Illinois Secretary of State Alexi Giannoulias has released a new study exposing how auto insurance companies in Illinois significantly increase rates for drivers based on non-driving factors, reinforcing the push for legislative reforms under the office’s Driving Change campaign.
The independent analysis, commissioned by the Secretary of State’s office and conducted by O’Neil Risk Consulting & Algorithmic Auditing (ORCAA), examined insurance rate filings and gathered nearly 2,000 responses from Illinois residents. The findings show that drivers are often charged higher premiums for reasons unrelated to their driving record.
“This study puts hard data behind what Illinois drivers have been experiencing for years – pricing practices that can penalize people for factors beyond their control,” said Secretary Giannoulias. He noted that auto insurance premiums in Illinois jumped 18 percent in 2024 alone. “When safe drivers are paying more because of factors entirely unrelated to their driving record, it raises serious questions about fairness and transparency in the system.”
Key findings from the study include:
Credit Scores: Drivers with poor credit pay more than 2.7 times higher premiums than those with excellent credit.
Age: Seniors often face substantially higher rates after age 65, regardless of their driving history.
ZIP Codes: Location plays a major role, with some drivers paying more than 2.5 times higher rates than others in different areas, even with identical driving records.
Compounded Impact: Drivers who are older, have lower credit, and live in higher-cost ZIP codes can see dramatically increased rates for identical coverage.
“These findings validate what Illinois families have been telling us for months,” said State Senator Ram Villivalam. “Insurance pricing should be rooted in fairness and actual risk – not policies that disproportionately burden working families and seniors.”
“This study makes clear that the current system lacks transparency and accountability,” added State Representative Thaddeus Jones, emphasizing the need for reforms such as Senate Bill 1486 to protect consumers and ensure fair rates.
The Driving Change campaign collected over 1,800 constituent responses and more than 600 personal stories from residents in over 400 ZIP codes. Many reported sharp rate hikes despite clean driving records, with increases tied to life events like aging, financial hardship, or moving neighborhoods.
Senate Bill 1486, inspired by the Driving Change campaign, is now moving to the Illinois Senate for final passage. The legislation aims to strengthen oversight of insurance rate-setting, prohibit unfairly discriminatory pricing, and prevent insurers from shifting out-of-state costs onto Illinois policyholders.