Georgia drivers in majority-black ZIP codes are charging more for their car insurance, a bombshell new study shows

A recent study from LendingTree has uncovered significant disparities in car insurance premiums for Georgia residents living in majority-Black ZIP codes.

According to the results, drivers in areas where Black residents make up at least 50% of the population pay an average of 11.1% more per year for car insurance than the national average. In areas where black residents make up 70% or more of the population, inequality rises to 25.1%.

Among insurers, Farm Bureau’s disparities were found to be smallest, while Geico’s insurance premiums were up to 63.3% higher in predominantly black areas than in predominantly white areas.

Even when comparing equivalent drivers, predominantly black areas see average premiums of $4,423 – 32.4% higher than the average of $3,342 in predominantly white areas. Critics point out that insurers’ use of ZIP codes, credit scores and other socioeconomic factors — rather than driving history — contributes to this inequality.

“There are socioeconomic factors that have nothing to do with your driving history, such as your credit score, whether or not you own a home, and your marital status,” Raphael Baker, former candidate for Georgia insurance commissioner, told Alive 11. “This disproportionately impacts Black people.”

During his campaign, Baker advocated for reforms similar to those in California and Massachusetts, where ZIP codes and credit scores are excluded from rate calculations.

Atlanta resident Bridget Cunningham expressed frustration with her $200 monthly premium despite a clean driving record, especially because her friends in wealthier, predominantly white neighborhoods pay significantly less.

“I’m very surprised, I have no tickets, no drunk driving… nothing!” Cunningham told Alive 11. My record is clean. My insurance shouldn’t be that high.

Advocates are urging drivers to shop around for better rates, bundle policies and look for discounts.