Let’s take a look at what the data reveals about race and car insurance costs.
Car insurance by neighborhood
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.
Race was segmented by white and non-white in this analysis. Asian American, Black or African American, American Indian/Alaskan Native, and Native Hawaiian/Pacific Islander was denoted as non-white. White or European American was denoted as white.
According to the data, communities with 0-5% non-white residents actually pay double the monthly
In the ‘30s, the common practice of "redlining" marked areas with higher percentages of Black residents as less worthy of government-insured mortgages that were implemented in order to stop a wave of foreclosures spurred on by the Great Depression.
, the government used color-coded maps to rank the loan-worthiness of neighborhoods in more than 200 cities and towns in the U.S.
Ranking neighborhoods as least risky to most risky using the letters "A" to "D," areas ranked as "D" were noted as areas where property values were most likely to go down—and were marked in red. Most of the "D" neighborhoods were predominantly Black.
Today, racial segregation and discrimination in housing is outlawed. But perhaps there is still an imbalance when it comes to car insurance.
says that drivers in Black communities are quoted for premiums that are 70% more expensive than the premiums quoted for residents of white communities. That was according to a study done by the Consumer Federation of America.
The Balance noted that this was still true even when the study accounted for population density and income.
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Lisa Steuer McArdle is an insurance writer with over 15 years of experience writing and editing content in a variety of industries, including insurance and personal finance. Lisa specializes in taking deep dives into make and model-specific content that helps car owners and buyers make solid money-saving choices. Lisa has written over 350 articles for Jerry on topics including electric vehicles to classic cars. Before joining Jerry, Lisa worked in various aspects of the printing industry as a content writer, developer, and editor and earned her bachelor’s degree in creative writing from Lycoming College.