Alexi Giannoulias: Illinoisans shouldn't pay more for car insurance based on their ZIP code and credit score
Here's an appalling fact: The cost of your car insurance in Illinois isn't based on your driving record — it's based on things such as the neighborhood where you live and your credit score.
This is shameful. Especially when you consider that a motorist with driving under the influence on their record but solid credit pays far less than a driver with a spotless driving record and a low credit rating. Yes, you read that correctly.
As secretary of state, my top priority is keeping our roads safe. And if the purpose of auto insurance is to protect Illinois' 9.4 million motorists, it only makes sense that their driving records should be the primary factor for setting their rates.
But as it stands now, the amount you pay for insurance is largely based on socioeconomic factors and — now, especially with artificial intelligence — your social media algorithms.
Insurance companies rely on credit scores, ZIP codes, age and data from those sneaky third-party apps on your phone to determine how much you pay them. Together, these factors — except, of course, the driving record — create a confusing and unfair ratemaking process that lacks not only transparency but common sense.
When nondriving factors are included in ratemaking, not everyone suffers equally. Senior citizens living on fixed incomes, people of color, and those already struggling to pay their bills are disproportionately affected and hit with higher insurance premiums.
But don't just take my word for it. Consumer Reports and ProPublica analyzed insurance rates and found that in Illinois, all but one of the 34 insurance companies studied charged rates that were at least 10% higher for safe drivers living in predominately minority ZIP codes compared with those in non-minority ZIP codes.
The nonprofit Consumer Federation of America found Illinoisans with perfect driving records and excellent credit (a score of 800 to 850) pay an average annual premium of $424 for state-mandated auto insurance. But consumers with the same driving record but worse credit (a score of 580 to 669) pay an average premium of $607 — at least 40% more. Meanwhile, good drivers with poor credit (a score of 300 to 579) pay an average premium of $915 — a 116% increase compared with those drivers with excellent credit.
It also determined an Illinois driver with a DUI conviction but with an excellent credit history paid $862 less a year for car insurance than someone with a good driving record but a poor credit history!
To shine a light on the ratemaking process, the secretary of state's office is championing legislation in Springfield that would enlist outside experts to determine how non-driving-related factors affect certain demographics of drivers.
Keep in mind: Auto insurance premiums in Illinois jumped a whopping 18% in Illinois last year and are projected to climb even higher this year, according to Insurify, which compares quotes from insurance providers.
In Illinois, if you can't afford your insurance, you can't drive. And that makes it harder to run essential errands, transport your kids, get to work, receive a paycheck, and ultimately earn a living and provide for your family. The blatant biases against individuals and families living in low-income neighborhoods amplifies the economic disparities that have already formed the tragic reality of the 'two Americas,' further exacerbating the injustice and inequality that persist.
And if you choose to drive without required auto insurance, then you face civil fines, the loss of driving privileges and reinstatement fees, a sometimes endless and even more costly cycle. Most worrisome is that these drivers make our roads less safe — for everyone.
There's still much that we don't know about these algorithms and nondriving ratemaking factors, which is why we need House Bill 1234. We need public input, and we need the insurance industry to work with us. If there's a good explanation for why driving records don't matter, but your ZIP code does, we'd like to hear 'how' and 'why.' We're all ears.
As it stands, Illinois and Wyoming remain the only states in the entire country that allow insurance companies to increase rates without any type of state regulation or oversight prior to an increased rate.
The truth is simple — the current system has created a patently unfair, unaffordable and unjust ratemaking system for statutorily mandated automobile insurance. Your ZIP code, credit score or social media presence should not determine how much you pay for car insurance. This not only unfairly punishes the people who can least afford it, but it also creates danger on our roads.
