If you’ve been charged more for car insurance because of your age, credit score or ZIP code, Illinois Secretary of State Alexi Giannoulias wants to hear from you.
Giannoulias is partnering with AARP Illinois to collect stories of price discrimination based on “non-driving” factors, as they push for a legislative change in how car insurance is priced in the state. He’s planning a press conference Wednesday morning in Bronzeville with state legislators and AARP representatives to announce the effort, called “Driving Change.”
“Let’s base it on driving record,” Giannoulias said.
He said high car insurance prices could tempt people to illegally drive with no insurance. Insurance is required to legally drive in Illinois and every other state except New Hampshire.
“For me, this is a road safety issue and it’s also an economic justice issue,” he said.
People can share their stories and contact legislators by visiting Driving Change’s website. There will also be a series of town halls around the state, with exact times and locations to be posted later online. Locations include:
- Aug. 20 — 6 p.m. at Bright Star Church, 735 E. 44th St. in Grand Boulevard
- 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
Philippe Largent, state director of AARP Illinois, said in a statement that “older drivers in Illinois are the safest drivers, and their auto insurance rates should reflect this.”
“We look forward to working with [Giannoulias’] office, the insurance industry and the General Assembly to develop criteria that ensures Illinois’ safe drivers are not penalized for non-driving related factors. They deserve rates that are as low and fair as possible,” Largent said.
The use of non-driving, socioeconomic factors such as credit score, age, ZIP code, marital status, education, profession, home ownership and gender in determining auto insurance prices is controversial.
Consumer groups argue it can result in unfair situations such as a person with excellent credit but a DUI on their record getting a lower price for insurance than a person who has poor credit but is a safe driver.
A 2019 Sun-Times investigation found being a woman, living on the “wrong” side of two adjacent ZIP codes, renting rather than owning your home or working in an unskilled job could result in a higher price quote for car insurance, even when comparing two applicants who were both good drivers and have the same type of car.
Data analyzed last year by MarketWatch found the most expensive average annual auto insurance premium in Illinois for a married 35-year-old driver with a clean driving record and good credit was $2,643. It was in the ZIP code 60624, a majority Black area on the West Side.
The insurance industry said using many factors like someone’s credit score results in more accurate risk assessments. Insurance leaders have long argued that narrowing the data they use will result in higher prices for some drivers.
In a joint statement, the Illinois Insurance Association, American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies said they “fully support transparency in pricing” but “our top priority is preserving Illinois’ competitive insurance marketplace” of more than 200 insurance companies.
“Allowing insurers to continue using a wide set of objective criteria to determine risk and set rates will ensure this market can continue to flourish. We oppose efforts to limit the actuarial process that has driven companies out of other large states and led to increased premiums for the majority of policy holders,” the groups said.
They said insurers are already barred from using race, income, religion or ethnicity in setting rates in Illinois and nationwide.
But costs are going up. Giannoulias cited projections from comparison website Insurify showing that Illinois auto insurance rates increased 18% in 2024 and are expected to go up another 4% in 2025.
Attempts to pass legislation outlawing the use of non-driving factors to calculate car insurance costs have had limited success in Springfield.
Consumer advocates say drivers who believe they are paying too much should shop around and consider bundling their home and auto insurance to get discounts.
Good drivers can also get discounts by opting into their insurer’s telematics program, in which a phone app or device tracks their driving if they are willing to give up some privacy.