Detroit mayor, residents sue over no-fault insurance law

Posted at 12:02 PM, Aug 24, 2018
and last updated 2018-08-24 12:02:55-04

DETROIT (AP) — Detroit Mayor Mike Duggan and residents have filed a federal lawsuit over Michigan’s no-fault auto insurance law.

The Detroit News reports that the lawsuit was filed Thursday against Patrick McPharlin, the director of Michigan’s Department of Insurance and Financial Services. The department oversees the state’s no-fault insurance system.

The lawsuit alleges the system has caused excessive rates and is unconstitutional. The filing says Michigan’s average auto insurance premium is more than $3,000, while the national average is about $1,500. The suit says Detroit has the highest auto rate of any city in the U.S., with drivers paying an average of about $6,200 for insurance.

Department spokeswoman Andrea Miller says officials are reviewing the complaint.

The lawsuit is asking the court to give the state six months to change the system.