Illinois Secretary of State starts compaign to prevent unfair auto insurance ratemaking

Illinois Secretary of State Alexi Giannoulias has launched a statewide campaign focused on preventing insurance companies from using socioeconomic data to charge residents higher auto insurance rates. 

This data could include credit scores, zip codes, and age, according to a press release. 

The “Driving Change” campaign is asking state residents to share their stories about unfair and discriminatory ratemaking practices used by auto insurance companies. The campaign was launched in Chicago’s Bronzeville neighborhood, and then AARP Illinois and multiple state legislators joined. 

“As Secretary of State, I strongly believe that an individual’s driving record should serve as the primary factor that’s analyzed when setting auto insurance rates,” Giannoulias said. “Insurance companies need to implement a ratemaking process that’s fair and transparent. The current system results in fewer Illinoisans being able to afford insurance and fewer opting to pay for it, making our roads less safe for everyone.” 

Philippe Largent, state director for AARP Illinois, said in the release that older drivers in Illinois are the safest drivers and their premiums should reflect that. 

“On behalf of our 1.7 million members across the state, we applaud Secretary Giannoulias for his interest in finding a ratemaking process that does not discriminate against drivers for their age,” Largent said. “And we look forward to working with his office, the insurance industry, and the General Assembly to develop criteria that ensure Illinois’ safe drivers are not penalized for non-driving related factors. They deserve rates that are as low and fair as possible.”

A website has been launched to educate the public and provide an option for residents to share their stories about unfair and discriminatory ratemaking practices by insurance companies. It also provides residents with the option to email their state representatives and senators to urge them to support reform. 

Giannoulias will also be holding a series of town hall meetings as part of the campaign: 

• • Aug. 20 – Chicago, South Side
  • Aug. 26 – South Suburbs
  • Sept. 3 – Metro East
  • Sept. 17 – Champaign
  • Sept. 22 – Chicago, West Side
  •  Sept. 24 – Peoria
  • Oct. 1 – Rockford
  • Oct. 15 – Springfield

For more information on the meetings, click here. 

“Illinois-focused studies have revealed ratemaking inequities and disparities, including insurers, on average, increasing rates on senior drivers and charging consumers with a safe driving record and poor credit hundreds of dollars more than someone with a DUI conviction and excellent credit,” the release says. “As a result, drivers from disadvantaged neighborhoods and communities of color disproportionately suffer.”

According to the campaign website, a driver with a clean driving record but poor credit will pay $862 more annually than a driver with excellent credit and a DUI conviction. 

Safe drivers living in minority zip codes were also charged rates at least 10% higher compared with those in non-minority zip codes, according to the website. 

It also says that those aged 75 years old pay 25% more than 60-year-old drivers, despite having among the lowest crash rates of any age group. 

The release also states that the campaign is coming as insurance rates for both homes and automobiles are skyrocketing, with a recent study from Insurify finding that Illinois auto insurance rates have increased by 18% in 2024 and are projected to increase another 4% in 2025. This would bring the annual average cost of full coverage to $2,050. 

According to the release, new tariffs are expected to cause auto parts prices to climb and result in insurance rates soaring even higher. 

“Like most states, Illinois requires every vehicle owner to buy insurance, but it is one of only two states – along with Wyoming – that doesn’t require prior rate review to protect insurance customers from excessive or unfair rates,” the release says. 

Illinois Gov. JB Pritzker has created a stir in the state regarding property and casualty insurance after State Farm hiked homeowners insurance by 27.2% last month. He directed the General Assembly to enact a legislative solution during veto session that “prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes.” 

The Chicago Tribune says it’s likely that an amended bill filed in January by Sen. Michael Hastings is the “starting point for any debate on the issue.” The legislation would establish a rate review process for auto and homeowner insurance. The newspaper says it will likely be discussed by lawmakers when they reconvene in Springfield in October for the two-week veto session. 

The bill, SB0268, states it would limit unjustified increases in homeowners and automobile insurance premiums, ensure transparency in rate-setting practices, and grant the Department of Insurance greater oversight authority to protect consumers.

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