A new study released by the Consumer Federation of America shows drivers in predominantly black communities can face car insurance rates upwards of two times as much as drivers in white communities. According to the report:
Most states prohibit the consideration of a driver’s race or ethnicity when determining premiums. However, the findings of this report suggest that good drivers living in predominantly African American communities will pay, on average, 70 percent more for state-mandated minimum liability-only coverage than a similarly-situated driver in a predominantly white community. After controlling for both population density (as a proxy for traffic density) and income, we found that drivers living in predominantly African American communities continued to see higher average premiums than similarly situated drivers in predominantly white communities.
Even controlling for factors that might be expected to raise premiums, the Federation found disparities between those living in black communities and white communities. Even more stark differences remained between people living in upper middle-income areas, as there was a 170% difference between black communities and white communities there.