As the city deals with a plethora of uninsured drivers, Mayor Mike Duggan finally has a plan to not only get people driving legally, but lower their rates at the same time.According to CarInsurance.com, Detroit, has the nation’s highest insurance premiums, at approximately $5,000 to $1,100 more than Brooklyn, New York, the city with the second-highest rates.
One of the reasons cited for Detroit’s high rates is the large number of people who are driving without insurance and the state’s no-fault insurance law.
One of Duggan’s many campaign promises involved the issue of lowering car insurance rates. Unfortunately, it is more of a mess than Duggan ever could have anticipated. He has looked at a myriad of options, such as offering a no-frills, basic policy with fewer benefits, which is offered at lower rates in other cities with high insurance premiums.
“This is the most complicated problem I’ve ever worked on,” the mayor said last week when he came before a packed house at a town hall meeting at Historic Little Rock Baptist Church. “It’s gotten to the point where half the drivers in the city are driving without coverage because the insurance premiums are more than the car note.”
Even so, Duggan’s plan will face opposition in the Legislature, unfortunately from those inside the Detroit delegation. The Detroit caucus in the House of Representatives is almost unified in its disapproval of the plan. They feel as though the mayor is offering the citizens of Detroit a second-class, diluted version of insurance with lower benefits.
The D-Insurance, as it is fittingly being called, will give Detroiters the option to purchase a policy at a cost of approximately $2,000 a year, with coverage of $250,000 for emergency room visits and $25,000 for post-acute care, When that is compared with the other 50 states in the union, D-Insurance would be better than all but four states.
“I can’t just think of a more important issue for Detroiters than getting these outrageous auto insurance rates down,” said Melvin Butch Hollowell, Duggan’s top attorney and corporation counsel. “The D-Insurance will reduce dramatically the insurance rates for our citizens and how to keep their cars insured.”
People have worked very hard to see this needed opportunity come to fruition. For years, Hollowell has been one of the state’s leading advocates for lower car insurance. And the Executive Board of the Detroit Branch of the NAACP recently voted unanimously to endorse the mayor and the idea of D-Insurance legislation. Hollowell helped to draft the proposal.
“It’s something we have been working on here for the better part of my career with the NAACP – since 1986 – when we looked at the first comprehensive study on why rates are so high in Detroit, versus the country and the surrounding suburbs,” Hollowell said. “This will work. It’s a simple life issue.”
People throughout the city would not be forced to pay for the unlimited coverage that is now required under Michigan’s no-fault law. Even better, under Duggan’s plan, those who like what they already have can keep their current insurance. Moreover, D-Insurance will be sold by traditional insurance carriers.
Right now it looks as if State Senator Virgil Smith, who has been a longtime advocate for lowering insurance rates, will introduce the D-Insurance bill to the Michigan State Legislature.
Mayor Duggan, who is former CEO of the Detroit Medical Center, not only understands people and their need for healthcare coverage, he also understands that most people ultimately want to do the right thing — drive legally.
We live in a city where a car is almost a necessity, so it’s important that we help lift the crushing burden of the high cost of automobile insurance, which is one of the biggest issues confronting Detroiters.
Without hesitation, the Michigan Chronicle fully supports the mayor’s sensible plan to keep people on the road. As simple as it sounds, affordable car insurance will get kids to school and people to work. It’s a huge factor for everyday living.
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