A new study finds that African-Americans pay more, on average, for auto insurance than people of other races. This study, commissioned by online auto insurance quote provider 4AutoInsuranceQuote.org, looked at annual car insurance rates for men in New York City and discovered that black men pay approximately $800 more than whites or Asians for their car insurance. The report also explained that insurance companies do not intentionally discriminate against black people; however, when determining insurance premiums, the companies do place an emphasis on the factors that African-Americans score poorly on.
The website surveyed 600 male New York City residents, and the results were shockingly lopsided. The data showed that, while Asian men paid $1,945 per year and white men paid $2,193 per year, black men paid $2,910 per year on average for their car insurance.
The cost discrepancy isn’t due to prejudice, the study said. The factors that affect insurance costs are -- most notably -- your credit score, the safety of your neighborhood, and your marital and employment status. African-Americans, on average, tend to have lower credit scores and live in more dangerous neighborhoods than Asians and Caucasians. They also have higher divorce rates. In addition, unemployment rates are higher in the African-American community. Although insurance companies do not intentionally charge black people more for car insurance, African-Americans do pay more for auto insurance than whites and Asians.
