Hundreds of Illinoisans are logging on to our “Driving Change” town hall meetings, not to complain but to be heard. Their stories align with the data the secretary of state’s office has been seeing, but every town hall reveals just how pervasive unfair car insurance ratemaking practices are, just how little transparency currently exists and just how much strain these practices put on families trying to make ends meet.
At our South Side town hall, Kimberly cut straight to the chase: “This is classic redlining. Using ZIP code to determine car insurance rates rather than driving records is discriminatory.”
Chris, a retiree in her 70s living in Alton on Social Security, told us her monthly premium more than doubled over two years, climbing from $89 to $204. She’s never had an accident, has excellent credit and drives safely. Yet her friend’s grandson, who just got a DUI, pays less than half her rate.
Or take Racheal, a lifelong Austin resident. Her premium went from $1,200 to $2,900 for six months for two vehicles. She has never filed a claim, but her insurance continues to go up, and she’s been told it’s because of her ZIP code. While she is between jobs, she is facing the impossible choice between paying rent or the premium.
These are not outliers. They are unfortunately the norm for far too many residents. It’s these stories that show how much we need legislation that will create accountability and transparency for insurance companies.
We’re over halfway through our town hall push, where more than 800 Illinoisans took time out of their busy schedules to speak out about skyrocketing insurance rates. While the town halls are confirming what the data indicated, we’re also uncovering new issues to explore, including how ride-hail and delivery app drivers are potentially being double charged for auto insurance.
The uniting factor here is a common frustration: Their rates are set not by their record behind the wheel, but by socioeconomic factors including their credit score, ZIP code or age.
Let’s be clear: None of these factors change how safe or reckless of a driver you are. They are just arbitrary tools the insurance companies use to justify rate increases year-after-year — squeezing more money from Illinois families. And the results are absolutely devastating for seniors on fixed incomes, working families and communities of color who are being hit hardest.
Illinois drivers deserve better.
State leaders like Sen. Ram Villivalam, D-Chicago, and Rep. Rita Mayfield, D-Waukegan, as well as faith leaders and AARP Illinois and their 1.7 million Illinois members are fighting with us for more transparency and accountability for why rates are increasing.
The momentum is real, it’s powerful, and it’s growing. But make no mistake, the insurance industry is fighting tooth and nail to protect the status quo. That’s because Illinois is one of only two states in the country where insurers don’t have to justify their rate hikes before jacking them up.
And jack them up they have. Auto insurance premiums in Illinois surged 18% last year and are climbing once again this year, threatening to push the average cost of coverage above $2,000. Without mandated transparency and accountability, companies will keep raising rates — not because of accidents or unsafe driving, but because they can.
When coverage becomes unaffordable, people are forced to make impossible choices. Some drive uninsured and risk fines or losing their license. Others stop driving altogether, adding barriers to retaining a job, getting to doctor appointments and shuttling their kids to and from school. Either way, Illinoisans lose. And our roads become less safe for everyone.
That’s why we need real reform focused on fairness and transparency. This is about safety. If drivers are priced out of coverage, every Illinoisan is at greater risk.
We’re over halfway through this town hall series, but the message from Illinois families could not be clearer: The system is broken, and it’s time to fix it.
Over the coming weeks, we’ll continue our virtual tour of the state, holding town halls in Rockford and Springfield. We’ll keep amplifying stories like Kimberly’s, Chris’ and Racheal’s and urging people to contact their legislator through our website, www.ilsos.gov/drivingchange, to help build momentum for the General Assembly to pass real reform.
Because in Illinois, your auto insurance rate should be based on how safely you drive. Not your ZIP code. Not your credit score. Not your age. Not your social media activity.
That’s common sense. That’s fairness. And that’s the change Illinois drivers deserve.
Alexi Giannoulias is the Illinois secretary of state.