Michigan Agents, What's Wrong with Auto Insurance in Detroit?

[InsuranceStep]

I'm a journlist working on a story about an auto insurance crisis happening in Michigan for the trade publication InsuranceStep.com.

Detroit, residents pay the highest auto insurance rates in the nation -- by a long shot. To put it in perspective, the average Detroiter pays $5,941 a year for auto insurance which is almost 50% higher than the next highest city, Philadelphia. The result is an epicdemic of uninsured drivers with some estimating a staggering 60 percent of drivers without coverage.

I would love to get an agents perspective, perhaps even an interview, of what is going wrong and how to fix it.

Specifically, I'd like to discuss the mandate for uncapped medical coverage in the event of an accident.

Thanks for your help,
Chad DiPrince

 

[Guest]

Your drunk, read this article and comment again.....

Top States Ranked by Auto Insurance Rates-Insurance Networking News

 

[InsuranceStep]

It's a little early to be drinking, even for me

I got the number from a report just released by National Association of Insurance Commissioners. That ranks Cities, and not States. Sorry I can't post a link, I'm a newbie and the forum won't let me.

 

[sdmillar]

It's a little early to be drinking, even for me

I got the number from a report just released by National Association of Insurance Commissioners. That ranks Cities, and not States. Sorry I can't post a link, I'm a newbie and the forum won't let me.

I don't do auto insurance as an agent, but if the average auto premium were as high as you are saying I would not be surprised by the number of uninsured. I really doubt that number is accurate. The no cap limit I am sure has a significant effect on rates, but I read somewhere that even if it were capped at 500k it would maybe bring down rates less than 10%.

 

[K.Hall]

Detroit is definitely more expensive - but $5k a year is a stretch.

 

[InsuranceStep]

I read somewhere that even if it were capped at 500k it would maybe bring down rates less than 10%.

The way it works now, Insurance companies pay the first $500,000 in medical costs; a state fund supported by a $175-per-vehicle annual fee takes over once bills hit that limit. Capping it at 500K wouldn't have much impact on rates. I think the big impact is with the mandate that everyone has to have 500K in coverage, where as most states have options for less coverage.

here is the link to the numbers:

iii [dot] org/media/facts/statsbyissue/auto/?table_sort_746253=3

you have to scroll about half way down to see the "by city" stats.

A couple of corrections to my earlier posts:
The study was done by Runzheimer International and not the NIAC. Also, the almost 6k price tag is not an average, but based on business driving for a 2012 Chevrolet Malibu LS. Sorry for the errors. It is a story in progress.

 

[InsuranceStep]

For those of you interested, the story is now up at InsuranceStep.com

If you have any feedback, let me know.

Thanks,
Chad

 

[Mr. B]

I moved from Michigan in 2008 and just last year got around to transfering the title, insurance and plates on the one car to Florida.

My insurance on a 2005 Cadillac XLR was $1141 every 6 months in Michigan. The same car in Florida is $324.

I have a clean record and have no accidents.

 

[leevena]

Here's the link.

Detroit's auto insurance crisis