This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Galster, G. Articles by Zimmermann, W. Search for Related Content Social Bookmarking                   What's this?

Testing for Discrimination in Home Insurance: Results from New York City and Phoenix

College of Urban, Labor, and Metropolitan Affairs, F/AB Room 3198, Wayne State University, Detroit, MI 48202, USA, George_Galster{at}wayne.edu

Douglas Wissoker

The Urban Institute, 2100 M Street NW, Washington DC20037, USA, dwissoke{at}ui.urban.org

Wendy Zimmermann

The Urban Institute, 2100 M Street NW, Washington DC20037, USA, Wzimmerm{at}ui.urbanorg

This paper examines the results of a paired testing study of neighbourhood-based discrimination in the provision of quotes for home insurance in New York City and Phoenix, Arizona. We examine whether agents treated insurance-seekers buying their first homes in moderate-income, predominantly black or Hispanic-occupied neighbourhoods differently from insurance-seekers in comparable predominantly white neighbourhoods. The study examines differences in whether a quote is provided, the type of insurance and policy options offered and the premium quoted. Overall, of 10 key measures (5 for each city), only 1 (optional replacement cost coverage on personal property in Phoenix) showed a statistically significant difference consistent with discrimination. Testers in Hispanic neighbourhoods of Phoenix were quoted premiums 12 per cent higher than those offered to testers in white neighbourhoods. This difference, however, is in line with the price schedules for the state-approved rating territories in which the white and Hispanic homes were located.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				S. L. Ross and J. Yinger Uncovering Discrimination: A Comparison of the Methods Used by Scholars and Civil Rights Enforcement Officials Am. Law Econ. Rev., September 1, 2006; 8(3): 562 - 614. [Abstract] [Full Text] [PDF]

				G. D. Squires and J. Chadwick Linguistic Profiling: A Continuing Tradition of Discrimination in the Home Insurance Industry? Urban Affairs Review, January 1, 2006; 41(3): 400 - 415. [Abstract] [PDF]