Detroit Car Insurance Insanity

**mikeg19** · February-19-12, 02:02 PM

Just read this and found this to be absolutely insane. I drive a 2011 Malibu LS and pay $80 a month [[perfect record). To pay the amount stated in the article is going to be the reason I don't move to downtown as I was initially planning to next year. Can anyone confirm that this is a pretty accurate report?

http://education.yahoo.net/auto-insurance/articles/most_expensive_cities_for_car_insurance.htm?kid=1K QVK

**Roq** · February-19-12, 05:12 PM

I would say it is. I've said this before and I'll repeat it here -- when it is more cost effective to pay the fine than to pay the insurance, something is wrong. From what I've observed, insurance companies can pretty well do what they want so I don't foresee this changing anytime soon.

**trotwood** · February-19-12, 06:34 PM

$80 a month Mike? Sounds like a pretty good deal compared to the quotes I've been given lately. Everyone's been quoting me at least $170 a month for basically nothing!

**MidTownMs** · February-19-12, 06:57 PM

Originally Posted by trotwood

$80 a month Mike? Sounds like a pretty good deal compared to the quotes I've been given lately. Everyone's been quoting me at least $170 a month for basically nothing!

$80 a month..where do you live?

**brizee** · February-19-12, 07:41 PM

It's ridiculous.

I 'm paying over 200/month for a 2010 Dodge with a freakin 1000 deductible.

**Bagley** · February-19-12, 08:00 PM

I would say that unless the driver was 16-21, that rate sounds a little high. I would peg most responsible adult drivers at around $3000 - 4200/year. Still outrageous but not $6000--though I'm sure you could find an agency that bumped up their rates to $6K to avoid writing policies in Detroit and they would take your money. I'm basing this on paying my own insurance in Detroit since I was 16 and paying my wife's insurance since she moved here.

As someone who lives Downtown, however, most of the good areas are populated by folks who would gladly pay the high insurance rates for the access they have to amenities. I don't know how far outside of Detroit one would have to be insured to pay $80 a month for full coverage with a reasonable deductible but I'm guessing that my 4 minute commute to work would be slightly longer.

**rb336** · February-19-12, 08:25 PM

Didn't they attempt to make redlining illegal a couple of decades ago?

I think insurance should be based on the following:
1) Total replacement cost of the car
2) Price of most common repair
3) Driver record - yes, this can include "new driver" bit

**Funaho** · February-19-12, 09:36 PM

That does seem awfully high. My insurance for my 2012 Kia Soul is a bit under $2400 a year, for a 38 yo single male living near Mexican Town with a clean record and decent credit.

**milesdriven** · February-19-12, 09:45 PM

Your choices are to pay through the nose, drive a beater and pay liability insurance that is higher than full coverage in the suburbs, or use a friend's address in the suburbs [[not sure how legal this is, but I'm sure 80% of people in the city do it anyway instead of pissing away thousands of dollars annually.)

**mikeg19** · February-19-12, 09:51 PM

Originally Posted by MidTownMs

$80 a month..where do you live?

I currently live in Warren off 696. Never had a ticket or accident and I'm 24. And I'm not sure how much a credit score plays into the insurance rate, but when I leased the car, it was over 800. Plus I've had Allstate for I think 3 years now.

**Neilr** · February-19-12, 09:53 PM

I drive a 2006 Infiniti M35x. With a perfect driving record and a high credit score, I pay ~$1,800 per year with AAA.

**cman710** · February-19-12, 10:16 PM

Originally Posted by rb336

Didn't they attempt to make redlining illegal a couple of decades ago?

I think insurance should be based on the following:
1) Total replacement cost of the car
2) Price of most common repair
3) Driver record - yes, this can include "new driver" bit

The price of insurance also needs to include the likelihood of there being an incident that results in an insurance claim. That is why very new drivers pay more than other adults, because young drivers are much more likely to get into accidents and need to submit a claim. Unfortunately, where someone lives can also impact this.

**CLAUDE G** · February-20-12, 01:56 AM

I have several employees who live in Detroit, but I allow them to use my Grosse Pointe address for billing purposes with their insurance company.

The other thing I have heard of people doing is getting mailboxes at the UPS Store, and using that for the insurance billing.

Its not right that they charge people who live in Detroit a higher rate due to the area.

**Hermod** · February-20-12, 05:20 AM

Originally Posted by CLAUDE G

Its not right that they charge people who live in Detroit a higher rate due to the area.

I pay much higher rates for comprehensive [[theft and fire) because i live in South Florida. This is because the area has a high incidence of cars being stolen and put in a container going to South America.

I would imagine that collision rates would be higher in a area which has frequent ice storms in the winter

i much higher rate for homeowners insurance because we a subject to the threat of hurricanes here in Florida and i am three blocks from the ocean.

Insurance companies insure against risk and the risk is set by environmental factors. What would be your insurance rates if you moved to Alpena?

**Zacha341** · February-20-12, 08:09 AM

Ok, I understand insurance is high, I have an off-sight address in the burbs I use for shipped mail but I refuse to do the fake address thing. I mean if you have a catastrophic car accident or hit and kill or seriously injure someone more than likely all of that will come out and then what...?

