There’s something inherently wrong with America’s car insurance system. And no, it isn’t because your insurance company will charge you more for picking out a pretty shade of red on your dream car, deeming that a color is the marker of an aggressive driver. It’s because a study by Consumer Reports, which partnered with nonprofit public-interest investigative journalism website ProPublica, found that car insurance companies charge different rates depending on which neighborhood the buyer lives in.

So what did the dynamic duo find? Surprise surprise, neighborhoods in the sample states of California, Texas, Illinois, and Missouri that have a higher number of minorities tend to pay higher rates on car insurance. The discrepancies aren’t small either, with some areas of cities with higher numbers of minority residents paying up to 30% more than white neighborhoods.

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Study Indicates Insurance Companies Capitalize On Low Income Zip Codes

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