DETROIT (FOX 2) – There may very well be three characteristics of “The Motor City” Coney dogs, cars and skyrocketing car rates
“It’s very difficult, very difficult to get insurance,” said Reggie Turner. “I’ve shopped with a lot of insurance companies and they come with the same price, high prices.”
A lifelong Detroiter, Turner hopes to score some savings on July 2. That’s when the auto insurance reform law comes into effect. Mayor Mike Duggan outlined on Thursday how Detroiters and any Michigander can take advantage of this.
“For the first time since 1972 – two weeks from today – you can decide what your medical coverage is in the event of an accident,” he said.
And that’s a big problem.
“The reason our insurance is so high is because under the old no-fault law, we were forced to buy unlimited medical coverage with our auto insurance policies, even if Medicare or our health care would take care of us from work, if we were in a car accident. .
Now, on July 2, drivers can choose to keep their unlimited personal injury protection or PIP policies, opt out completely, or purchase reduced medical coverage through PIP.
Duggan showed a scenario in which a city worker could halve her car insurance by opting out of PIP completely.
“She has to make a decision: Is it worth $ 2000 to me with my Detroit city coverage instead of paying a second time,” he said.
But not everyone will be able to make that decision – only those with qualified medical coverage think Medicare or health insurance is off your job – can opt out of no-fault insurance. Those with Medicaid do not qualify.
“Let’s just say you can’t unsubscribe. You don’t have qualified health insurance or you aren’t too fond of your HMO at work,” Duggan said. “I don’t want to be dependent on my own health insurance, but I also don’t want to pay unlimited PIP. You now have two more choices, you can buy $ 500.00 in pip and you can buy $ 250,000 in PIP.
This theoretically leads to a lower insurance premium and more money in your pocket. Michiganders pay a lot more for auto insurance compared to other states – and Detroiters have the worst.
According to insure.com, the average cost to insure a car in Ohio is approximately $ 1,000. In Detroit that is four times as much.
“It creates a system of haves and not where you can afford mobility or not,” said Duggan.
There’s a catch if you opt out: Any family member who lives in your home must have health insurance for car accidents, as they might be driving your car. The best advice is to talk to your insurance agent about the best plan for you.