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Minority Neighborhoods Pay Higher Car Insurance Premiums Than White Areas With the Same Risk

Julia Angwin, Jeff Larson, Lauren Kirchner, and Surya Mattu complete the Black Box series with an analysis of premiums and payouts in California, Illinois, Texas and Missouri that shows that some major insurers charge minority neighborhoods as much as 30 percent more than other areas with similar accident costs.

But a first-of-its-kind analysis by ProPublica and Consumer Reports, which examined auto insurance premiums and payouts in California, Illinois, Texas and Missouri, has found that many of the disparities in auto insurance prices between minority and white neighborhoods are wider than differences in risk can explain. In some cases, insurers such as Allstate, Geico and Liberty Mutual were charging premiums that were on average 30 percent higher in zip codes where most residents are minorities than in whiter neighborhoods with similar accident costs.


Julia Angwin
Jeff Larson
Lauren Kirchner
Surya Mattu
@suryamattu  

Apr 05, 2017

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