Ther is something "rotten in Denmark" here, and much of the news coverage is missing the real reasons why Michigan auto insurance costs so much. I recently shared what I believe the public should know about how Michigan No-Fault auto insurance is priced, given the country’s third most expensive insurance rates and some of the largest profit margins in the entire country.
But not as much has been written about how auto insurance premiums, and this recent rate hike, are impacting Detroit residents specifically.
According to Chad DiPrince at InsuranceStep:
"Detroit, the Motor City, has a real problem when it comes to the price of insuring its motorists. According to a recent study by Runzheimer International, the city's residents pay the highest auto insurance rates in the nation by a long shot. To put it in perspective, the average Detroiter would pay $5,941 per year to cover a 2012 Chevrolet Malibu LS. That is almost 50% higher than the next highest city, Philadelphia. It’s a whopping 6 times more than the average cost just 2 hours away in Wapakoneta, Ohio, whose residents enjoy some of the country's lowest rates.
The rising costs have created an epidemic of uninsured drivers where, according to a recent report, 1.5 million Michigan drivers do not have insurance. In the city limits of Detroit it is even worse, with some estimating a staggering 60 percent of drivers without coverage."
The highest auto insurance rates in the nation!
50% higher than the next closest city!
6 times higher than an Ohio city just 2 hours away!
And so, it should come as no surprise, that auto insurance companies in Michigan are enjoying record profits in the state.
But that's not what the powers that be in the insurance industry want to talk about. Instead, they want to limit access to benefits of those who have been seriously injured in auto accidents.
Detroit residents should not be fooled by this misdirection and sleight of hand by the insurance industry. Nor should they tolerate being bilked by Michigan's by auto insurance companies. Wll-meaning Detroit legislators like Virgil Smith are just plain wrong, even if their heart is really in the right place, by taking away critical insurance protections from Detroiters who need it most. The answer lies in looking at, and questioning why, insurance companies in Michigan lead the nation in profits.
Detroiters need to tell their leadership that they simply won't stand by while being taken advantage of by Michigan auto insurance companies. Let's cast some sunlight on auto insurance company profits so Detroit residents can understand the real reasons that they're paying the highest auto insurance rates in the entire country.
Source:
detroit.injuryboard.com
