A recent article in the Lawrence Eagle-Tribune shines a light on “redlining” practices of insurance companies writing auto insurance in Massachusetts and other states. The state bans the practice of setting discriminatory auto insurance rates. But the article points out that subtle discrimination is still occurring, with communities with significant minority populations paying higher rates for auto coverage.
According to the article, a report published by Consumer Reports magazine, “examined premiums and payouts. In some cases, major insurers charged premiums that were 30 percent higher in minority ZIP codes than comparable non-minority neighborhoods.”
Several measures are underway in the Massachusetts legislature to further study the problem and to promote laws banning the practice.