Dan Gilbert could fund auto insurance ballot measure

Fiona Kelliher , JC Reindl | Detroit Free Press

Show Caption Hide Caption Michigan's biggest scandal is auto insurance, Duggan says Detroit Mayor Mike Duggan talks about the need for reform in the state's no fault auto insurance system.

If the state Legislature does not change Michigan's auto insurance system soon to lower insurance rates, Detroit businessman Dan Gilbert may take the matter out of lawmakers' hands.

Gilbert and his Quicken Loans family of companies is considering a ballot initiative that could put an overhaul of the no-fault system in front of voters in November 2020, Jared Fleisher, Quicken Loans' vice president of government relations, said Monday.

Plans for the ballot initiative would proceed if the Legislature fails to pass a no-fault revamp in the forthcoming lame duck session or during the first half of 2019, he said.

“We believe a legislative solution is the best solution, and we are doing everything we can to encourage our legislators to do that," Fleisher said.

The possibility of a Gilbert-funded ballot initiative was first reported by Crain's Detroit.

In 1992 and 1994, voters statewide rejected ballot issues that would have limited no-fault's medical coverage. Fleisher said he believes that voters are now ready to approve major changes to no-fault because the cost of insurance is worse than in the 1990s.

"Today, rates are out of control," he said.

Fleisher said there hasn't been a decision on exactly what the ballot issue would call for.

Any ballot campaign would require signatures from 8 percent of this year's votes for governor — 338,481 — to qualify for the next general election.

Michigan's unique no-fault insurance system pays for potentially unlimited medical expenses after accidents — regardless of which driver messed up. It also plays a key role in driving up costs for Michigan residents, who have the highest insurance rates in the country, according to a report from The Zebra.

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In August, Detroit Mayor Mike Duggan claimed the policy was unconstitutional in a lawsuit against Michigan's insurance director. That suit comes after another much-discussed no-fault overhaul proposal was voted down in the Legislature last year.

For his part, Gilbert has joined other corporate leaders for some time in arguing that the law deters new residents and inflates costs.