A neighborhood's racial composition affects Auto insurance prices, according to a report from the Consumer Federation of America. (Photo: Thinkstock)

Good drivers who live in predominantly black neighborhoods are being charged significantly higher premiums than similar drivers in white neighborhoods, even after accounting for population density and income levels, according to a report released last week from the Washington, D.C.-based Consumer Federation of America.

The nonprofit consumer advocacy group reviewed quotes by ZIP code from the five largest Auto insurers — Allstate, Farmers Insurance, Geico, Progressive and State Farm — and found that on average customers in black neighborhoods are quoted premiums that are 70% higher that drivers in white neighborhoods — $1,060 vs. $622.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.