Safe drivers shouldn't be paying the price for a system that is rigged against them. HB1234 would bring transparency and accountability to the ratemaking process and put drivers first.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a day ago
- Yahoo
Tesla partners with Electrify Expo to launch full-weekend EV test drives
Electrify Expo, which has spent the last five years putting on festivals across the U.S. to educate people about electric vehicles, is launching a demo experience where people can take an EV home for a weekend. The first company to partner up is Tesla, and Electrify Expo CEO BJ Birtwell says more brands will come on board in the near future. 'It's an opportunity for our attendees at Electrify Expo to have a no-pressure, non-sales-y experience with an electric vehicle on their terms, running errands and fitting this vehicle into their lives to see if it actually makes sense for them or not,' Birtwell told TechCrunch in an interview. Driving an electric vehicle for the first time can often convince people to make the jump from internal combustion engines. There's also strong demand for these kinds of experiences. Late last year, Consumer Reports found that half of all consumers in the U.S. are interested in test-driving an EV. The new 'Electrify Weekender' experience will be available to Electrify Expo attendees (who also need a driver's license and auto insurance) starting with the Los Angeles festival, which begins on June 21. Birtwell said he hopes to use the Los Angeles launch as an opportunity to iron out any problems ahead of the other festivals this year in Seattle, San Francisco, Chicago, New York, and Dallas. For Tesla, the Electrify Weekender program could be a way to reach potential customers who may still be unfamiliar with or even wary of the brand — perhaps offering a boost at a time when the company's sales are flagging due to an aging lineup, increased competition, and the damage CEO Elon Musk has done to his company's image. Tesla did not respond to a request for comment about the program. Birtwell said the Electrify Weekender program is a natural extension of the kinds of EV demos his festival has been offering for years. While those demos are brief — often lasting around 8 to 10 minutes — he said they have played an important role in converting attendees into EV buyers. 'People who are buying a ticket to come to our festival are often cross-shopping a bunch of different electric cars and trucks, like they're literally coming to our event as if we are the 2.0 version of an auto mall,' he said. 'Then they're getting into all these cars and figuring out what they want to buy. So that experience alone helps people who are really loaded low in the purchase funnel to experience to convert.' Car companies have long offered similar extended test drive programs, but Birtwell said those often leave interested buyers feeling pressure from their local dealership to make a purchase. He expects Electrify Expo to act as an intermediary of sorts that can blunt that pressure, while also attracting consumers who may not have ever signed up for such a test drive to begin with. Ultimately, Birtwell said he expects thousands of people will take up Electrify Expo on the offer. 'If we're going to drive broader EV adoption beyond half the population, that means we need to appeal to everybody,' he said. That means especially targeting consumers who are 'curious and skeptical about EVs.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TechCrunch
2 days ago
- TechCrunch
Tesla partners with Electrify Expo to launch full-weekend EV test drives
Electrify Expo, which has spent the last five years putting on festivals across the U.S. to educate people about electric vehicles, is launching a demo experience where people can take an EV home for a weekend. The first company to partner up is Tesla, and Electrify Expo CEO BJ Birtwell says more brands will come on board in the near future. 'It's an opportunity for our attendees at Electrify Expo to have a no-pressure, non-sales-y experience with an electric vehicle on their terms, running errands and fitting this vehicle into their lives to see if it actually makes sense for them or not,' Birtwell told TechCrunch in an interview. Driving an electric vehicle for the first time can often convince people to make the jump from internal combustion engines. There's also strong demand for these kinds of experiences. Late last year, Consumer Reports found that half of all consumers in the U.S. are interested in test-driving an EV. The new 'Electrify Weekender' experience will be available to Electrify Expo attendees (who also need a driver's license and auto insurance) starting