*A recent study highlights a troubling racial disparity in car insurance rates in Georgia.
FOX 5 Atlanta reports that ValuePenguin conducted the study by analyzing rates from Georgia’s ten largest insurers and cross-referencing the data with demographic information from the U.S. Census Bureau. The research reveals premiums in predominantly Black ZIP codes are significantly higher—11.1% above the state average, rising to 25.1% in areas where Black residents comprise over 70% of the population. On average, Black drivers in these neighborhoods pay $4,423 annually for car insurance, compared to $3,342 in predominantly White areas.
The disparity also extends to vehicle types, with insurance for a Toyota RAV4 costing 33.9% more in Black neighborhoods and Tesla Model Y rates increasing by 29.5%. Among insurers, Geico’s premiums in Black-majority areas were found to be 63.3% higher, while Farm Bureau had the smallest disparity at 15.6%.
“There are socioeconomic factors that have nothing to do with your driving history, such as your credit score, whether or not you own a home, and your marital status,” former Georgia Insurance Commissioner candidate Raphael Baker told WXIA, Atlanta Daily World reports.
Learn more about why drivers pay more in Black neighborhoods in the video below.
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