
Minority Areas Pay More for Car Insurance Than White Areas with the Same Risk - rotskoff
https://www.propublica.org/article/minority-neighborhoods-higher-car-insurance-premiums-white-areas-same-risk?utm_campaign=sprout&utm_medium=social&utm_source=twitter&utm_content=1491498493
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prostoalex
If "accident costs" were the only component in the cost of insurance, this
would make sense. I guess they also assume that the zip code one lives in is
also the zip code that one gets into accidents.

But insurance coverage reflects things such as theft and other damage (so high
crime neighborhoods will get charged more), reasonable security precautions
taken by the driver (a garage typically gets the buyer a discount compared to
a car port or street parking).

End of the day everybody gets charged for the miles spent on the road, and
unless major employers set up offices in such areas, the liability component
of the insurance would penalize high annual mileage.

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rotskoff
Well, the article claims that they are comparing premiums to "to the average
amounts paid out by insurers for liability claims in each zip code" which
seems to include the additional factors that you describe.

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prostoalex
That's the liability component. The collision / comprehensive / underinsured /
medical do not seem to be included, perhaps the article omits them, but actual
survey does not?

Here's the more or less full list of auto insurance components
[http://www.rmiia.org/auto/steering_through_your_auto_policy/...](http://www.rmiia.org/auto/steering_through_your_auto_policy/Auto_Insurance_Basics.asp)

