by Kandiss Edwards
December 6, 2024
Black Georgians are paying more to sit in that awful traffic.
Black Georgia drivers may be paying up to 25% more in vehicle insurance depending on ZIP code, according to a study by ValuePenguin.
The study looked at the insurance costs for majority Black and white neighborhoods. The analysis indicates that the higher the percentage of Black people in any given zip code, the higher the insurance premium.
“In areas where Black residents make up at least 50% of the population, annual auto insurance premiums average $3,929. That compares with $3,537 across all Georgia ZIP codes—a difference of 11.1%. In areas with 70% or more Black residents, the disparity jumps to 25.1%.”
Other variables considered when setting the price of an insurance premium are projected yearly mileage, make, model, and year of the vehicle, and whether or not the vehicle will be used for work purposes. Still, the evidence overwhelmingly suggests electric vehicles, owned in majority-white neighborhoods, will yield the cheapest results.
Average premiums for five vehicle types were analyzed in three different categories: ZIP codes with 50% or more Black people, ZIP codes with 70% or more Black people, and the average premium for every ZIP code in the state. The Toyota Rav4 is the most expensive vehicle to insure overall, 16.4% more expensive to insure in a 50% or more Black-populated neighborhood and 33.9% more expensive in a 70% or more Black-populated neighborhood.
The Tesla Model Y Long Range was the least expensive vehicle, but it was still 14% more expensive to insure in a 50% or more Black-populated neighborhood and 29.5% more expensive in a 70% or more Black-populated neighborhood.
While insurance companies continue to dictate the parameters of premium calculation, Black people need to look at options. Finding cheaper insurance or driving fuel-efficient vehicles so they can take advantage of lower premiums and taxes.
According to the study, the cheapest insurance companies for Black neighborhoods in Georgia were Farm Bureau and Farmers Insurance. The premiums are still much higher in other neighborhoods, but even a small percentage decrease is one penny less spent.
Electric vehicles are fuel-efficient, and the state of Georgia provides tax incentives, including the removal of the Ad-Valorem tax typically applied when registering a vehicle yearly. Electric vehicles can also save money on gas, one way to offset the “Black tax” associated with insurance.
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