For certain I'd not ask anyone else to get involved in that by using their address. No amount of money saved or otherwise is worth all that should things go as bad as they can.

With google maps and what not I am sure many insurance companies will start to check to see if some addresses are an actual resident or a commercial mail box' site...

I hate paying high insurance, I do, but I'd be nervous cheating the system full out. Currently I am with an insurance company called Pioneer thru a broker [[http://www.vtcins.com/ 248.828.3377). Excellent rate for 'what it is' living in the city.

I cannot afford the big name folk [[AAA, Alstate, Farmers, Geico, Nationwide).

Originally Posted by CLAUDE G

I have several employees who live in Detroit, but I allow them to use my Grosse Pointe address for billing purposes with their insurance company.

The other thing I have heard of people doing is getting mailboxes at the UPS Store, and using that for the insurance billing.

Its not right that they charge people who live in Detroit a higher rate due to the area.

**izzyindetroit** · February-20-12, 11:44 AM

Originally Posted by CLAUDE G

Its not right that they charge people who live in Detroit a higher rate due to the area.

No kidding. As a 24 yo male I moved from Ypsilanti to Detroit [[Woodbridge) to be closer to work. A difference of around 30 miles less commuting each way. My 85 Mercury Cougar was about $700/year prior to the move, for just PLPD. When the INS company recieved the news that I had moved they wanted $1900 for the same coverage, even though I was in walking/biking/busing. Granted my driving record isn't the greatest. I was on the phone with the INS company for over an hour arguing with them. They finally agreed to keep my previous rate for 6 months, then they said they didn't want me for a customer anymore for the 6 month period.

**Zacha341** · February-20-12, 12:07 PM

Yeah, welcome to the Detroit "fee"... That's way too much for an 85 year model car... some independent restaurants and carry outs even charge [[or attempt) an extra dollar or two when you use your debit card! These businesses get an earful when they attempt that with me! Try the broker I referenced in a response above. And above all DO NOT let your insurance lapse. Then the price will be even more!

Originally Posted by izzyindetroit

...My 85 Mercury Cougar was about $700/year prior to the move, for just PLPD. When the INS company recieved the news that I had moved they wanted $1900 for the same coverage...

**antongast** · February-20-12, 12:33 PM

Originally Posted by Zacha341

Ok, I understand insurance is high, I have an off-sight address in the burbs I use for shipped mail but I refuse to do the fake address thing. I mean if you have a catastrophic car accident or hit and kill or seriously injure someone more than likely all of that will come out and then what...?

For certain I'd not ask anyone else to get involved in that by using their address. No amount of money saved or otherwise is worth all that should things go as bad as they can.

Yeah, but what if I sell my car to my friend Tom for five bucks, he insures it in his name at his suburban address, and then he lets me borrow it whenever I want in exchange for a monthly fee that happens to equal his insurance payments? As far as I know, it's not illegal to sell your car to someone, and it's not illegal for them to let you borrow their car that they own.

**catch22** · February-20-12, 12:45 PM

Originally Posted by antongast

Yeah, but what if I sell my car to my friend Tom for five bucks, he insures it in his name at his suburban address, and then he lets me borrow it whenever I want in exchange for a monthly fee that happens to equal his insurance payments? As far as I know, it's not illegal to sell your car to someone, and it's not illegal for them to let you borrow their car that they own.

I think you'll find a clause in most auto insurance policies that will deny coverage if you rent out your vehicle, which is essentially what Tom would be doing here.

**DetroitPlanner** · February-20-12, 01:15 PM

Originally Posted by CLAUDE G

I have several employees who live in Detroit, but I allow them to use my Grosse Pointe address for billing purposes with their insurance company.

The other thing I have heard of people doing is getting mailboxes at the UPS Store, and using that for the insurance billing.

Its not right that they charge people who live in Detroit a higher rate due to the area.

You have just set yourself up for an accessory to fraud once one of your employees has an accident and they deny his claim. The insurance company is going to look for any reason to refuse a pay-out. Once they start seeing multiple addresses you're cooked. Good job! You are only making the problem worse and are risking banruptcy or jail time.

**Zacha341** · February-20-12, 01:31 PM

^^^^ Precisely... I would not front off my address to a family member, employee - anyone for that.

And I request no one to do that for me.

I guess I'm just not that 'helpful' to engage/ expose myself [[my fiscal assets such as my business) in such an ongoing fraud that can 'bow' in so many ways - at so many levels.

All of them negative.

PS. An added negative factor is the employee that becomes 'disgruntled' as in former and decides to make a call...

**trstar** · February-20-12, 02:50 PM

This is known outrage of living in the city.

**Zacha341** · February-20-12, 03:31 PM

Yep, that is why I do not drive a car with a note [[financed). I only purchase older 'cash' cars. Who can do a car note and insurance [[full coverage) combo on say a luxury car? That's why you see crushed up new cars driving down the road. The person wrecked it and due to fraudulent or no insurance, their toast for claim....

Best think about that before you signed the dotted line at a new car dealership, where the sales person is only discussing the monthly note!

One friend was paying so much for that combo she was just working to afford to drive. Nuts!!

**jt1** · February-20-12, 04:05 PM

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.

**mikeg19** · February-20-12, 05:17 PM

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?