DETROIT, MI — It costs an average of $1,800 per year for auto insurance in Detroit’s suburbs; it costs about $3,600 within the city limits, Detroit Mayor Mike Duggan said in February.
“Detroiters can’t afford to make $300 a month in car insurance, in most cases more than their car note,” Duggan said. “I’ve spent a lot of time already with the Republican leadership on some ideas on that …
“I just want the ability to be competitive on car insurance.”
The unveiling of a government-backed insurance program Duggan previously touted as “D Insurance” appears near, and according to the Detroit Free Press, the mayor says he’ll “roll it out next week.”
“The police tell me that half the people they pull over (in Detroit) don’t have insurance,” Duggan said at the leadership luncheon at Cobo Center Friday, the Free Press reports. “We’re going to come forward with a single plan to offer lower-benefit, lower-cost insurance.”
Duggan hasn’t revealed the details of his plan. Currently the state Legislature is looking at law that would eliminate some of the no-fault coverage requirements that make auto insurance in Michigan so expensive.
“Michigan is known for having the most comprehensive no-fault system in the country – and in turn some of the highest state car insurance rates as well,” carinsurance.com, an organization that evaluates insurance costs, writes on its website. “Even a driver with a great record will pay thousands of dollars a year in many Detroit-area suburbs.”
According to Carinsurance.com, many times the cost of insurance is much higher than the $3,600 per year cited by Duggan.