Crime and and high tax rates are two less than inviting elements that likely prevent some folks from moving into Detroit.
But JC Reindl of the Detroti Free Press also writes that skyrocketing car insurance rates is another thing that could keep the city's population from growing.
He writes:
As Detroit prepares to emerge from bankruptcy, its long-term prospects for financial solvency may depend in large part on reversing a decades-long slide in population. But along with the city's crime rate and local income tax, auto insurance rates that are often double or triple what suburban motorists pay are making it expensive for residents to stay — and discouraging newcomers.
The Freep story shows one couple for example, Jay Clark Reid and his wife, indie rock musician Ida Nilsen, moved to Detroit from Canada two years ago. They figured things would be ultra-affordable here.
But the Freep writes that they came up against the highest-in-the-nation auto insurance rates. The first quote they got was $500 a month for car insurance. They eventually found something for $300 a month.
"It was a real shocker. I was under the impression from my American friends that insurance was inexpensive here," said Reid, who had been accident-free for more than two decades and later found a $300-per-month deal with a different carrier. "I just didn't know how we were going to pay it."
Mayor Mike Duggan is interested in exploring the possibility of creating a city-sponsored car insurance company that would offer lower rates. The city council last week gave the green light for a $75,000 study on the issue.
Not everyone thinks that's feasible.
-- Allan Lengel