with the Los Angeles festival, which begins on June 21. Birtwell said he hopes to use the Los Angeles launch as an opportunity to iron out any problems ahead of the other festivals this year in Seattle, San Francisco, Chicago, New York, and Dallas. For Tesla, the Electrify Weekender program could be a way to reach potential customers who may still be unfamiliar with or even wary of the brand — perhaps offering a boost at a time when the company's sales are flagging due to an aging lineup, increased competition, and the damage CEO Elon Musk has done to his company's image. Tesla did not respond to a request for comment about the program. Birtwell said the Electrify Weekender program is a natural extension of the kinds of EV demos his festival has been offering for years. While those demos are brief — often lasting around 8 to 10 minutes — he said they have played an important role in converting attendees into EV buyers. 'People who are buying a ticket to come to our festival are often cross-shopping a bunch of different electric cars and trucks, like they're literally coming to our event as if we are the 2.0 version of an auto mall,' he said. 'Then they're getting into all these cars and figuring out what they want to buy. So that experience alone helps people who are really loaded low in the purchase funnel to experience to to convert.' Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW Car companies have long offered similar extended test drive programs, but Birtwell said those often leave interested buyers feeling pressure from their local dealership to make a purchase. He expects Electrify Expo to act as an intermediary of sorts that can blunt that pressure, while also attracting consumers who may not have ever signed up for such a test drive to begin with. Ultimately, Birtwell said he expects thousands of people will take Electrify Expo up on the offer. 'If we're going to drive broader EV adoption beyond half the population, that means we need to appeal to everybody,' he said. That means especially targeting consumers who are 'curious and skeptical about EVs.'
Yahoo
2 days ago
- Yahoo
Steals on Wheels: Underrated Cars Dealers Are Eager to Move
After years of supply chain shortages, buyers now have more negotiating power and choices in selecting a new set of wheels. While CarEdge reports that many Toyota and Lexus models are selling quickly, other makes and models are remaining on lots much longer, creating an opportunity for buyers. This list features vehicles that have garnered positive reviews from automotive critics but are currently offering attractive sales and lease specials. Many of these vehicles are either in their final model year or have been in their current iteration for several years. To generate this list, we consulted publications like Consumer Reports, Edmunds, and Car and Driver for reviews, vehicle specifications, and the latest incentives. We also leveraged automotive manufacturer websites for additional information. Please note that incentives come with conditions and an expiration date for the promotion, so check before purchasing your new car. A Car and Driver Editors' Choice winner, the Hyundai Ioniq 6 EV has an aerodynamic design that enables an impressive all-electric range, making it a great choice for those who need to take longer trips between charges. However, PR Newswire reports that the Ioniq 6 is outsold by its Ioniq 5 crossover sibling by a ratio of 2.5 to 1. This, coupled with the market's shift away from sedans, has led to attractive discounts on the Ioniq 6. For March, Hyundai is offering a lease for $169 per month for 24 months, with $3,999 due at signing on the Standard Range SE model (EPA-estimated 240-mile range), and $199 per month for the Long Range SE (EPA-estimated 342-mile range). Edmunds reports a $7,500 customer bonus cash deal through April 1st. Before incentives, the MSRP on the Ioniq 6 ranges from $38,900 to $55,650. BMW offers a range of impressive EVs, but its most affordable option, the i4, is an electric version of the BMW 4-Series Gran Coupe. According to Car and Driver, the i4 delivers driving dynamics that honor the brand's legendary gas-powered sports sedans. Adding to its appeal, the i4 features a liftback, which enhances cargo-carrying practicality compared to a traditional sedan. A 2025 mid-cycle refresh updates the front and rear styling and adds a few enhancements and trim options to the interior. Given the 2025 changes, you might be able to secure a deal on leftover 2024 models. However, even with the refresh, Consumer Reports has observed an average discount of 7% off the MSRP of the 2025 i4. With a pre-incentive MSRP ranging from $52,800 