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

[88m3]

Yeah I'm in MA and paying slightly above that ($150/mo) for a '14 E350. Picked up a point or two on my insurance for a speeding ticket right when I got the car but other than that it's clean. I have Geico btw. When MA deregulated and allowed interstate insurance my rates went wayyy down. Competition has been good for MA insurance rates.

Not sure why insurance is so bad in NYS when I changed from progressive to the company I have now it was like 1000 a year cheaper. I get a bunch of discounts too. If my car was insured in BK as opposed to the wealth white area it is I'm sure they would price gouge me but again rural/city.

That said I don't doubt it for a second that car insurance companies are ripping off minorities just look at home insurance and redlining of mortgages in urban areas. They can spin it all they want but at the end of the day it's race based.

 

[feelosofer]

most people purchase their car insurance online or over the phone how the fukk can they offer you a rate based on how you look


and did someone here really just suggest that shyt cost more money in poor neighborhoods. are you fukkin stupid. what kind of economic sense does that make. who the fukk gonna overcharge on goods in a poor ass neighborhood

Everything costs more in poor neighborhoods because most stores know people don't have the transportation to shop outside their immediate neighborhoods.

 

[Pressure]

I live in an upper middle class area, own a business and drive relatively new cars and I pay twice as much as my white neighbors.

That's actually NOT what this article is saying.

 

[ORDER_66]

most people purchase their car insurance online or over the phone how the fukk can they offer you a rate based on how you look


and did someone here really just suggest that shyt cost more money in poor neighborhoods. are you fukkin stupid. what kind of economic sense does that make. who the fukk gonna overcharge on goods in a poor ass neighborhood

Are you fukking stupid or have you not been paying attention?! Dumb muthafukka...

 

[Pressure]

The study used to form this article, or at least the initial research, was to determine whether or not insurers base liability rates merely on risk. The data does a pretty good job showing that risk, defined as the amount of money insurers are paying out on average to the insured in those areas, is not any higher in the minority areas compared to non-white areas.

By not really digging further into the data, an issue that could merely be a result of lack of proprietary formulas used by the individual insurers, really sets these results of for a potential Simpson Paradox. At best this is a good jumping off point for further study. Functionally, it shows that people should shop around when looking for insurance because some companies may have a bias against you for certain coverage.

The most responsible conclusion is there are factors that lead to minority areas to have higher rates even if they are not taking race itself into the equation.

 

[tru_m.a.c]

Furthermore they used examples of two ppl with different plans

"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."


"Do you fools listen to music or do you just skim through it?"

 

[Pressure]

"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."


"Do you fools listen to music or do you just skim through it?"

Do you think race is the variable? E. G. This is a minority neighborhood therefore increase the rate by y factor?

Or do you think theY are using variables (on purpose or otherwise) that disproportionately affect minority neighborhood? Does intent matter?

Do you see a distinction between options one and two/two b?

Do you think it's something else?

 

[Mythical Truth]

Should sue.

 

[Kenny West]

"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."


"Do you fools listen to music or do you just skim through it?"

Most of the hard data (what was quoted in the OP) is about Illinois...The article cites Illinois data primarily.

"Do you fools listen to music or skim through it?"

 

[Dafunkdoc_Unlimited]

Redlining still exists.

​

 

[DlAMONDZ]

I noticed this a couple months back

Cac who recently moved into my neighborhood was fuming when geico upped the price on his Altima. He thought they raised his shyt because he moved and not because he moved into a "high risk" neighborhood

 

[hashmander]

Are you fukking stupid or have you not been paying attention?! Dumb muthafukka...

he (and his ilk) clearly know nothing about poor neighborhoods. they'll claim fraud in your zip code as reasons for higher rates, all sorts of bullshyt.

 

[acri1]

I pay like 450 every 6 months full coverage and roadside assistance. 2012 Honda civic, 26 black male.

Pay your insurance in full it's cheaper. I also have a few discounts.

I pay almost that just for no-fault, and I'm a couple years older than you are with an older car. It'd be even higher if I still lived in Detroit.

But then again, my state has stupid high car insurance rates. Never even had full coverage on a car because I'd be paying out the ass.


Michigan, Montana and New Jersey have the highest car insurance premiums

Some states place a higher value on medical coverage than others. An example is top-ranked Michigan, where the high rates are blamed on the state's requirement that consumers buy unlimited, lifetime medical benefits as part of their policy. This costs individual consumers but, in theory anyway, holds down taxpayers' expense to cover seriously injured motorists.

 

[tru_m.a.c]

Actually, no.

Re read what you just quoted. I don't think you get what it's saying.

 

[tru_m.a.c]

Most of the hard data (what was quoted in the OP) is about Illinois...The article cites Illinois data primarily.

"Do you fools listen to music or skim through it?"

Bro that's how articles are written. It's to provide you a story so that the data is easily digestible. This isn't an expose with 7 parts, each touching on a different city, state, region.

The limits of the article are not the limits of the study.