Detroit Mayor Says Plan Would Lower Car Insurance Cost

The mayor of Detroit says he’ll ask state lawmakers to approve a car insurance program that would lower rates for city residents.

Mayor Mike Duggan says the plan could cut costs by $1,000 a year. He has said the high price of insurance must be addressed to lure and keep people in Detroit.

Duggan talked about his plan at a public meeting Wednesday night. He says the city would seek bids from insurance companies to provide at least $25,000 in personal injury protection and cap catastrophic coverage at an additional $250,000. Costs beyond that level would be the responsibility of a driver’s health insurer.

State Sen. Virgil Smith, a Detroit Democrat, says he’ll sponsor the legislation. But some lawmakers from Detroit say insurers can’t be trusted.