Detroit Car Insurance Insanity

**Neilr** · February-20-12, 06:15 PM

Originally Posted by mikeg19

If taking into account where one lives, would someone in downtown who lives in a gated complex [[Riverfront Apartments) pay less than someone who parks on Woodward in brush park? Or do they not get that complex in the calculation?

I agree with jt1. When I switched to AAA from MEMIC a few years back, my rates were cut about in half.

The agent, Alma Miller in the Dime Bldg., [[now retired) said, IIRC, they looked at the exact location rather than the broader area. I know she also told me that they considered a person's credit score. She said that there was a significant correlation between a higher score and lower claims.

**Hermod** · February-20-12, 07:28 PM

Originally Posted by Neilr

I agree with jt1. When I switched to AAA from MEMIC a few years back, my rates were cut about in half.

The agent, Alma Miller in the Dime Bldg., [[now retired) said, IIRC, they looked at the exact location rather than the broader area. I know she also told me that they considered a person's credit score. She said that there was a significant correlation between a higher score and lower claims.

Yes, the insurance companies with the aid of some rather powerful computer programs have been able to "slice and dice" risk factors and develop boutique pricing for all. They can price it right down to the street where you live, the miles you drive to work, how old your car is, make and model of car, credit score, type of employment, etc.

**Eastside** · February-20-12, 08:45 PM

I live in Detroit, drive a 2005 Subaru and pay a little over $1,200/year full coverage. Not too bad...

**Supersport** · February-21-12, 12:22 AM

We have Allstate, was cheapest by far. We pay a little over $1,500 a yr for our 2011 Dodge Ram with Hemi. I've lived her a decade now, and my rates have got cheaper every time I've switched companies. Typically, I switch home/auto insurance about every 2 years.

**Zacha341** · February-21-12, 07:06 AM

Detroit Tops List For Highest Insurance Rates In Country

State lawmaker intends on changing that

http://www.myfoxdetroit.com/dpp/news...tes-in-country

**Zacha341** · February-21-12, 07:13 AM

Wow that's incredibly low for Alstate. I can only afford them for their towing service which is about $12 a month and a good service.

I use another company for my car insurance and have it down to $1232 no-fault a year for a late nineties mid-sized, mid-luxury foreign sedan. Had the same rate for an older Ford in the same class as well. But you have to work at it.... as in search and use a broker... others wanted to charge me far more. I am with low profile insurance company: Pioneer State Mutual Insurance......

Originally Posted by Supersport

We have Allstate, was cheapest by far. We pay a little over $1,500 a yr for our 2011 Dodge Ram with Hemi. I've lived her a decade now, and my rates have got cheaper every time I've switched companies. Typically, I switch home/auto insurance about every 2 years.

**Detwa** · February-21-12, 07:58 AM

I used to let my Detroit relatives use my address for insurance, at my ex-husband's insistence. I didn't understand the risk at that time. I always had no fault insurance so it wasn't an issue, just an annoyance. Then when I bought a new car and had to get full coverage, my agent pulled a list of all of these people that "lived in my house" and no matter what I said, my rates were going to be high as hell. I had to prove that these people no longer lived there, which meant that they were going to be hit with higher insurance rates. It came down to them or me, and it caused a huge rift in our family as they started getting their notices that their insurance was going up. All of my in laws were mad at ME over it. I will never do that again, it screws you up something awful. I still get those random names popping up when I apply for insurance, even though I'm no longer in that family, but I'm damn sure not going to pay more money to help them out.

**Hermod** · February-21-12, 09:09 AM

Originally Posted by Zacha341

Detroit Tops List For Highest Insurance Rates In Country

State lawmaker intends on changing that

http://www.myfoxdetroit.com/dpp/news...tes-in-country

Zacha, there is a problem with that. If you prevent discrimination in insurance rates for Detroit, one of two things will happen. The insurance companies will stop writing policies in Detroit or they will have to make up the shortfall by having the rest of the state absorb the insurance costs of Detroit. Try telling a state legislator from da youpee or from the top of the mitten that his constituents will have to pay higher insurance premiums to bail out Detroit policy holders. Not gonna happen.

**Zacha341** · February-21-12, 09:34 AM

I did not say I agreed with it.... I just posted the article and the subhead [[State lawmaker intends on changing that). I think you have a good point.

