Thursday, November 20, 2014

Detroit examines creating its own auto insurance for residents

Auto insurance has long been the bane of many Detroiters. The rates that city residents pay is dramatically higher than those paid by our suburban neighbors and this has been one of the many impediments to bother attracting new residents as well as retaining current ones. All of this may change, though, thanks to a plan approved by the City Council today.

The City of Detroit has hired Pinnacle Actuarial Services of Bloomington, Illinois to examine the feasibility of creating a city-owned insurance program. This program, tentatively called D Insurance, would provide city residents with auto insurance rate that much cheaper than what is currently available.

This idea has been proposed several times over the years, most notably by former City Council Member Kwame Kenyatta. However, prior to today, no action has ever been taken on making it a reality.

I believe this is an important first step in either creating such a program or in scaring the crap out insurance companies so that they make changes to their rates. I commend Mayor Mike Duggan as well as Council Member Gabe Leland who represents the Warrendale and its surrounding neighborhoods on the Detroit City Council and each of the other council members for taking this important first step.

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