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Push to make car insurance rates more fair in Illinois
Just weeks after Gov. J.B. Pritzker raised concerns about a State Farm hike in homeowners insurance, attention is now turning to the rising cost of auto insurance in Illinois.
ILLINOIS - Just weeks after Gov. J.B. Pritzker raised concerns about a State Farm hike in homeowners insurance, attention is now turning to the rising cost of auto insurance in Illinois.
The Illinois Secretary of State is encouraging residents to weigh in on the issue.
What we know:
The Secretary of State’s Office said insurance companies use several factors to determine how much policyholders pay in premiums. These include credit score, location and age.
When race is factored in, the rates become disproportionately high for certain groups.
Auto insurance rates are rising nationwide, but Illinois is seeing faster increases than most states. A new report shows premiums jumped 18% in 2024, with another 4% increase expected this year. The average cost of full coverage is now more than $2,000 annually.
Illinois is one of only two states—along with Wyoming—that does not require insurance companies to submit rate increases for state review.
A 2023 report revealed a concerning disparity: safe Illinois drivers with excellent credit paid an average of $424 per year. Safe drivers with poor credit paid more than twice that amount.
What they're saying:
"In fact, an Illinois driver with good credit and a DUI will get a lower premium than a driver with poor credit and no DUI. Safe drivers with poor credit score pay a whopping $850 more annually than a driver with a DUI that has excellent credit. And when you factor in where you live, it gets even worse. The Illinoisans living in predominantly minority ZIP codes pay at least 10 times more than those living in non-minority ZIP codes," said Secretary of State Alexi Giannoulias.
The Illinois Insurance Association, American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies issued a joint statement in response:
"Our top priority is preserving Illinois' competitive insurance marketplace that keeps Illinois rates low… 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 policyholders. Insurers are not permitted to use and do not use factors like race, income, religion and/or ethnicity in setting rates."
What's next:
Over the next several weeks, the Secretary of State’s Office will conduct a series of town hall meetings to gather public input and help shape legislation for the next General Assembly session.
Meeting locations and times will be posted at ILSOS.gov/drivingchange.
The first town hall is scheduled for Aug. 20 at Bright Star Church on Chicago’s South Side.