Take Dimitrius and Mona Lisa Wilson. Not counting a $25,000 city subsidy, they paid about $79,000 for their new East Side home nearly five years ago, and that's what it was assessed at. But the insurance company, New York Central Mutual, pegged replacement cost at $160,000, and based the insurance policy accordingly.

The Wilsons paid $500 a year - not bad for a $160,000 home. But insurance on a $79,000 home would be $150 less.

Making matters worse, the sad reality is that new homes, such as the one the Wilsons owned, don't maintain value on the crime-ridden, low-income East Side. So they were paying insurance for a $160,000 home that would eventually sell for far less than the $79,000 they paid.

A study by Rochester's Empire Justice Center found similar problems in the 50 households it reviewed in Rochester. Consumers in areas with more minority residents, lower incomes and lower housing values pay higher home insurance premiums and have less coverage than in other areas, according to the center's 2005 report.

The Wilsons' car insurance is also expensive. They bought a 1996 Chevrolet Lumina in 2004 and pay $1,136 a year to insure it through Lincoln General Insurance Co. of Long Island, even with no accidents on their record. They have just the required insurance under state law, without collision coverage.

That's nearly $400 more than the average rate for such coverage in Buffalo and $600 higher than in the suburbs.

The difference in auto rates between the city and suburbs in the Buffalo area is well-documented, with gaps of several hundred dollars between the two, depending on the insurer.

Some insurers also charge different rates within the city. Allstate Corp., the state's biggest home and auto insurer, has eight auto territories in Erie County, including three in Buffalo, each with different rates.

In one Buffalo zone, the median household income averages $17,145. In the second, it's $23,679, and the third, $36,138.

The Buffalo News found that a driver with average credit and a good driving record would pay $240 less per year in the wealthier zone than in the others.

"Private carriers know that different ZIP codes have more or less police patrols and security," said Craig Willoughby, owner of Willoughby Insurance, an agency serving consumers with bad driving and credit records.

Beyond geography, credit history also dictates auto insurance rates. The Wilsons had bad credit.

Insurers associate good credit with responsible consumers, and most states sanction this. Many homeowner insurers won't cover some consumers with bad credit, although the industry is backing off somewhat.

Allstate in early June settled a lawsuit accusing it of discrimination against minorities. The nation's No. 2 home and auto insurer agreed to use a new formula to set premiums, take unusual circumstances into account and reimburse black and Hispanic customers up to $150 if their premiums are lower under the new system.

"A credit check will always have a disproportionately negative effect on a low-income person who simply has had fewer resources over the years and has operated on a tighter margin," said Scott W. Gehl, executive director of Housing Opportunities Made Equal, a fair-housing group in Buffalo.

- Jonathan D. Epstein