**Zacha341** · February-21-12, 09:54 AM

Yep! That's is why I will not give 'anyone' my suburban mail box address or use it myself to claim a fraudulent residential address. Like co-signing that kind of thing reaches FAR and always blows up on you at the worst time when you least need the aggravation. No thanks.

Originally Posted by Detwa

I used to let my Detroit relatives use my address for insurance, at my ex-husband's insistence. I didn't understand the risk at that time. I always had no fault insurance so it wasn't an issue, just an annoyance. Then when I bought a new car and had to get full coverage, my agent pulled a list of all of these people that "lived in my house" and no matter what I said, my rates were going to be high as hell. I had to prove that these people no longer lived there, which meant that they were going to be hit with higher insurance rates. It came down to them or me...

**Det_ard** · February-21-12, 11:47 AM

Originally Posted by Zacha341

I did not say I agreed with it.... I just posted the article and the subhead [[State lawmaker intends on changing that). I think you have a good point.

Nothing will happen with this.

Nothing happened when Granholm was raising the issue [[without actually taking any action). Nothing happened when a collection of Detroit pols made noise about car insurance in Detroit. Nothing happened when Detroit ministers made noise about starting their own insurance company. Nothing's happened for the past quarter-century in all these efforts to lower Detroiters' insurance rates by either limiting prices or spreading cost.

What has been shown to work, time and time again, is shopping for the best deal.

**Zacha341** · February-21-12, 12:12 PM

Indeed that is what I have done. Some people I know will not give up on the 'big named' insurance companies. I did over a decade or so.

Originally Posted by Det_ard

What has been shown to work, time and time again, is shopping for the best deal.

**jt1** · February-21-12, 12:56 PM

Originally Posted by Hermod

Zacha, there is a problem with that. If you prevent discrimination in insurance rates for Detroit, one of two things will happen. The insurance companies will stop writing policies in Detroit or they will have to make up the shortfall by having the rest of the state absorb the insurance costs of Detroit. Try telling a state legislator from da youpee or from the top of the mitten that his constituents will have to pay higher insurance premiums to bail out Detroit policy holders. Not gonna happen.

Your premise assumes that the actuarial data supports the rates that many of the companies charge Detroiters. To date, no data has been supplied by the Michigan Office of Financial and Insurance Services or any insurance companies.

Until actuarial data is available to the public I will continue to question the integrity of the numbers when one carrier quoutes me $1000/month and another quotes me at $110/month.

I would also question why carrier the additional burden of the un-insured is only taken on by the community they un-insured live in. Certainly makes it easy to keep poor places poor and wealthy places wealthy. Someone living on 8 and Ryan [[on the Detroit side) without insurance causes my rates to go up but not someone a few miles away in Warren. Seems like a pretty illogical model.

The State of Michigan has failed to protect consumers and require that rates be based upon actuarial data [[since they don't require it from the insurers).

**JStone** · February-21-12, 05:00 PM

Good post jt1.

Eastside - Who is your insurance through?

**Scottathew** · February-21-12, 07:11 PM

I've got a 2007 Saturn Ion sedan with 80,000 miles and a 2009 mini-van with 26,000 miles. I live in near 10\Ryan. I get a discount for also having my home through the same company, Liberty Mutual.

Total monthly payment for full broad-form full coverage on both vehicles with $1,000 deductible and road-side assistance?

$125

My homeowners for my 1,150 square foot house with $1,000 deductible is less than $600 per year.

It's crazy to think of how much insurance costs in Detroit. WJBK recently ran a story about a woman next to one of Conyer's abandoned homes, and they claim that being next to such a structure causes her insurance to go up to $7,000 per year.

$7,000 would buy me homeowners insurance for 11.5 years.

**Eastside** · February-21-12, 07:15 PM

Hi JStone--

AAA is the insurer.

**astongraham** · February-21-12, 09:33 PM

perfect driving record for 22 years, not so much as a parking ticket ever in my life. For some reason my auto insurance over the past 2 years has ballooned from 52 per month to 226 per month for a crappy 99 tahoe. Insanity

**Supersport** · February-22-12, 01:04 AM

Zacha,

Actually switched from Pioneer to Allstate. Auto coverage was about the same, but saved about $400 on our home insurance. Also, perhaps its because we are with Allstate, but we buy their towing service for $50 a year for both my wife and I. As taxable value continues to drop, and with our NEZ designation, our property taxes also prove to be very competitive, if not amongst the cheapest in the region. Detroit has grown increasingly more affordable over the last decade, with houses now cheaper than ever too!

