Detroit Car Insurance (Yikes!)

Owen RosenBusiness Member

Professional · Clinton Township, MI · Member since 2015 · 682 posts · 259 votes

9y

Who is your car insurance with? Our premiums are high but that would be on the higher side based on the parameters you mentioned though there are tons of variables. Give me a shout if you'd like us to take a look. One thing is for sure, Detroit would be higher!

Royal Oath Insurance Group4.9203 Reviews

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Christian Hutchinson

Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes

9y

Originally posted by @Valerie King:

I'm saving up to house hack and live in the suburbs of Detroit with my mom. With prices going up all around, I recently spread my house hunting reach to include Detroit.

Then, just last night, my dad pointed out that car insurance is higher there than the suburbs -- and anyone who lives in Michigan knows our state's premiums are much more insane than elsewhere in the country as is.

I already pay around $260 a month with an address in the suburbs, including a clean driver discount and discount for having a car with premium safety features.

But that could easily double if my address becomes a Detroit address, and that insane expense could easily make a Detroit investment pointless, depending on cash flow. If I were strictly investing that'd be one thing. But conventional loans generally require at least a year of occupancy.

Wanted to share this as an example of the many factors to consider when planning to investment in real estate.

Do you house hack in Detroit? I'd be interested in hearing what that's like for you!

http://wdet.org/posts/2015/09/21/81534-curiosid-wh...

No one registers their car in the Detroit. You register and insure your car in the suburbs. Also, I pay 150/mo for two cars a 2012 Buick and a 2008 Malibu for full coverage. I have paid as high as $200 maybe 3 years ago. At one point last year I had 4 cars registered with my 2013 Yukon and 2013 Escalade for $190/mo.

I have tenants in my Detroit properties who keep their cars registered in other States or at their parents.

I would simply register your vehicle outside Detroit, same with insurance. Change your driver's license to mate your registration/insurance of course. DPD will never question it, and the suburban police won't scrutinize you, if you get pulled over.

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Valerie King

OP

Rental Property Investor · Mount Clemens, MI · Member since 2016 · 110 posts · 18 votes

9y

Owen and Christian,

Thanks so much for the helpful insight, really. I have AAA & since I live at home with my mom, I "benefit" from a group/family "discount" too. I do have the full coverage package with the lowest deductible and I'm not 25 yet ... not sure if that matters. But I've never honestly compared options.

Anywho, I can't say I'd be comfortable with using a different address than my own if I were to move to Detroit. Is it legal to do that?

...whatever the case, time for me to do some car insurance research.

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Account Closed

Professional · Canton, MI · Member since 2016 · 296 posts · 230 votes

9y

Originally posted by @Christian Hutchinson:

Originally posted by @Valerie King:

I'm saving up to house hack and live in the suburbs of Detroit with my mom. With prices going up all around, I recently spread my house hunting reach to include Detroit.

Then, just last night, my dad pointed out that car insurance is higher there than the suburbs -- and anyone who lives in Michigan knows our state's premiums are much more insane than elsewhere in the country as is.

I already pay around $260 a month with an address in the suburbs, including a clean driver discount and discount for having a car with premium safety features.

But that could easily double if my address becomes a Detroit address, and that insane expense could easily make a Detroit investment pointless, depending on cash flow. If I were strictly investing that'd be one thing. But conventional loans generally require at least a year of occupancy.

Wanted to share this as an example of the many factors to consider when planning to investment in real estate.

Do you house hack in Detroit? I'd be interested in hearing what that's like for you!

http://wdet.org/posts/2015/09/21/81534-curiosid-wh...

No one registers their car in the Detroit. You register and insure your car in the suburbs. Also, I pay 150/mo for two cars a 2012 Buick and a 2008 Malibu for full coverage. I have paid as high as $200 maybe 3 years ago. At one point last year I had 4 cars registered with my 2013 Yukon and 2013 Escalade for $190/mo.

I have tenants in my Detroit properties who keep their cars registered in other States or at their parents.

