Georgia drivers can pay more for car insurance based on ZIP code

Georgians with a stellar driving record can still face high car insurance premiums based on their ZIP code. 

An analysis by InsuranceQuotes.com found that drivers who live in southwest Atlanta neighborhoods can pay nearly $3,700 a year for full coverage with no tickets or accidents on their record. That’s about $1,100 to $1,500 more than what the same driver would pay in Sandy Springs or Alpharetta ZIP codes. 

Bridget Cunningham said she has experienced this disparity first hand.

“A couple of friends that don’t live in the ZIP code, like the Buckhead area or Sandy Springs area, same age range, same credit score range, it’s the ZIP code that’s different,” Cunningham said. “And their insurance expense is lower, a lot lower.”

Insurance agent and consumer advocate Raphael Baker said using neighborhood boundaries and credit scores to set premiums is similar to redlining in the real estate industry.

“With credit scores, of course, you know when it comes to getting credit cards, getting a mortgage, they tell a little bit about your financial stability, but since car insurance is something that you are mandated to have, that shouldn’t impact that,” Baker said. “Just because you’re poor doesn’t mean you should pay more. It has nothing to do with your driving, your driving history, and unfortunately, it affects predominantly Black neighborhoods the most.”

Georgia Insurance Commissioner-elect Keisha Waites said she wants to remove these factors from the criteria for insurance companies.

“Your rate should reflect how you drive, your record, your claims, the miles you put on your car, etc.,” Waites said in the statement, adding that “…in Georgia, a driver with a clean record, but poor credit can pay about twice as much for full coverage as a driver with good credit.”

However, any permanent ban on using ZIP codes and credit scores would have to pass through the Georgia General Assembly.