A recent report by the New York Public Interest Research Group (NYPIRG) took a close look at how companies weigh some of the non-driving related factors when they provide price quotes to consumers. What NYPIRG found was startling. All else being equal, for three of the top five insurers in New York, a low wage worker with a high school degree could pay anywhere from 19%-41% more than a college educated professional for the exact same coverage.
That’s correct: the auto insurance rates charged to a high school educated bank teller were higher than those for a banking executive with a college degree – even when they had the exact same driving records.
Is that fair?
To most people, these factors tend to say more about who you are than how you drive, which raises serious concerns about the unfair impacts of their use on some groups of drivers. For example, according to recent Census data, African-Americans and Latinos are significantly less likely than Whites to obtain a college degree. U.S. Department of Labor data shows similar trends in the workplace, where African-Americans and Latinos are less likely to have professional or managerial jobs. (more…)