“White Privilege” in Auto Insurance

Jul 12, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    Good drivers in black communities pay more – a LOT more – for auto insurance than good drivers in white communities, even when things like income and population density remained the same.

    This according to research from the Consumer Federation of America (link below). If your neighborhood is 75% black or higher, you can expect to pay 70% more for auto insurance. The fictional white woman in the study would supposedly pay just $622 annually for auto insurance while the fictional black woman would pay $1,060.

    Ever run up against anger from someone who complains that they are being quoted a higher rate because of their race? If so, how do you respond?

    Insurance Forums | Black Americans pay over $1,300 more per year for auto coverage compared to white drivers
     
  2. YouGotMyMoney
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    YouGotMyMoney Guru

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    put this in off-topic where it belongs, 100% clickbait racebait trackbait
     
  3. Rearden
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    I'm confused.

    How would an insurer know either way your race when applying for insurance?

    I can understand rates being higher for crime-ridden areas.

    But how would an insurer know your race either way?
     
    Rearden, Jul 12, 2016
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  4. Brian Anderson
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    Not positive but I think they did it this way - If the fictional woman who "applied" lived in a neighborhood (ZIP code) that is 75%+ black (based on U.S. Census Bureau info the carriers look up?), her quoted rate was much higher than the quote for a 75%+ white neighborhood?
     
  5. leevena
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    Read the article but not the actual study because I could not find it. Did find a few things interesting. To begin with the Consumer Federation of America is a left/liberal leaning organization. Not making any judgments other than the fact that we know from what perspective this organization is viewing the world.

    The second observation was in how the article was written. During much of the article it never refers to the fictional woman by race. Only a few characteristics and then where they live, meaning in a predominantly black neighborhood or a predominantly white neighborhood. After determining that the neighborhoods have different costs, the article then assigns a race to the fictional woman.

    My point being (AND AGAIN, I DO NOT HAVE ACCESS TO THE STUDY!!!) it appears that the study is more about neighborhoods/geography than outright prejudice where costs were assigned by the race of the 2 woman.
     
    leevena, Jul 12, 2016
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  6. Cash
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    #BlackRatesMatter......................................
     
    Cash, Jul 12, 2016
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  7. vic120
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    Forget it .................................
     
    Last edited: Jul 12, 2016
    vic120, Jul 12, 2016
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  8. InsCommentary
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    It's possible for someone with a substandard credit score to pay more for auto insurance than someone with a DUI conviction. Welcome to Big Data where information on people can be obtained from hundreds of sources and it may be impossible to ascertain how the premium you pay is determined.
     
    Last edited: Jul 15, 2016
  9. Thad.Sipple
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    Stupid stupid stupid
     
  10. Heather
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    I tell them all the time, its based on where you live. Then I go on to talk about how bad all the accidents are there in the winter and stolen cars, no off street parking, etc. You have bad winters and a rear wheel drive car.

    My black customers, not all but a lot, bad credit, not a home owner, not married, not educated, single parent household strapped for cash, always late, jumps from company to company, lots of towing and comp claims, drives around with bad brakes and bald tires in January, no bank account for EFT, buy here pay here crap cars, the worst are the 40 year olds just moved here from NYC and have never driven and just don't know the rules of the road, then there are all the people who let their license expire or suspended for not paying a ticket and need to start all over.

    Its a fact the poor over pay for everything, check cashing fees, pay-day loans, pawn shops, buy here pay here, rent a center furniture, fees for pre-paid debit cards, higher costs in groceries and the general effects of having bad credit. This does not discriminate, black or white you are $%**!!
     
    Heather, Jul 18, 2016
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