High auto insurance rates driving out Detroiters - KMSP-TV

High auto insurance rates driving out Detroiters

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DETROIT (WJBK) -

Pot holes, crime and no-fault insurance are the key reasons cited for sky-high auto insurance prices in Detroit. An auto financer in the city says none of those things, however, can justify the ridiculous rates he's been seeing lately.

"I've had quotes on customers that live in Detroit as high as $2,200 a month," Mario Pugliese tells FOX 2's Robin Schwartz.

A consumer website recently ranked Detroit number one on a list of highest insurance rates in the country - with an average premium of $10,700 a year.

"Two years ago it was still high if you were a Detroit resident, but it's probably doubled in the last 12 months, doubled or tripled," says Pugliese.

You may remember in Mayor Mike Duggan's saying in his State of the City Address that he wants to create affordable auto insurance for Detroiters called 'D Insurance.' Work on that is expected to begin this summer.

RECAP: Mayor Duggan delivers State of the City Address

The mayor said his own premium jumped to $6,000 when he moved into the city.

Efforts to change the no-fault insurance system on the state level have so far been unsuccessful, but House Republicans are renewing the push to end unlimited lifetime benefits for people injured in catastrophic crashes and replace that with a $10 million cap.

LINK: Tri-county execs against proposed no-fault insurance law changes

The idea still faces plenty of opposition.

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