I would simply register your vehicle outside Detroit, same with insurance. Change your driver's license to mate your registration/insurance of course. DPD will never question it, and the suburban police won't scrutinize you, if you get pulled over.

True. This practice is rampant. I worked in insurance in metro Detroit and saw it firsthand. It's also quite illegal and dishonest.

0 Reply

Christian Hutchinson

Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes

9y

Originally posted by @Account Closed:

Originally posted by @Christian Hutchinson:

Originally posted by @Valerie King:

I'm saving up to house hack and live in the suburbs of Detroit with my mom. With prices going up all around, I recently spread my house hunting reach to include Detroit.

Then, just last night, my dad pointed out that car insurance is higher there than the suburbs -- and anyone who lives in Michigan knows our state's premiums are much more insane than elsewhere in the country as is.

I already pay around $260 a month with an address in the suburbs, including a clean driver discount and discount for having a car with premium safety features.

But that could easily double if my address becomes a Detroit address, and that insane expense could easily make a Detroit investment pointless, depending on cash flow. If I were strictly investing that'd be one thing. But conventional loans generally require at least a year of occupancy.

Wanted to share this as an example of the many factors to consider when planning to investment in real estate.

Do you house hack in Detroit? I'd be interested in hearing what that's like for you!

http://wdet.org/posts/2015/09/21/81534-curiosid-wh...

No one registers their car in the Detroit. You register and insure your car in the suburbs. Also, I pay 150/mo for two cars a 2012 Buick and a 2008 Malibu for full coverage. I have paid as high as $200 maybe 3 years ago. At one point last year I had 4 cars registered with my 2013 Yukon and 2013 Escalade for $190/mo.

I have tenants in my Detroit properties who keep their cars registered in other States or at their parents.

I would simply register your vehicle outside Detroit, same with insurance. Change your driver's license to mate your registration/insurance of course. DPD will never question it, and the suburban police won't scrutinize you, if you get pulled over.

True. This practice is rampant. I worked in insurance in metro Detroit and saw it firsthand. It's also quite illegal and dishonest.

What's illegal and dishonest is that the zip code my car is registered in is 48236 has both a Detroit Side and a Grosse Pointe Farms side. If my car was registered at an address less than a 1/4 mile north of mine falling into Detroit, my vehicle insurance would be $700/mo, though NOTHING else at all would change about my insurance profile. That's the very definition of redlining.

Next I TRULY question the amount of auto-theft or vandalism Detroit is known for because of I have lived in Detroit 7 years with my car parked on the street(no driveways) and not a single time has my car been vandalized or attempted to be stolen. I had my windows broken out at homes in Rochester Hills, Madison Heights, I have had my tires stolen in Sterling Heights. BTW I drive way nicer vehicles now then I did then with a 2003 Kia Sephia,1999 Saturn, or a 1993 Buick Regal. Strangely my Escalade can sit on the street in front of my house in Detroit with no issue, but its the most stolen vehicle on the road. Or strangely enough people can go to a Lions, Tigers game and their cars get stolen/broken into, but my cars do not? My vehicle is parked at or near these locations 24/7.

Insurance companies charge it because they know they can get it. Its that plain and simple.
Property crime rates are failing rapidly in Downtown and Midtown Detroit and Insurance companies have claimed for years they went on a zipcode by zipcode basis, and not once in the last 10 years have they adjusted the rates down for these areas....hmmm.

1 Reply

Account Closed

Professional · Canton, MI · Member since 2016 · 296 posts · 230 votes

9y

Originally posted by @Christian Hutchinson:

Originally posted by @Account Closed:

Originally posted by @Christian Hutchinson:

Originally posted by @Valerie King:

I'm saving up to house hack and live in the suburbs of Detroit with my mom. With prices going up all around, I recently spread my house hunting reach to include Detroit.

Then, just last night, my dad pointed out that car insurance is higher there than the suburbs -- and anyone who lives in Michigan knows our state's premiums are much more insane than elsewhere in the country as is.

I already pay around $260 a month with an address in the suburbs, including a clean driver discount and discount for having a car with premium safety features.

