Detroit Mayor Mike Duggan has filed a lawsuit in the US District Court to challenge the constitutionality of Michigan’s No-Fault auto insurance law.
Duggan, along with eight other plaintiffs from Michigan including Carrol Lockett, Joseph Vaughn, Gladys Peggy Noble, Stephanie Huby, Ian Davis, Haley Roell, Jacintha Pittman and Clayton Wortmann.
The lawsuit argues that the state’s No-Fault insurance system discriminates against people of lower income.
It also urges the court to ask the Governor and Legislature to fix the broken auto insurance system within six months.
According to Michigan law, drivers are required to have auto insurance even if they cannot afford the rates that are often more than twice the rates charged in other states.
Duggan said: “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.
“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.”
Michigan Department of Insurance and Financial Services director Patrick McPharlin has been named as the defendant in the suit.
According to the suit, the No-Fault automobile insurance system violates the constitutional rights of Michigan’s citizens as some of them are denied the ability to drive because they are not given the opportunity to purchase it at fair and equitable rates.