Springfield, IL-(Effingham Radio)- Illinois Secretary of State Alexi Giannoulias released a new study detailing how auto insurance companies use non-driving factors to significantly increase costs for Illinois drivers.
The release of the study reinforces the need for legislative reforms advanced through the office’s Driving Change campaign and was compiled from nearly 2,000 responses from Illinois residents.
The Illinois Secretary of State’s office commissioned an independent study from O’Neil Risk Consulting & Algorithmic Auditing (ORCAA) to conduct an in‑depth analysis of insurance rate filings in Illinois. The findings are clear: many Illinois drivers are paying substantially higher premiums based on factors that have nothing to do with 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 Giannoulias, noting that auto insurance premiums in the state jumped 18 percent in 2024. “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.”
The findings illustrate how insurers rely on “multiplicative factors” in rate-setting, which can result in wide pricing disparities:
- Drivers with poor credit can pay more than 2.7 times higher premiums for the same coverage compared to those with excellent credit.
- Seniors can face substantially higher rates despite safe driving records, with premiums increasing significantly after age 65.
- Drivers in certain ZIP codes can pay more than 2.5 times higher rates than those in other parts of the state, even when all other factors remain the same.
The study also highlights how these factors compound, meaning a driver who is older, has lower credit, and lives in a higher-cost ZIP code may pay dramatically more for identical coverage.
“These findings validate what Illinois families have been telling us for months,” said State Senator 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,” said State Representative Thaddeus Jones. “It underscores why reforms like Senate Bill 1486 are necessary to protect consumers and ensure rates are fair.”
The analysis is grounded in both data and lived experience. Through the Driving Change campaign, the Secretary of State’s office collected:
- More than 1,800 constituent responses
- Over 600 personal stories describing sharp premium increases
- Participation from residents across Illinois, representing more than 400 ZIP codes
Many respondents reported significant rate hikes despite having clean driving records, with increases tied to life events such as aging, financial hardship or moving to a different neighborhood.
The study’s release comes as legislation inspired by the Driving Change campaign, Senate Bill 1486, moves to the Senate for final passage. The measure would strengthen oversight of insurance rates, prohibit unfairly discriminatory pricing and prevent insurers from shifting out-of-state costs onto Illinois policyholders.
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