Auto Insurance Redlining in the Inner City
Type
Article
Year
2004
Level
City or Town
State(s)
California
Policy Areas
Economic Justice, Public Safety, Transportation & Mobility
Higher insurance premiums are charged in low-income, minority neighborhoods due to higher accident rates, which are impacted by disproportionately high rates of traffic congestion in those areas. This article outlines how cities should implement policies to mitigate the impact of externally generated traffic in low-income neighborhoods to reduce accident rates and, consequently, insurance premiums. The financial burden on disadvantaged residents is exacerbated by the spatial structure and institutionalized practices of the city, leading to economic disparities.