Auto Insurance
Auto Insurance Costs in Majority-Black Areas in Georgia Are 11.1% Higher Than State Average
Auto insurance is expensive — and it’s not getting cheaper. According to ValuePenguin’s State of Auto Insurance, rates were expected to increase by 12.6% in 2024.
Black residents in Georgia face additional challenges. Those in Black-majority areas pay 11.1% more on average for auto insurance than across all Georgia ZIP codes, according to the latest ValuePenguin study. That disparity rises to 25.1% in areas in the state where Black residents make up at least 70% of the population.
Here’s what else we found.
On this page
- Key findings
- Auto insurance costs 11.1% more in Black-majority areas in Georgia
- Disparity rises when comparing rates in Black-majority vs. white-majority areas
- Toyota RAV4 is 33.9% more expensive to insure in predominantly Black Georgia areas
- Geico has biggest insurance disparity in Georgia
- Finding affordable auto insurance: Top expert tips
- Methodology
Key findings
- When comparing equivalent drivers and coverage across Georgia, researchers found auto insurance costs 11.1% more in Black-majority areas. In areas where Black residents make up at least 50% of the population, annual auto insurance premiums average $3,929. That compares with $3,537 across all Georgia ZIP codes — a difference of 11.1%. In areas with 70% or more Black residents, the disparity jumps to 25.1%.
- Premium disparities are even larger when comparing Black-majority areas and white-majority areas. For white-majority ZIP codes, the average auto insurance cost is $3,398, meaning insurance is 15.6% more expensive in Black-majority areas. Across the five car models analyzed, premium hikes range from 14.0% to 16.4%.
- Average auto insurance rates are 32.4% higher in predominantly Black areas versus predominantly white areas. In areas where at least 70% of the population is Black, the average annual premium is $4,423 — $1,081 higher than the $3,342 average premium in predominantly white ZIP codes.
- The Toyota RAV4 has the largest insurance cost disparity among the cars analyzed, while the Tesla Model Y has the smallest. Insurance costs for the Toyota RAV4 are 16.4% higher in Black-majority ZIP codes versus white-majority ZIP codes. This increases to 33.9% for areas with at least 70% Black residents compared to areas with at least 70% white residents. Meanwhile, premiums for the Tesla Model Y are 14.0% higher in Black-majority areas and 29.5% higher in areas where the Black population is at least 70%.
- By insurer, Geico has the largest insurance cost disparity, while Farm Bureau has the smallest. Geico insurance premiums are 33.5% higher in Black-majority ZIP codes compared to white-majority ZIP codes, rising to a whopping 63.3% in areas with at least 70% Black residents compared to areas with 70% white residents. Meanwhile, Farm Bureau premiums are 6.5% higher in Black-majority areas and 15.6% higher in predominantly Black areas.
Auto insurance costs 11.1% more in Black-majority areas in Georgia
For consistency across our findings, we analyzed an employed 30-year-old male driver with good credit, a clean driving record and a high school diploma. The findings are based on the five most popular cars in Georgia, according to Edmunds. (See the methodology for details.)
When comparing this driver and these car models across Georgia ZIP codes, we found that auto insurance costs $3,537 annually on average — a figure that rises to $3,929 in areas where 50% or more of the population is Black.
That means auto insurance costs 11.1% more in Black-majority areas in Georgia.
Auto insurance premiums in Black-majority areas in Georgia vs. average premiums across all Georgia ZIP codes
Car make/model | Average premiums in Georgia ZIP codes with 50% or more Black residents | Average premiums across all Georgia ZIP codes | Difference (%) | Difference ($) |
|---|---|---|---|---|
| 2023 Ford F-150 XL | $3,643 | $3,268 | 11.5% | $375 |
| 2023 Chevrolet Silverado 1500 WT | $3,534 | $3,169 | 11.5% | $365 |
| 2023 Toyota RAV4 LE | $3,367 | $3,017 | 11.6% | $350 |
| 2023 Tesla Model Y Long Range | $5,283 | $4,802 | 10.0% | $481 |
| 2023 Toyota Camry LE | $3,819 | $3,427 | 11.4% | $392 |
| Average across 5 makes/models | $3,929 | $3,537 | 11.1% | $392 |
Source: ValuePenguin analysis of Quadrant Information Services and U.S. Census Bureau data.
