Mayor Duggan Says Study Proves Proposed Detroit Insurance Plan Would Save Money For Drivers

DETROIT (WWJ) - Campaigning for his so-called "D-Insurance" plan, Mayor Mike Duggan says he can prove it will save Detroiters 50 percent.

A study of Detroit's proposed car insurance plan shows savings of $600 to $2,300 for city drivers.

Results of the study by Pinnacle Actuarial resources were released Tuesday and conclude that expenses associated with medical usage from policy holders is the "predominant cause of the higher premiums" in Detroit.

Currently, car insurance rates for Detroit residents are among the highest in the nation,

"If you schedule an MRI for a rehab case, for somebody who fell off and ladder and has Blue Cross, you get paid a certain amount. If that person got hurt in a car accident, you get reimbursed triple," Duggan said. "Every doctor, every hospital, every clinic in this state understands the difference."

The study concludes that allowing drivers to choose a $250,000 cap on healthcare costs would bring down car insurance premiums between 26 and 50 percent, depending on the driver's coverage and driving record. Costs beyond that level would be the responsibility of a driver's health insurer.

Duggan said the study shows the reason premiums in the city are so high is not crime, but the high number and cost of auto-related health care claims — double that of the suburbs.

"I will take you down the street we could count the number of billboards we see in Detroit: Have you had an accident? 1-800-call this number. Are you in pain? Etc.," Duggan said. "There is a whole industry in the community."

Duggan's proposed D-Insurance plan has passed committee in Lansing; and, if the legislation is approved by lawmakers, the mayor says it could be rolled out by January.