#1 in Car Insurance Rates

Between 1990 and 1993 the NAACP brought legal action against the auto insurance industry by suing AAA over the exorbitant prices to insure a car in the city of Detroit. Detroit, although the “Motor City,” is the most expensive place in the country to insure one’s car – the average annual premium for a Detroit resident being $5,894 in 2006 according to this article. There are some ridiculous reasons reported as being the reason for these high premiums – including Michigan having the 2nd highest deer related accidents – those pesky urban deer – and vague danger rankings even though Detroit is 16th on the list of auto thefts for 2005. The NAACP was all over this issue because much like unfair housing practices, and segregated schools, it came down to a majority-black city being discriminated against. One wonders how this affects the city – people move out, the poor stop paying – even though they are willing to follow the law – and insurance companies gouge those who are willing as well as able to follow the law and be insured within the city. If you are an insurance dealer within the city I would love to hear from you.

5 Comments so far

  1. max (unregistered) on June 18th, 2007 @ 5:14 pm

    a few months ago i moved literally two and a half miles straight up Mack Ave. from Detroit (East English Village) to Grosse Pointe and my car insurance was cut almost in half. no accidents, thefts or claims of any sort in a dozen years and the rates while in the city were laughable.

  2. Tom (unregistered) on June 19th, 2007 @ 7:26 am

    Insurance was one of the main reasons I moved to the Park. I remeber when I lived in Midtown, I asked my landlord if he knew any good places to get insurance – maybe an insurance company sensitive to living in the city.

    His advice?

    Sign up for insurance and don’t make payments. That way you’ll have something to show cops if you get pulled over. Just make sure you don’t get in any accidents because then you’re screwed. (!!!)

  3. Kim (unregistered) on June 20th, 2007 @ 12:40 pm

    $5.2K? That is insane. As much as I am a true believer in the fact that redlining does occur in Detroit, another problem is that consumers need to do a better job shopping around.

    If you can’t do the research on your own, get an insurance broker to dig up the best rates. I have one of the best coverage policies you can get for two cars at a Detroit address for $2,700.00/year. While that is alot compared to the burbs it is at least half the city average and for TWO cars!

    Do your research and you can find a good policy for a good price.

  4. hard to insure (unregistered) on June 21st, 2007 @ 6:31 pm

    I can imagine that many people would allow their car insurance to lapse, simply based on the cost. I can’t imagine paying close to $6000 a year for car insurance, rididculous!

  5. Mollika* (unregistered) on June 22nd, 2007 @ 11:38 am

    I have issues with media publicized statistics. If the number is based on the fact that most insurance payers are paying for two cars, I’m in that range and I hate it. I have shopped and I cannot get it down for my area code even though my car is parked in a gated, security patrolled, lot. Kim if you could share your insurance company with us it would be much appreciated. Thanks.

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