The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Michigan Car Costs Up

Apr 1, 2019

The Michigan Catastrophic Claims Commission (MCCA) announced an increase of $28.00 per year (14.6 percent) to be tacked on to drivers’ insurance premiums.

People in Michigan already pay one of the highest auto insurance rates in the nation. And according to a University of Michigan study, Detroit has the highest auto insurance rates in the country, with an average annual premium of $5,414. On average, that is 18 percent of Detroiters’ incomes! And in some zip codes, auto insurance costs are 36 percent of drivers’ incomes!

This announcement came on the tail of the announcement of the 45-cents-per-gallon gas tax hike, proposed by the governor, to fix the roads, on top of already rising gas prices. No wonder about a third of Detroiters don’t even own a car. No wonder people drive without insurance!

We are always hearing about how the politicians are going to fix the problem of high-cost car insurance in Detroit. “It’s time to do something about it,” they tell us. It has been time and the politicians haven’t addressed it. So what’s that old expression: “Actions speak louder than words.”