Car Insurance Rates Depend on Your Zip Code and the Community That Lives There
Lisa Steuer McArdle
· 3 min read
There are many factors that impact what you pay for
car insurance
, including credit history, traffic violations, and how often you drive. Car insurance companies will also take into account the kind of car you own and your age. According to our data here at
Jerry
, car insurance rates also vary depending on where you live. We recently noted that West Coast drivers on average pay less for car insurance than drivers on the East Coast. Further data analysis reveals that car insurance rates may also depend on different zip codes and the community that lives in that particular area.
Car insurance by community
Jerry analyzed over 1 million car insurance quotes from July 2020 to July 2021. U.S. Census data was used to determine the racial breakdown of each zip code.
For this analysis, race was segmented by white and non-white. Asian American, Black or African American, American Indian/Alaskan Native, and Native Hawaiian/Pacific Islander were denoted as non-white. White or European American were denoted as white.
According to the data, communities with 0-5% non-white residents pay double the monthly car insurance premium of those in communities with 95%+ white residents on average. This trend is maintained for both male and female drivers.
In addition, for every 5% increase in white residents per zip code, drivers are paying $10 less on average in monthly premiums.
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Breaking down the numbers
In fact, communities with 0-5% non-white residents pay $354 on average per month for car insurance. This works out to be $331 on average for women in these communities, and $370 for men.
On the other hand, the data shows that communities with populations that are 95-100% white pay on average $168 for car insurance per month. This breaks down to $149 for women and $183 for men.
It’s also interesting to compare these numbers to what the data said about communities that are made up of 50-55% white residents. There, residents pay an average of $241 per month, with men once again paying slightly more than women on average.
Driving violations
An individual’s driving record can impact how much they pay for car insurance. However, Jerry’s data revealed there is no significant trend between percentage of white/non-white residents and percentage of residents with violations.
However, there were some differences in the types of violations in the different communities.
Speeding under 15 mph of the speed limit was a larger percentage of violation in majority white zip codes. Violations for speeding over 15 mph of the speed limit was almost double in majority non-white neighborhoods.
After speeding, another common violation among all the communities was failure to obey a traffic sign. Careless driving was equal in both types of neighborhoods.
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Jerry will send you quotes that compare to your current coverage—and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.
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