ATLANTA, GA –June 15, 2017 – Recently, the Consumer Federation of America reported on analysis of federal consumer expenditure data showing that African Americans and Latino or Hispanic households pay a disproportionately higher rate of premium for their auto insurance than whites do even when driver risk factors are the same. The findings amplify concerns about the high cost of auto insurance, especially for low- and moderate-income Georgians, who are required by law to purchase coverage to drive.
Data from recent studies also indicates that often minorities receive less coverage for the higher premiums that they pay. According to data from the Federal Insurance Office, almost 200,000 Georgians – more than 4% of the state’s population – may be affected.
Georgia Watch has submitted a letter to State Insurance Commissioner Ralph Hudgens urging him look more closely at how to protect Georgians from insurance companies that do business in the state that may charge higher auto insurance premiums for minorities than whites, based upon where they live. We also called on him to take steps that will increase the information available regarding auto insurance pricing and practices.