The data indicates that Asians are better drivers who pay lower insurance rates than members of other ethnic groups.
Persons of Asian heritage are less likely to drink and drive, get into accidents, and die in accidents than whites, African-Americans, Native Americans, or Hispanics, a 2006 survey by the National Highway Transportation Safety Administration (NHTSA) discovered. The study separated US drivers into six heritage categories and calculated Asians were the safest drivers.
Asians had the lowest fatality rate of the groups surveyed, the NHTSA estimated. For every 100,000 Asian drivers on the road in the United States, just four were killed in accidents. In contrast, both African-Americans and Hispanics had a fatality rate that was three times higher; or around 12 fatalities per 100,000 drivers on the road.
One reason why Asians were safer behind the wheel was less drinking and driving. Alcohol was a factor in 36% of fatal accidents involving Hispanics and 31% of deadly wrecks that involved whites and African-Americans, the NHTSA determined. In contrast, alcohol was only involved in 22% of the deadly accidents, involving Asian-American drivers.
Do Asians Pay Less for Car Insurance?
Not surprisingly, there is data that indicates Asians pay less for auto insurance than members of other ethnic groups in the United States.
The average American will pay around $907.38 a year; or $75.62 a month, for car insurance in 2018, Value Penguin calculated. The average Asian-American will pay around $816 a year; or $68 a month, for car insurance in 2018, 4AutoInsuranceQuote.com calculated.
The average Asian-American pays around $7.62 a year or $91.44 less for car insurance, 4AutoInsuranceQuote.com estimated. That made for a small, but noticeable savings. The savings are small; because contrary to popular belief, accident rates are not the biggest factor in setting auto insurance rates.
Strangely enough, it is state law that has the biggest effect on car-insurance rates. Michigan has the highest auto-insurance rates in the nation, because of its unusual laws; the average resident of that state pays around $2,600 a year to insure a vehicle, Michigan Radio reported. That rate is more than two and a half times the national average.
Other factors that can affect auto-insurance rates are geographic location, age, the value of the vehicle, and driving history. Unfortunately, many of these factors are beyond the control of the drivers.
Do African-Americans Pay more for Auto Insurance?
There is no evidence that individual African Americans pay more for auto insurance. Unfortunately, there is data that indicates it costs more to insure a vehicle in African American neighborhoods.
Drivers who lived in mostly African-American neighborhoods paid around $1,060 a year to insure a vehicle, a study by the Consumer Federation of American determined. That was around $152.62 more a year, but the study found that all residents of such neighborhoods paid the same rate.
The city of Detroit; where the population is 82% African-American, has the nation’s highest car insurance rates. The average Detroit resident pays $5,414 a year for auto insurance, Michigan Radio reported.
Inner-city drivers that lived in majority African-American zip codes paid $1,797 a year for car insurance, compared to drivers in majority zip codes who paid $1,126 a year for auto insurance, 4AutoInsuranceQuote.com estimated. That was a difference of around 60%.
Geography determines what you will pay for Auto Insurance
The data indicates that geography and demographics (the racial composition of an area) have the biggest effect on auto insurance rates. That effect is magnified by state laws; such as those in Michigan that require auto insurers to pay accident victims’ medical bills for life.
The average resident of Ohio pays $726 a year; or $181.38 less than the national average for auto insurance, Value Penguin calculated. A typical Ohio resident pays around $61 month for auto insurance; while a person just across the state line in Michigan pays $216.67 a month in premiums.
The bottom line is that auto insurance rates are not fair. Millions of people are paying more because of their zip code; the side of the state line they live on, and the actions of their state legislators.
Fortunately, you can mitigate auto-insurance prices, by shopping around and refusing to settle for the first offer you get. Most people can pay less for car insurance if they are willing to spend a little time shopping for it.