Pinnacle Actuarial Releases Report on Detroit Auto Insurance: Projects Drivers’ Savings of $600 – $2,300 under D-Insurance
The firm hired last fall by the City of Detroit to study the feasibility of creating a city-sponsored auto insurance system today released the details of its findings. The analysis outlines the root causes of the premiums Detroit motorists pay – the highest in the nation – and the dramatic savings they would realize under the City’s D-Insurance proposal.
“Detroiters have long suffered extremely high auto insurance premiums, usually twice the rates paid by auto owners in surrounding communities,” said Mayor Mike Duggan. “This independent report shows that the reductions D-Insurance can offer are even larger than we originally expected.”
The Detroit City Charter Section 9-801 provides a process by which the City can address those rates, beginning with a study by a qualified actuarial firm. In November 2014, the Detroit City Council approved the contract for Pinnacle Actuarial Resources, one of the largest independent actuarial firms in North America, to analyze the reason Detroiters are paying higher rates and to assess the feasibility of potential solutions to reduce those rates.
After more than 6 months of analyzing data such as auto injury insurance claims, medical treatment costs and compensation in Detroit and across the country, and data from the Insurance Research Council and other sources, Pinnacle Actuarial today is releasing that report.
The report concludes that the D-Insurance reforms included in Senate Bill 288, approved by the Senate Insurance Committee last week, would lead to major reductions in premiums paid by Detroiters. The estimated savings depends on the premium each driver is currently paying.
To read the rest of the summary or a copy of the full actuarial study, please click here.