A “shocking trend” of people from ethnic minority backgrounds paying hundreds of pounds a year more for their car insurance than white people has been highlighted by Citizens Advice.
As part of a year-long investigation, the charity analysed 18,000 car insurance costs reported by people across England and Wales who came to Citizens Advice for debt help in 2021. It found that, on average, people from ethnic minority backgrounds paid £250 a year more than white people – regardless of gender, age and income.
The Association of British Insurers (ABI) said insurers never use ethnicity as a factor when setting prices but it recognises the charity’s report “raises an important public policy debate”. Citizens Advice also carried out 649 mystery shops in England using six personas across eight postcodes.
