Drivers in areas with high density of minority ethnic households are each charged up to £450 a year more, says study
Millions of people living in areas with a high density of minority ethnic households are paying an “ethnic penalty” of up to £450 a year each in higher car insurance premiums, according to a report co-written by the former equality commissioner Trevor Phillips.
The study said there was a strong statistical link between the proportion of minority ethnic households in an area and the cost of car insurance, and added that the phenomenon existed in well-off and poorer areas. It concluded that the way insurers calculated their premiums “has definitely produced an inequality of outcome to the detriment of BME [black and minority ethnic] groups”.
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