7
ENDNOTES
1 The Zebra. “2021 State of Auto Insurance.” (2021). https://www.thezebra.
com/state-of-insurance/auto/2021/#introduction Some rates in this
brief, both for Michigan and Detroit, differ from rates cited in Poverty
Solutions' 2019 auto insurance policy brief. This is because the Zebra's
current year reports only use data from just over half of a calendar year.
In later reports, the Zebra revises prior year numbers after generating
an entire year's worth of quotes.
2 The Zebra. “2021 State of Auto Insurance.”; Patrick Cooney, Elizabeth
Phillips, and Joshua Rivera, “Auto Insurance and Economic Mobility in
Michigan,” (March 2019). https://poverty.umich.edu/files/2019/05/auto_
insurance_and_economic_mobility_in_michigan_2.pdf
3 Patrick Cooney, Elizabeth Phillips, and Joshua Rivera, “Auto Insurance
and Economic Mobility in Michigan,” (March 2019).
4 Patrick Cooney, Elizabeth Phillips, and Joshua Rivera, “Auto Insurance
and Economic Mobility in Michigan,” (March 2019).
5 See, for example: Richard Rothstein, The Color of Law. (Liveright, New York,
2017); Marianne Bertrand and Sendhil Mullainathan, “Are Emily and Greg
More Employable than Lakisha and Jamal? A Field Experiment on Labor
Market Discrimination,” National Bureau of Economic Research (July
2003); Sean F. Reardon, School Segregation and Racial Achievement Gaps.
The Russell Sage Foundation Journal, Vol. 2, No. 5, (September 2016).
6 We also conducted a regression analysis to understand the extent to
which the racial makeup of a zip code explains auto insurance rates in
that zip code relative to other factors, such as population density and
poverty. In all of the models, for both 2019 and 2020, race is the dominant
correlate with rates. While the explanatory power of the model increases
slightly when other factors are included, the impact of race is much
larger than any other factor.
7 Authors’ analysis of auto insurance data from The Zebra.
8 MCL, §500.3107c (2019).
9 MCL, §500.3107c (2019).
10 MCL, §500.2111(4) (2019), For a comprehensive summary of the law see:
https://www.michigan.gov/AutoInsurance
11 Patrick Cooney, Elizabeth Phillips, and Joshua Rivera, “Auto Insurance
and Economic Mobility in Michigan,” (March 2019).
12 MCL, §500.3157 (2019).
13 The Zebra. “2021 State of Auto Insurance.”
14 Patrick Cooney, Elizabeth Phillips, and Joshua Rivera, “Auto Insurance
and Economic Mobility in Michigan,” (March 2019).
15 The Zebra. “2021 State of Auto Insurance.”
16 The Zebra. “2021 State of Auto Insurance.”
17 JC Reindl, “New Michigan Auto Insurer Doesn't Use Credit Scores,
Charges Lower Rates,” Detroit Free Press, July 9, 2021. https://www.
freep.com/story/money/business/2021/07/09/michigan-cure-auto-
insurance-credit-scores/7880516002/
18 Anna Liz Nichols, “Car Crash Victims Could Lose Care Under New
Rules,” Detroit Free Press, May 29, 2021. https://www.detroitnews.com/
story/news/local/michigan/2021/05/29/car-crash-victims-lose-rehab-
coverage-michigan-insurance-reform/116678586/; Tracy Samilton,
“Some Insurance Companies Have Stopped Paying Healthcare Providers
for Auto Accident Survivors,” Michigan Radio, September 6, 2021. https://
www.michiganradio.org/law/2021-09-06/some-insurance-companies-
have-stopped-paying-healthcare-providers-for-auto-accident-survivors
19 MCL, §500.2151 (2019).
20 The correlation coefficient for both years is 0.76. Estimates for percent
Black in each zip code are from the authors’ analysis of 2019 American
Community Survey 5-year averages.
