INSURANCE

“Nationwide is committed to helping members protect what matters most to them and to providing appropriate, nondiscriminatory auto-insurance rates for customers,” Nationwide spokesman Eric Hardgrove said. “We develop our rates based on sound actuarial principles, relying on loss and expense experience and utilizing permissible and nondiscriminatory rating factors in compliance with each state’s rate-making laws.”

Lynch said the likely reason why premiums would be higher in one ZIP code than a neighboring one is that the ZIP codes with higher rates have more vehicles. More vehicles means more accidents, Lynch said.

“That makes a huge difference from one neighborhood to the others,” he said.

For the study, the CFA priced a policy for a 30-year-old single female with no accidents or tickets seeking state minimumliability coverage. She has a high school diploma, works as a bank teller and drives a 2008 Toyota Camry 10,000 miles a year.

The CFA obtained quotes in 10 cities from six insurers, including Nationwide and Mayfield Heights-based Progressive.

The group compared rates using the same sample driver in one higher-income ZIP code and in a neighboring, lower-income ZIP code. In some cases, the sample drivers lived within 100 yards of each other.

In Columbus, the CFA priced a policy for a sample driver who lives in the 5600 block of Indianola Avenue on the Worthington side of the railroad tracks, and for another driver living in the 600-700 block of Shore Drive on the Columbus side.

The CFA sent a letter to insurance commissioners in each of the states urging them to investigate and take action on behalf on drivers who are paying hundreds or even thousands of dollars more for insurance because of the neighborhood they live in.

Lynch said drivers dissatisfied with their coverage and costs should shop around.

“If you’re not happy with the price and service, you should be looking,” he said. “There’s lots of competition out there.”