DETROIT (WXYZ) — A program designed to help cut parking fines for Detroiters in half will certainly help some people, but for others, participating in it means spending a lot more for car insurance.
The City of Detroit's Parking Fine Reduction Program has been spearheaded by Council President Mary Sheffield but still, not many people even know about it.
"I think we have to do better at advertising the program. During the budget season, I did raise this issue and we can maybe allocate some additional funds to advertise to market the program so that people are aware," Sheffield told 7 Action News.
Sheffield said she also recognizes that some Detroiters won't be able to participate in the program because of the requirement that the vehicle be registered in the city.
"It's a very unfortunate reality. And we talked about this when we created the program, that a lot of Detroiters will miss out, unfortunately, because they are registered somewhere else because of insurance issues. But we had to make sure we had a way of making sure that those who actually live in Detroit benefited from the program. And that's one of the ways - through their vehicle registration and also the driver's license," said Sheffield.
"There are people driving around, not because they don't want insurance, because they can't afford it," said native Detroiter Arlyssa Heard who frequently advocates for public education in the city.
Heard said the high cost of car insurance in Detroit has a ripple effect for so many people who feel forced to use addresses in the suburbs to get affordable insurance or forego any insurance at all.
"It is forcing people to make decisions, forcing them to be criminals since it's viewed as fraud," Heard said. "But people are put in positions where they have to make a choice. They have to get to work. Some people work across county lines. They have to drive children to school."
And not being able to afford car insurance is why many Detroit residents won't be able to participate in a program that would cut the typical $45 parking ticket in half.
Only about 5,600 Detroit residents are registered in the Parking Fine Reduction Program, which is not even one percent of the city's population.
The program covers "Expired Meter" and "No Parking" violations. And to be eligible for the half-off program, a vehicle's registered owner must adhere to the following listed requirements:
- Vehicle license plate(s) must be registered in the City of Detroit.
- Registered owners must not have more than one (1) unpaid ticket on their parking record, including the currently issued ticket. (This includes all outstanding City of Detroit parking tickets owed on multiple vehicles registered to the same owner).
- Parking ticket(s) must be paid within five (5) calendar days of issuance.
"I'm overwhelmed and don't have the money to pay for it," said a woman who let Detroit parking tickets pile up and now owes $1,700 in fines.
She didn't want to use her name or show her face on camera because while she lives in Detroit, her vehicle is registered in another city because she said she can't afford to have auto insurance in Detroit.
The woman said the parking tickets were accumulated during work hours because her employer doesn't offer parking. She said a recent trip to the city's parking office in hopes of working something out, did not result in a reduction of any fines or late fees.
"I need to (pay it) because my car is gonna get booted or towed," she said.
Heard said she lives in a zip code that insurance companies consider high risk.
"I've never had a car stolen. I've never had a theft or break-in where I live all my life, but it's high risk," she said. "All of the prices that I've been quoted from all of the major insurance companies are still unaffordable."
According to The Zebra, the average auto insurance in Detroit is $4,726 per year which is nearly double the average across Michigan.
"Full coverage for me with State Farm was $683 a month. Completely unbelievable," Heard said. "And my car is what? Almost like nine or ten years old. That's crazy."
Heard said she was recently able to get less expensive auto insurance coverage through a company called Cure.
Cure advertises that they do not use education, occupation, or credit score to determine car insurance rates.
"Compared to someone that may be living in Oakland County, for instance, what I was quoted for full coverage may still be sticker shock to them. But living in Detroit, it was almost like heaven," Heard said.
According to an analysis by Poverty Solutions at The University of Michigan, Michigan's auto insurance reform law fails to reduce disparities in cost by race and geography.
In a statement to 7 Action News, Erin McDonough, executive director of the Insurance Alliance of Michigan, writes:
“The bipartisan auto no-fault reforms are saving drivers money across the state, with an estimated savings of $5 billion over the past three years. In fact, more Michigan residents are buying auto insurance than ever before, with over 202,000 new drivers purchasing car insurance since reforms took effect. We’ve had more than 50 new insurance companies enter the Michigan market, which further drives down costs by creating competition – another win for consumers.”
Heard believes more can be done.
"I just want people to do the right thing for the people. Just do the right thing with what works for families, for people, for everyday people that's trying to make it."