But that could easily double if my address becomes a Detroit address, and that insane expense could easily make a Detroit investment pointless, depending on cash flow. If I were strictly investing that'd be one thing. But conventional loans generally require at least a year of occupancy.

Wanted to share this as an example of the many factors to consider when planning to investment in real estate.

Do you house hack in Detroit? I'd be interested in hearing what that's like for you!

http://wdet.org/posts/2015/09/21/81534-curiosid-wh...

No one registers their car in the Detroit. You register and insure your car in the suburbs. Also, I pay 150/mo for two cars a 2012 Buick and a 2008 Malibu for full coverage. I have paid as high as $200 maybe 3 years ago. At one point last year I had 4 cars registered with my 2013 Yukon and 2013 Escalade for $190/mo.

I have tenants in my Detroit properties who keep their cars registered in other States or at their parents.

I would simply register your vehicle outside Detroit, same with insurance. Change your driver's license to mate your registration/insurance of course. DPD will never question it, and the suburban police won't scrutinize you, if you get pulled over.

True. This practice is rampant. I worked in insurance in metro Detroit and saw it firsthand. It's also quite illegal and dishonest.

What's illegal and dishonest is that the zip code my car is registered in is 48236 has both a Detroit Side and a Grosse Pointe Farms side. If my car was registered at an address less than a 1/4 mile north of mine falling into Detroit, my vehicle insurance would be $700/mo, though NOTHING else at all would change about my insurance profile. That's the very definition of redlining.

Next I TRULY question the amount of auto-theft or vandalism Detroit is known for because of I have lived in Detroit 7 years with my car parked on the street(no driveways) and not a single time has my car been vandalized or attempted to be stolen. I had my windows broken out at homes in Rochester Hills, Madison Heights, I have had my tires stolen in Sterling Heights. BTW I drive way nicer vehicles now then I did then with a 2003 Kia Sephia,1999 Saturn, or a 1993 Buick Regal. Strangely my Escalade can sit on the street in front of my house in Detroit with no issue, but its the most stolen vehicle on the road. Or strangely enough people can go to a Lions, Tigers game and their cars get stolen/broken into, but my cars do not? My vehicle is parked at or near these locations 24/7.

Insurance companies charge it because they know they can get it. Its that plain and simple.
Property crime rates are failing rapidly in Downtown and Midtown Detroit and Insurance companies have claimed for years they went on a zipcode by zipcode basis, and not once in the last 10 years have they adjusted the rates down for these areas....hmmm.

I'm simply saying it's not a good idea to lie to insurance companies because if you ever need to make a claim then (a) you'd be committing insurance fraud and (b) you risk having your claim denied.

I have no idea if insurance companies are redlining in Detroit (they very well could be). Even if they are, it's not our job to decide that. It's the government's job. If you really think they are, you should call your congressman and encourage your neighbors to do the same.

0 Reply

Douglas A LewisPro Member

New to Real Estate · Livonia, MI · Member since 2019 · 27 posts · 4 votes

6y

If you are a safe driver I would just try to get the biggest deductible you can handle because that will help to reduce the premium you pay. Keep the deductible amount in savings or build up that in savings so if you need it you can pay with that. From a cashflow point of view this strategy makes sense, because hopefully if you are a safe driver you will never have to pay a deductible and you will have all the extra savings of a lower insurance premium. Just my opinion as someone learning the cashflow game that drives all over the metro Detroit area. I have been in a few accidents in my time driving and never had to use my deductible because they were not my fault. I also would not lie about where you live and register your vehicle.

Hope this helps! Good luck!

-Doug

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Jamiel Strickland

Rental Property Investor · Detroit, MI · Member since 2018 · 380 posts · 244 votes

6y

@Valerie King,

I did the same thing, I house hack in Dearborn so I did not think much of it then boom my car insurance is double! Something I did not think of before I moved into the city to househack.

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Detroit Car Insurance (Yikes!)

Detroit Car Insurance (Yikes!)

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