Watch CBS News

Duggan On Detroit Auto Insurance Rates: 'If You Don't Like My Plan, Tell Me What You're Going To Do?'

LANSING (WWJ) - Detroit Mayor Mike Duggan at the state Capitol Tuesday answering questions about his his "D-insurance" plan to lower auto insurance rates in the city.

Duggan told the Senate Committee on Insurance that his plan would lower the cost of average car insurance in Detroit by about $1,000 reports Newsradio 950's Stephanie Davis.

"If you don't like my plan, tell me what you're going to do," pleaded Duggan. "For all those Detroiters, Michigan residents who are excluded from the process?"

The mayor outlined how his plan would work after legislative approval.

Duggan says his plan would allow for the city to bid competitively: "AAA and Allstate and State Farm and Geiko - everybody will bid on the D-Insurance - tell us what their rates will be. I hope we have six or eight different companies, we'll send it to the city council, selected on a competitive process. City Council will approve multiple companies."

The key to Duggan's D-Insurance plan is to allow Detroiters the option to have less medical coverage.

"The medical bills have gotten so out of hand that half of our citizens can not drive without being criminals - we've got to do something different," said Duggan. "I would hope that we've hit the point where we finally say, 'it's not enough to just say no.'"

Detroit auto insurance rates are the highest in the country and the mayor says he'd like to see a plan in place by January 2016.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.