That figure ranges from 10.0% for the Tesla Model Y to 11.6% for the Toyota RAV4.
The disparity is even larger in Georgia areas with 70% or more Black residents. Here, the average premium is $4,423 — meaning it costs just over a quarter (25.1%) more to insure a car in these areas.
Auto insurance premiums in predominantly Black areas in Georgia vs. average premiums across all Georgia ZIP codes
Car make/model | Average premiums in Georgia ZIP codes with 70% or more Black residents | Average premiums across all Georgia ZIP codes | Difference (%) | Difference ($) |
|---|---|---|---|---|
| 2023 Ford F-150 XL | $4,098 | $3,268 | 25.4% | $830 |
| 2023 Chevrolet Silverado 1500 WT | $3,990 | $3,169 | 25.9% | $821 |
| 2023 Toyota RAV4 LE | $3,803 | $3,017 | 26.1% | $786 |
| 2023 Tesla Model Y Long Range | $5,917 | $4,802 | 23.2% | $1,115 |
| 2023 Toyota Camry LE | $4,306 | $3,427 | 25.6% | $879 |
| Average across 5 makes/models | $4,423 | $3,537 | 25.1% | $886 |
Source: ValuePenguin analysis of Quadrant Information Services and U.S. Census Bureau data.
Insurers aren’t allowed to use race as a factor to determine auto insurance rates. However, drivers living in predominantly minority ZIP codes often pay more across the U.S., according to ProPublica. And our analysis shows this is present in Georgia.
ValuePenguin auto insurance expert Divya Sangameshwar says insurers attribute other factors to these rate disparities.
"Insurers attribute this to the perceived costs from a higher likelihood that residents will file a claim in these neighborhoods," she says. "Even motorists with a clean driving record who may have never filed a claim pay more because of the place they live in."
Disparity rises when comparing rates in Black-majority vs. white-majority areas
That’s not where the discrepancies end. The difference in average premiums is even larger when comparing white-majority areas to Black-majority areas. In Georgia ZIP codes where the population is 50% or more white, car insurance costs $3,398 on average. That means insurance is 15.6% more expensive in Black-majority areas in Georgia than in white-majority areas.
Those discrepancies range from 14.0% for the Tesla Model Y to 16.4% for the Toyota RAV4.
Auto insurance premiums in Black-majority areas in Georgia vs. white-majority areas in Georgia
Car make/model | Average premiums in Georgia ZIP codes with 50% or more Black residents | Average premiums in Georgia ZIP codes with 50% or more white residents | Difference (%) | Difference ($) |
|---|---|---|---|---|
| 2023 Ford F-150 XL | $3,643 | $3,138 | 16.1% | $505 |
| 2023 Chevrolet Silverado 1500 WT | $3,534 | $3,039 | 16.3% | $495 |
| 2023 Toyota RAV4 LE | $3,367 | $2,892 | 16.4% | $475 |
| 2023 Tesla Model Y Long Range | $5,283 | $4,634 | 14.0% | $649 |
| 2023 Toyota Camry LE | $3,819 | $3,289 | 16.1% | $530 |
| Average across 5 makes/models | $3,929 | $3,398 | 15.6% | $531 |
Source: ValuePenguin analysis of Quadrant Information Services and U.S. Census Bureau data.
Expanding that look to predominantly Black versus predominantly white areas in Georgia, average auto insurance rates are 32.4% higher in areas where at least 70% of the population is Black.
For predominantly Black areas, the average annual premium is $4,423. In predominantly white areas, that figure is $3,342 — meaning those in predominantly Black ZIP codes pay $1,081 more.
