The cost of car insurance has skyrocketed over the past year, but rates have been even higher for certain drivers solely based on where they live. Take the most expensive city in the U.S. to insure a car. On average, car insurance costs $5,300 per year in Detroit, Michigan. Insurers claim the high prices are due to crime rates, but the data proves otherwise.
The line of thinking is that more crime occurs in densely populated areas, and if you live in those areas, it would cost more to insure a vehicle. However, Michigan outlawed insurance companies from using zip codes to set rates in 2019. The most considerable disparity is seemingly by race, with Black customers paying more than white drivers. And no, Black Michiganders aren’t the majority population in the state’s cities, but they certainly are in Detroit.
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