Freman Hendrix, a candidate for the position of Mayor of Detroit, MI, announced on Tuesday, January 6th that he would file a class action suit against insurance companies if they refuse to lower their auto insurance rates.

In a statement sparked by an on-air conversation between his spokesman, Greg Bowens, and the host of local radio show Inside Detroit, Hendrix said, "I advocate exercising any and all options to bring some relief to the insurance rates in this city."

Hendrix went on to explain that auto rates in Detroit, are not only the most expensive in the nation, but, "The city of Detroit was twice as high as the second highest city in America, and there's no reason anyone can give me as to why." The city in the number-two spot is Philadelphia, PA.

The lawsuit, however, is not Hendrix's first plan of action. First, he says, he wants to form a community-based safety initiative to reduce vehicle theft, speeding, accident rates, and other auto-related crimes and incidents. He also doesn't think rates should be based on ZIP codes, stating that, "We don't believe things are equitable; car insurance rates based on a ZIP code rather than a person's driving habit is unfair."

Hendrix's idea may have merit, but according to Peter Kuhnmuench, executive director of the Insurance Institute of Michigan, the situation isn't quite as dire at the mayoral candidate says it is. He says that the rates listed in the Office of Financial and Insurance Regulation's Buyer's Guide are, "卬ot really a true reflection of what people are really paying," because they don't take discounts into account.

How much to discounts affect what the average Detroit resident actually pays? Lee Ann Welsh, regional communications manager of Allstate Insurance Co., one of the members of the Insurance Institute of Michican, says they're pretty significant: "These discounts can reduce a customer's premiums by as much as 50 to 70% from the base rate," she said.

Kuhnmuench claims that rather than being twice as high, auto insurance costs in Detroit are roughly $150 more than in Philadelphia because of mandatory unlimited medical coverage in his state.