Auto insurance premiums in predominantly Black areas in Georgia vs. predominantly white areas in Georgia
Car make/model | Average premiums in Georgia ZIP codes with 70% or more Black residents | Average premiums in Georgia ZIP codes with 70% or more white residents | Difference (%) | Difference ($) |
|---|---|---|---|---|
| 2023 Ford F-150 XL | $4,098 | $3,082 | 33.0% | $1,016 |
| 2023 Chevrolet Silverado 1500 WT | $3,990 | $2,984 | 33.7% | $1,006 |
| 2023 Toyota RAV4 LE | $3,803 | $2,840 | 33.9% | $963 |
| 2023 Tesla Model Y Long Range | $5,917 | $4,570 | 29.5% | $1,347 |
| 2023 Toyota Camry LE | $4,306 | $3,232 | 33.2% | $1,074 |
| Average across 5 makes/models | $4,423 | $3,342 | 32.4% | $1,081 |
Source: ValuePenguin analysis of Quadrant Information Services and U.S. Census Bureau data.
Discrepancies range from 29.5% for the Tesla Model Y to 33.9% for the Toyota RAV4.
According to Sangameshwar, there are a few factors at play.
"While insurers can’t discriminate based on race, the gap in rates between Black- and white-majority ZIP codes reflects an underlying or unconscious bias in the way insurers calculate risk," she says. "It’s also a reflection of the broader socioeconomic factors that come into play when determining risk, including higher poverty rates among Black Americans and a perception of more crime in Black-majority neighborhoods."
Toyota RAV4 is 33.9% more expensive to insure in predominantly Black Georgia areas
Looking by car model among the five we analyzed, the Toyota RAV4 has the largest insurance cost disparity by percentage difference. Insurance costs for the Toyota RAV4 are 16.4% higher in Black-majority Georgia ZIP codes versus white-majority Georgia ZIP codes and 33.9% when comparing predominantly Black and predominantly white areas in the state.
By dollar amount, however, the differences are $475 in Black-majority areas and $963 in predominantly Black areas — the lowest by car make. Despite the price disparity, the Toyota RAV4 is still the cheapest to insure among both Black and white Americans in Georgia.
Conversely, premiums for the Tesla Model Y are 14.0% higher in Black-majority areas and 29.5% higher in areas where the Black population is at least 70% — the lowest by percentage difference. However, the Tesla Model Y is the most expensive to insure among Black and white Americans. In dollars, the cost discrepancy between Black-majority and white-majority ZIP codes is $649, and the disparity is $1,347 between predominantly Black and predominantly white areas — the highest by dollar amount.
Geico has biggest insurance disparity in Georgia
Turning to the 10 largest Georgia insurers with available data, Geico has the largest cost disparity. In Black-majority ZIP codes, Geico auto insurance costs $4,051 on average, while it costs $3,034 in white-majority ZIP codes. That’s a difference of 33.5%, or $1,017.
In Georgia areas with at least 70% Black residents, Geico's cost rises to $4,860, while it shrinks to $2,977 in areas with at least 70% white residents. That’s a staggering 63.3% increase for Black Americans, or $1,883.
Auto insurance premiums by company in Black-majority areas in Georgia vs. white-majority areas in Georgia
Rank | Insurance company | Average premiums in Georgia ZIP codes with 50% or more Black residents | Average premiums in Georgia ZIP codes with 50% or more white residents | Difference (%) | Difference ($) |
|---|---|---|---|---|---|
| 1 | Geico | $4,051 | $3,034 | 33.5% | $1,017 |
| 2 | Progressive | $4,098 | $3,373 | 21.5% | $725 |
| 3 | USAA | $2,786 | $2,341 | 19.0% | $445 |
| 4 | State Farm | $4,054 | $3,440 | 17.8% | $614 |
| 5 | Country Financial | $2,565 | $2,218 | 15.6% | $347 |
| 6 | Allstate | $4,941 | $4,279 | 15.5% | $662 |
| 7 | Nationwide | $4,968 | $4,401 | 12.9% | $567 |
| 8 | Auto-Owners | $2,347 | $2,083 | 12.7% | $264 |
| 9 | Farmers | $7,335 | $6,799 | 7.9% | $536 |
| 10 | Farm Bureau | $2,147 | $2,016 | 6.5% | $131 |
Source: ValuePenguin analysis of Quadrant Information Services and U.S. Census Bureau data. Note: Rankings are based on the percentage difference.
