A new study has revealed that Black drivers pay an average of £300 more for car insurance than white motorists in the UK.
According to the study, Blacks are the most affected of minority ethnic groups who pay an average of £250 more overall.
Citizens Advice which analysed the car insurance costs of over 15,000 people it helped, discovered that firms were charging people of colour 40% more.
While the Association of British Insurers claims its members never use ethnicity in setting prices, however, Citizens Advice said the cover is costlier in areas with large communities of colour. People of colour are thought to have spent £180m more than white people on car premiums in 2022.
The Financial Conduct Authority has been asked to commence an investigation if firms cannot explain these variations.
The FCA said: “We will continue to raise concerns with the industry to ensure they are serving all customers fairly.” Dame Clare Moriarty, of Citizens Advice, added “This ethnicity penalty is an unfair burden.