A neighborhood's racial composition affects Auto insurance prices, according to a report from the Consumer Federation of America. (Photo: Thinkstock)

Good drivers who live in predominantly black neighborhoods are being charged significantly higher premiums than similar drivers in white neighborhoods, even after accounting for population density and income levels, according to a report released last week from the Washington, D.C.-based Consumer Federation of America.

The nonprofit consumer advocacy group reviewed quotes by ZIP code from the five largest Auto insurers — Allstate, Farmers Insurance, Geico, Progressive and State Farm — and found that on average customers in black neighborhoods are quoted premiums that are 70% higher that drivers in white neighborhoods — $1,060 vs. $622.

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