Conversely, Farm Bureau premiums have the smallest increase. In Black-majority areas, Farm Bureau premiums average $2,147, while that figure is $2,016 in white-majority areas. That’s a difference of 6.5%, or $131.
In predominantly Black areas, Farm Bureau's rates increase to $2,312, while they decrease to $2,000 in predominantly white areas. That means the company's rates are 15.6% higher in predominantly Black areas, or $312 higher.
Auto insurance premiums by company in predominantly Black areas in Georgia vs. predominantly white areas in Georgia
Rank | Insurance company | Average premiums in Georgia ZIP codes with 70% or more Black residents | Average premiums in Georgia ZIP codes with 70% or more white residents | Difference (%) | Difference ($) |
|---|---|---|---|---|---|
| 1 | Geico | $4,860 | $2,977 | 63.3% | $1,883 |
| 2 | Progressive | $4,751 | $3,309 | 43.6% | $1,442 |
| 3 | State Farm | $4,597 | $3,378 | 36.1% | $1,219 |
| 4 | USAA | $3,096 | $2,312 | 33.9% | $784 |
| 5 | Nationwide | $5,675 | $4,323 | 31.3% | $1,352 |
| 6 | Allstate | $5,518 | $4,213 | 31.0% | $1,305 |
| 7 | Country Financial | $2,760 | $2,161 | 27.7% | $599 |
| 8 | Auto-Owners | $2,547 | $2,052 | 24.1% | $495 |
| 9 | Farmers | $8,115 | $6,692 | 21.3% | $1,423 |
| 10 | Farm Bureau | $2,312 | $2,000 | 15.6% | $312 |
Source: ValuePenguin analysis of Quadrant Information Services and U.S. Census Bureau data. Note: Rankings are based on the percentage difference.
With this in mind, Sangameshwar says it’s important for Black Americans in Georgia to be aware of this huge variation in premiums. "Shopping around for the best rate is more important than ever," she says. "In Georgia, drivers can save as much as 54% by shopping around — a bonus for families trying to make ends meet."
Finding affordable auto insurance: Top expert tips
As we approach 2025, almost every driver will see their auto insurance rates rise — and for those already paying a lot, this can be daunting. Beyond shopping around, Sangameshwar offers the following advice:
- Ask about discounts. "Discounts aren’t always advertised, so being proactive and advocating for yourself is key," she says. You can save anywhere from 5% to up to 40% with the right discount.
- Increase your deductibles. "Increasing your deductible for collision and comprehensive insurance is another easy money-saving tip," she says. "For example, increasing your deductible from $50 to $1,000 could save you 56% on your comprehensive and collision coverage policy."
Methodology
ValuePenguin researchers analyzed insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Prices are shown for comparative purposes only. Your own rates may be different.
This study presents the average annual costs of a full-coverage insurance policy from the 10 largest insurance companies available in Quadrant, across all ZIP codes in Georgia. Quotes are for a full-coverage policy for a 30-year-old employed man with good credit, a high school diploma and a clean driving record. For car models, we analyzed the top five most popular cars in Georgia, according to Edmunds. These include:
- 2023 Ford F-150 XL
- 2023 Chevrolet Silverado 1500 WT
- 2023 Toyota RAV4 LE
- 2023 Tesla Model Y Long Range
- 2023 Toyota Camry LE
Full-coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Collision: $500 deductible
- Comprehensive: $500 deductible
Researchers used data from the U.S. Census Bureau 2022 American Community Survey with five-year estimates to identify ZIP codes in Georgia where Black Americans (or white Americans) make up at least 50% of the population and at least 70% of the population.