21 David E. Clark and Brad M. Cushing, “Rural and urban traffic fatalities,
vehicle miles, and population density,” Accident Analysis & Prevention,
Vol. 36:6, (November 2004):967-972. https://doi.org/ 10.1016/j.
aap.2003.10.006; Congressional Budget Office, Geographic Variation
in Health Care Spending. Publication No. CBO-2978, February 2008;
Insurance Information Institute, “2020 Insurance Fact Book,” (2021).
https://www.iii.org/search/node/2020%20Insurance%20Fact%20
Book; Janet L. Kaminsky, Territorial Rating for Auto Insurance. Office of
Legislative Research, State of Connecticut, September 2006. https://
www.cga.ct.gov/2006/rpt/2006-R-0542.htm
22 Jeff Larson, Julia Angwin, Lauren Kirchner, Surya Mattu, Dina Haner,
Michael Saccucci, Keith Newsom-Stewart, Andrew Cohen, and Martin
Romm, “How We Examined Racial Discrimination in Auto Insurance
Prices,“ ProPublica, April 5, 2017. https://www.propublica.org/article/
minority-neighborhoods-higher-car-insurance-premiums-methodology
23 Janet L. Kaminsky, Territorial Rating for Auto Insurance. Office of
Legislative Research, State of Connecticut, September 2006.
24 NJ Rev Stat § 17:29A-48 (2019).
25 Cal Ins Code § 11628(a)(2) (2012).
26 10 CA Code of Regs 2632.
27 Conn. Gen. Stat. § 38a-686 (2013).
28 Michelle Singletary “Credit scores are supposed to be race-neutral.
That’s impossible.” The Washington Post, October 16, 2020. https://www.
washingtonpost.com/business/2020/10/16/how-race-affects-your-
credit-score/
29 “The Truth About Car Insurance,” Consumer Reports, July 30, 2015.
https://www.consumerreports.org/cro/car-insurance/auto-insurance-
special-report/index.htm
30 “Personal Injury Protection Insurance (PIP)”, The Zebra, accessed
October 31, 2021. https://www.thezebra.com/auto-insurance/insurance-
guide/pip-insurance/
31 NJ Rev Stat § 39:6A-4.3 (2013).
32 NJAC § 11:3-29.4, Appendix, Exhibit 1 (2020), FL Stat § 627.736 (2012), NY
Ins Law § 28.5108 (2014), HI Rev Stat §431:10C-308.5 (2012), 31 PA Code
§69.21.
33 MCL §500.3157 (2019).
34 Carol Thompson, “I don’t think I’ve been this stressed’: No-fault
reforms upend life for Michigan’s crash victims,” The Detroit News,
July 27, 2021. https://www.detroitnews.com/story/news/local/
michigan/2021/07/28/no-fault-reforms-upend-life-michigan-crash-
victims-families/8043469002/
35 NJ Rev Stat §39.6A-4.6 (2013).
36 31 PA Code §69.21.
37 Carol Thompson, “’I don’t think I’ve been this stressed’: No-fault reforms
upend life for Michigan’s crash victims.”
38 The U.S. Treasury Department’s Federal Insurance Office deems auto
insurance “unaffordable” in areas where premiums exceed 2 percent
of a ZIP code’s median household income. See: U.S. Treasury Federal
Insurance Office, Study on the Affordability of Personal Automobile
Insurance, January 2017. https://www.treasury.gov/initiatives/fio/
reports-and-notices/Documents/FINAL%20Auto%20Affordability%20
Study_web.pdf
39 The California Code of Regulations, 10 CCR § 2632.5. h t t p s : / / g o v t . w e s t l a
w . c o m / c a l r e g s / D o c u m e n t / I 3 5 9 6 7 4 A 0 D 4 9 2 1 1 D E B C 0 2 8 3 1 C 6 D 6 C 1 0 8 E ? c o n
t e x t D a t a = ( s c . D e f a u l t ) & o r i g i n a t i o n C o n t e x t = d o c u m e n t t o c & t r a n s i t i o n T y p e =
D o c u m e n t I t e m & v i e w T y p e = F u l l T e x t