Detroit Residents Pay Nearly $900 a Month for Auto Insurance
Imagine a city where your auto insurance rates are so high, your monthly payment is more than your rent. A combination of city congestion and punishing state car insurance laws create a no-win scenario for drivers that could put them in jail or leave them with no way to recoup damages, even if another driver is at fault.
This isnâ€™t the dystopian plot of a science fiction novel; itâ€™s real life for the citizens of Detroit.
Rent Costs Less than Monthly Car Insurance Premiums
In Detroit, the average cost of car insurance is $10,723.22 according to MLive. That comes out to about $894 a month. The cityâ€™s average cost of rent for a two-bedroom apartment is only $761 according to rental website mynewplace.com.
No matter where a driver lives, going without insurance can result in jail time and fines. But in Michigan, it also means drivers canâ€™t use the stateâ€™s no-fault laws to receive compensation for injury. Meaning that if an uninsured driver is struck by a well-insured driver, the uninsured driver canâ€™t claim compensation for injuries.
Hard Working Families Faced with Hard Choices
The excessive cost of car insurance in Detroit is forcing hard-working families into driving without insurance or resorting to fraud by falsifying insurance cards, a felony offense. Most people need a car to get to work, but when their jobs donâ€™t pay enough to cover car insurance, they find themselves stuck. They do the only thing they can to continue working and feeding their families â€“ they go without coverage.
Mayor Mike Duggan is proposing an affordable car insurance plan for Detroit residents. But the mayor is also tackling a depressed economy, housing blight and ailing public transportation system. The city has many challenges, and affordable car insurance must undergo a feasibility study before it can get off the ground.
Photo credit: Daniel Lobo