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Discriminatory Pricing: One Year On

30 March 2023

Discriminatory Pricing: One Year On [ 1.3 mb]

One year on, our most recent data highlights that people of colour are still on average paying £250 more than white people for car insurance. We termed this the ‘ethnicity penalty’ because of the worrying relationship between ethnicity and price that emerged in our research. 

This is particularly concerning as new evidence suggests that racially minoritised groups are especially vulnerable to the effects of the cost of living crisis. With bills rising across the board, our data shows people of colour are three times more likely than white people to cancel car insurance as they can no longer afford to keep the car running. 

We simply can’t risk markets inflicting an ethnicity penalty on top of a poverty premium - a combination that is leaving people of colour with less money in their pocket at a time when bills are skyrocketing. That’s why Citizens Advice is urgently calling for the FCA to start monitoring insurance pricing across ethnicity themselves and prioritise holding the firms that aren’t taking action against this difference in pricing to account.