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The Guardian - UK
The Guardian - UK
Business
Rupert Jones

People of colour may face ‘ethnicity penalty’ on car insurance in England

Toy car on top of motor insurance renewal letters
The charity found quotes in areas with large proportions of black or south Asian people were at least £280 higher than quotes in largely white postcodes. Photograph: Rosemary Roberts/Alamy

Hundreds of thousands of people of colour may be paying an “ethnicity penalty” of at least £280 a year each in higher car insurance costs, an investigation by Citizens Advice has claimed.

The national charity said its year-long investigation had uncovered a “shocking trend” of people of colour paying a lot more for motor cover than white people, and that the penalty was up to £950 in some locations.

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