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Ames’ Auto Insurance Regulations — Racial Disparities in Insurance Premiums

 Da Lin   Published: August 2017
Product number:
95 Pages
Product Type:
Workshop-Based Case Study

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The Ames’ Auto Insurance Regulations – Racial Disparities in Insurance Premiums (“Discrimination”) case study examines racial disparities in the cost of auto insurance in the fictional U.S. state of Ames.  Although a fictional case study, Discrimination provides an overview of the actual practices in the U.S. auto insurance industry and arguments for and against insurance regulation. 

Although all drivers in Ames are required to purchase basic liability coverage, recent studies have found that drivers living in minority communities are charged higher insurance premiums than similar drivers living in predominantly white neighborhoods. Students play the role of Senior Trial Counsel in the Consumer Protection Division of the Ames Attorney General’s Office.  Students are asked to determine whether regulatory changes are needed to ensure fair and reasonable rates for all consumers in Ames, and if so, consider various options for regulatory changes and examine the arguments for and against them.

This case study is used in a simulation course on Financial Regulation and is helpful as a practical, hands-on component to a financial regulations or administrative law course.

Learning Objectives

  • Develop an understanding of consumer access to financial products such as home mortgages and auto loans.
  • Evaluate arguments and evidence on whether racial discrimination plays a role in determining access to such products.
  • Examine possible remedies to racial disparities in financial products and the pros and cons of each.
  • Practice presentation and legal writing skills.

Subjects Covered

Consumer financial products, auto insurance, racial discrimination, regulation of consumer financial products, Attorney General, state regulation, government.  


Geographic: US

Industry: Consumer Financial Products

Event Year Begin: 2017 

Hard Copy

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