outlines his plan to address insurance coverage in the city

Detroit Mayor Mike Duggan has unveiled some details about his plan to lower auto insurance rates in the city. This may be part of an overarching endeavor in Michigan to address the issues regarding the state’s no-fault insurance system and how it is contributing to higher premiums for drivers. Detroit is working to establish an insurance pool for drivers, offering them with affordable coverage that is expected to reduce the financial stress associated with auto insurance.

New insurance pool would provide drivers with affordable coverage

Mayor Duggan’s plan would provide drivers with a minimum of $25,000 in personal injury protection and place a limit on catastrophic medical coverage of $250,000. Medical costs beyond this limit would be the responsibility of a driver’s health insurance provider. Though Mayor Duggan did not note how this insurance pool would play alongside Michigan’s current insurance laws, such as the provision for lifetime insurance benefits for those receiving catastrophic injuries, he did say that those with lower tier benefits will have options to purchase catastrophic claims coverage.

Legislators must approve the formation of an auto insurance pool

latest auto insurance news Though the Mayor has outlined his plan regarding insurance coverage, this does not mean that his plan will see the light of day. Lawmakers must still approve the creation of an auto insurance pool in Detroit, but Mayor Duggan is hopeful that legislators will support his plan. According to Duggan, auto insurance has been a problem for Detroit drivers for nearly three decades and his plan to address the issue of high premiums is one of the most complicated pieces of legislation that he has ever worked on.

Plan could cut annual insurance rates by $1,000

The plan aims to cut $1,000 off the average annual auto insurance bill. Currently, the average yearly premiums for auto coverage in Detroit is $5,000. Making insurance more affordable could attract people to the city, which has been struggling to overcome significant financial issues. Some city officials believe that high insurance rates are preventing people from moving to Detroit.

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