November 18, 2015 • 1 min read

High Price of Mandatory Auto Insurance in Predominantly African American Communities

R

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.

Related Articles

R
October 20, 2026 / Press Releases
Top Ten Insurance CEOs Earned Over $155 Million in Compensation in 2025, While Consumers Struggled to Pay Premiums
R
October 20, 2026 / Blogs
Insurance Companies Claim They Have to Hike Consumers’ Premiums. Their CEO Compensation, Dividends, and Advertising Costs Tell a Different Story
R
October 16, 2026 / Press Releases
Tips for Consumers to Get Fair Treatment from Insurance Companies After Hurricane Isaias
R
October 05, 2026 / Testimony & Comments
Letter Urging the California Supreme Court to Decide a Case Against USAA's Unfair Discrimination Against Enlisted Servicemembers