auto insurance

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A Detroit lawmaker thinks he has the answer to that city’s high rate of uninsured drivers.

State Senator Virgil Smith wants to create a pilot program that would allow Detroit drivers to sign up for bare-bones insurance policies with reduced rates. The idea is to cover medical costs up to $50,000 a person, or $100,000 an accident. Right now, the state’s no-fault law requires unlimited personal injury coverage. Smith says that’s hampered efforts to reduce urban insurance rates.

Steve Carmody / Michigan Radio

In one study, Michigan had the highest auto insurance rates in the nation. In another, Michigan ranked 11th in the nation.

That's according to a piece from Dawson Bell at the Detroit Free Press. Bell writes both studies cited "the state's unique mandate for unlimited coverage for personal injuries as a primary cause for high rates."

From the article:

Michigan auto insurance rates led the country -- $2,541 a year for a hypothetical 40-year-old man with a clean driving record -- in an annual survey released last week by the consumer insurance information site insure.com.

The Michigan rate jumped more than 21% from the same survey a year earlier, overtaking Louisiana, which topped the list last year.

Vermont, at $995 a year, was the cheapest place to buy auto insurance, the survey found.

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