Group purchasing discounts for safe drivers and homeowners won't solve the problem of unaffordable urban insurance rates, but they're a good step that consumers and the insurance industry should embrace.

Gov. Jennifer Granholm's administration aims to help some city dwellers negotiate discounts through a nonprofit purchasing group made up of churches, block clubs and other neighborhood organizations. Detroit, the nation's poorest big city, has the highest average auto insurance premiums. Some drivers pay $5,000 a year or more for insurance while others are practically forced to drive uninsured.

Watters backs a plan, with pilots scheduled for early next year in metro Detroit and Flint, to bring down rates for lower-risk drivers and homeowners through these purchasing groups. With legislation pending that could mean stricter regulation, the insurance industry ought to work closely with steering committees that are setting up the pilot programs.

Peter Kuhnmuench, who heads the Insurance Institute of Michigan, said the risks associated with a customer's address would still influence rates, even with good records and group purchasing. But Watters hopes the industry's experience with the program will prompt companies to place less weight on where low-risk drivers and homeowners live.

Such a change would provide the best hope for urban policyholders. Meantime, the group-purchasing plan should provide much-needed relief for some drivers and homeowners in Detroit and Flint.

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