Mayor Duggan challenges constitutionality of Michigan's no-fault auto insurance in new lawsuit

Posted at 6:17 PM, Aug 23, 2018
and last updated 2018-08-24 05:34:32-04

Detroit Mayor Mike Dugan, along with eight Michigan motorists, are suing the state to challenge the constitutionality of its no-fault auto insurance system. 

The lawsuit was filed on Thursday, Aug. 23 in the U.S. District Court. 

According to a release, Duggan and other complainants are "seeking to have Michigan's 45-year-old no-fault auto insurance law declared unconstitutional" because of "oppressively high insurance rates."

Duggan calls Michigan's no-fault insurance "broken," and contends that it's discriminated against people of lower incomes. 

Michigan has the highest auto insurance rates in the country, according to a report released this year by The Zebra, an insurance search engine and independent source for "pricing, coverage, and research."

Michigan's annual premium – at $3,059 – is more than double the national average of $1,512.

The higher cost is due to Michigan requiring drivers to have unlimited personal injury protection. 

“This law is causing thousands of people across Michigan to break the law by driving without insurance because they simply can no longer afford it,” Duggan said.  “Because the Legislature has not shown the leadership to address the issue, we are asking the court to provide residents the relief they need from these unjustifiably high insurance rates.”

Few the complete lawsuit below: 

No-fault Complaint - As Filed_3 by WXYZ-TV Channel 7 Detroit on Scribd