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.
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.
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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Source: Black Enterprise
