Recent studies by the CFA illustrate the stark disparities that emerge when these factors are used as proxies for risk. For instance, safe drivers in predominantly African American ZIP codes often pay 70% more for state-mandated minimum coverage than similarly situated drivers in white neighborhoods ($1,060 vs. $622). In dense urban centers, this gap remains significant at 60%. Furthermore, even in upper-middle-class communities, the average premium in African American neighborhoods can be up to 194% higher than in comparable white ZIP codes.
