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Detroit Residents Pay Nearly $900 a Month for Auto Insurance

Posted in Auto Insurance
by: Jessica Bosari

May 9th, 2014

detroit car insurance costs

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 isn’t the dystopian plot of a science fiction novel; it’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 city’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 can’t use the state’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 can’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 don’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 – 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

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