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Duggan Moves To Eliminate 'No Fault Insurance' In Lawsuit Claiming It's Unconstitutional

August 23, 2018 - 5:13 pm

DETROIT (WWJ) - Detroit Mayor Mike Duggan is asking a federal judge to rule the state's no-fault insurance system is unconstitutional.

Duggan, along with eight others in the federal lawsuit, says no-fault creates insurance that is not "fair and equitable." 

No fault requires drivers to buy coverage to cover unlimited medical benefits. 

The federal lawsuit asks the court to give state lawmakers six months to change the law -- or revert back to a tort-based insurance system.

This follows a 2015 plan outlined by the mayor that would have required legislative approval.

At the time Duggan says his plan would allow for the city to bid competitively: “AAA and Allstate and State Farm and Geiko – everybody will bid on the D-Insurance – tell us what their rates will be. I hope we have six or eight different companies, we’ll send it to the city council, selected on a competitive process. City Council will approve multiple companies.”

Duggan’s D-Insurance plan was an attempt to allow Detroiters the option to have less medical coverage.

“The medical bills have gotten so out of hand that half of our citizens can not drive without being criminals – we’ve got to do something different,” said Duggan in 2015. “I would hope that we’ve hit the point where we finally say, ‘it’s not enough to just say no.'”

In a related suit, in April, Duggan said he was pursuing a regulation requiring landlords to turn over the names of renters in an effort to track down income tax evaders. 

"You have, in most of the high-rises, in the downtown area - you've got two-thirds of the people claiming they don't live in the city of Detroit. That's not fair to the Detroiters paying taxes. So, we have filed suit against people who are otherwise our friends - we've gotten orders from the court to turn over the names of tenants and we are knocking on doors."

It's widely known that car insurance is more expensive for city residents -- which may also lead people to claim another city as their home.