Black motorists are charged up to £300 more than their white counterparts, study shows

Black drivers pay an average of £300 more for car insurance than white motorists, research shows.

They are the worst affected of minority ethnic groups, who pay an average of £250 more overall.

People of colour are thought to have spent £180m more than white people on car premiums in 2022.

Citizens Advice analysed the car insurance costs of over 15,000 people it helped – finding that firms were charging people of colour 40% more.

The Association of British Insurers says members never use ethnicity in setting prices but Citizens Advice says that cover is costlier in areas with large communities of colour.

Citizens Advice says that insurance is costlier in areas with large communities of colour (Getty Images)

It called on the Financial Conduct Authority to act 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, said: “This ethnicity penalty is an unfair burden.

* Cover rose 21.1% in a year, to an aver-­­­ age £929, says Consumer Intelligence.