**michigansheik** · February-22-12, 06:20 AM

Originally Posted by jt1

AAA in the dime building has great rates for people in the city. I would avoid the Allstate's and State Farms at all cost.

I agree with this comment...paid $120 per month for comprehensive/broadform with $1000 deduct on my 2 year old car. good record, good credit, 30 years 'old', live in LP.
AAA downtown was cheaper by a large margin.

**Zacha341** · February-22-12, 07:32 AM

Glad to hear you're getting a good rate from Allstate. I'm doing great with Pioneer but results will vary, thus there are inconsistencies. I too use Allstate for my towing. Service has been very reliable.

Originally Posted by Supersport

Zacha,

Actually switched from Pioneer to Allstate. Auto coverage was about the same, but saved about $400 on our home insurance. Also, perhaps its because we are with Allstate, but we buy their towing service for $50 a year for both my wife and I. As taxable value continues to drop, and with our NEZ designation, our property taxes also prove to be very competitive, if not amongst the cheapest in the region. Detroit has grown increasingly more affordable over the last decade, with houses now cheaper than ever too!

**MizMotown** · February-22-12, 12:44 PM

I pay $117.00 per month w/ $500 deductible for 07 Chevy Colbalt thru Unitrin Direct for Dearborn Heights. It has risen from $102.00 for no reason except what they say raising costs of medical equipment & accident related stuff in the past year.

**hamtown mike** · February-22-12, 01:26 PM

Some very good points brought up here.

It seems like fraud is a recurring theme. Fraud by either using a different address, never having insurance to begin with [[and stealing plate tags) or simply buying a cheapy monthly policy to get your tags and then dropping the coverage.

So how about this
For false addresses-Allow insurance companies access to homesteaded addresses. If the data base shows Bob Smith has a house homesteaded in Detroit, but is trying to use a royal oak address, or if Bob Smith is trying to use a po box, bam!- Bob Smith picks up a fraud fine and the insurance agency gets a fraud finder's fee. Hell, let's let insurance companies look at tax returns while we're at it. In short, we've proven that we're all a bunch of jackasses looking to chisel wherever we can. so let's give our babysitters better tools to keep us in line.

Lapsed insurance- Yes, the fine is less expensive than the insurance. So let's change that. But what can you take from someone who is flat broke? You can assess them a fee, but if they can't or won't pay it, where's the teeth? Some might say that their credit score would take the hit. In Detroit, that's laughable. When you have folks scrambling to feed their families, a ding against their credit score is the least of their worries. Put them in jail? That's not the answer. So I suggest taking the car-there on the spot. It's an item used in the commission of a crime right? Boot it, call it in. tow company comes. perp is given card of lot. car sits for longer than 3 months- it becomes property of the towing company. The vehicle is sold. 1/2 going to the towing company 1/2 to the city. Forgot to bring your insurance card along with you? That's fine, we'll just hold on to your car at an impound lot until you can prove to a judge that you actually did have insurance. You'll get hit with the towing and storage fee for being a dumbass.

I'm going to sound like I'm 60 for a minute. Driving is not a right. There are rules. I'm sorry mass transit is for shit in the city. Perhaps as more and more vehicles are seized ridership and revenues will increase. Doing something drastic like on-the spot seizure, just might snap some sense into a teenager who see his or her parents loose a car because they wanted to cheat the system. Now get off my lawn and stop pulling your sister's hair!

**antongast** · February-22-12, 01:45 PM

Originally Posted by hamtown mike

I'm sorry mass transit is for shit in the city. Perhaps as more and more vehicles are seized ridership and revenues will increase.

This is a really ignorant comment. The only thing that will happen as bus ridership increases is that the buses will get even more overcrowded as Bing keeps slashing service.

**Planner3357** · February-22-12, 09:41 PM

I use an address in Plymouth as my garaging address. The rates for my 2003 Merc. Grand Marquis are $150 a month, full coverage. It would have been more than double that to have it insured in Detroit. I say the hell with that!

**313hero** · February-24-12, 04:09 PM

I live in Detroit and had to pay $300 down and $165 per Month. for NO FAULT on a 1999 Ford Taurus. They said because my wifes credit was poor and she only been driving 5 years, eventhough she had no tickets or accidents. My uncle had to turn his Mercury Milan back in because his insurance was more than the car note. I told him he should've just bought two cars and got some fake insurance lol