to $70,700, buyers could save approximately $3,700 to $5,000 on a new i4. Subaru was ahead of the crossover curve with its Outback and Forester and has continued to lean into market demand with the Crosstrek and Ascent. Unfortunately, Subaru announced that its oldest nameplate, the Legacy, will not continue beyond 2025. The midsize Legacy sedan comes with standard all-wheel drive (AWD), offers decent fuel economy, and starts at approximately $26,000 for the base model with the 182 horsepower engine. For those seeking more power, the Legacy provides a turbocharged option that produces 260 hp. According to Consumer Reports, the average savings from the MSRP is $1,541. The Mercedes CLA is a 4-door coupe version of the A-Class sedan, which is no longer sold on our shores. Boasting stunning looks, it's the cheapest model in the three-pointed star lineup. However, Car and Driver reports the well-equipped base trim includes a 10.3-inch infotainment screen, a leather-wrapped steering wheel, automatic emergency braking, a 360-degree camera, Apple CarPlay and Android Auto, and more. Consumer Reports found a recent average transaction savings of 10% or $4,509 off the MSRP of the CLA. Not only do you get a deal on Mercedes' most affordable vehicle, but you still get the Mercedes dealer experience. Even better, you acquire a vehicle that's different from what everyone else is driving. Before discounts, the CLA's MSRP ranges from $44,400 to $67,050. While its pseudo-replacement, the all-electric ES90, is capturing headlines this month, the internal combustion engines (ICE) and plug-in hybrid electric vehicle (PHEV)-powered Volvo S90 luxury sedan continues to soldier on. Despite being in its ninth model year, the S90's interior and exterior styling are aging gracefully. For buyers interested in PHEVs, the S90 PHEV boasts an EPA-estimated electric range of 38 miles. With 455 hp, this large sedan accelerates to 60 MPH in just 4.6 seconds. Edmunds reports $3,000 in customer cash deals on the S90 through April 1st for qualifying purchases. Before incentives, the MSRP for the S90 ranges from $58,300 to $71,200. Sized similarly to the i4, the A5 Sportback is a four-door hatchback in its final model year before a redesign. According to Car and Driver, the A5 Sportback's standard features include leather seats, three-zone climate control, and a panoramic sunroof. With a large cargo hold and Quattro all-wheel drive, the A5 could be considered a worthy alternative to an SUV for individuals seeking a blend of performance and practicality. Edmunds reports customer cash offers of $3,000 on the Audi A5. The A5's MSRP ranges from $48,840 to $56,950 before discounts. Volkswagen's compact Tiguan SUV is nearing the end of its model cycle, and 2024 models are still available as Volkswagen prepares to launch the third-generation Tiguan this year. Car and Driver highlights the Tiguan's generous second-row seating, spacious interior, and European handling as appealing features of the crossover. Standard heated seats, Adaptive Cruise Control (ACC), Blind Spot Monitor w/ Rear Traffic Alert, and Forward Collision Warning and Autonomous Emergency Braking (Front Assist) further sweeten the deal. Edmunds reports a $2,500 customer bonus cash deal available through May 1st. Pricing ranges from $28,880 to $38,880 before promotions. Larger than the compact Escape but smaller than the three-row Explorer, the Edge is a spacious two-row SUV with a roomy cargo area. Consumer Reports praised its handling and braking capabilities, as well as its quiet interior. Although 2024 marked the final model year for the Edge, it is still available for sale. Edmunds reports that Ford is offering up to $5,000 in customer cash on qualifying purchase and lease agreements. The Edge's pre-incentive MSRP ranges from $38,365 to $47,205. Kia's striking EV6 might get more attention, but the brand's entry-level Niro EV is an enticing value. Although Car and Driver reports it charges more slowly than the EV6, the Niro has a 253-mile range, accelerates to 60 mph in 6.7 seconds, and provides 23 cubic feet of cargo space. The well-equipped base "Wind" trim level comes standard with forward-collision warning and automated emergency braking, lane-departure warning and lane-keeping assist, and adaptive cruise control with a lane-centering feature. According to Edmunds, Kia is offering a $7,500 customer cash deal on Niro EVs, which means an opportunity to get behind the wheel of a brand-new EV for under $35,000. Now in its eighth model year, many competitors of the Volkswagen Atlas have been redesigned more recently. While other three-row midsize SUVs may sport newer designs, not all offer the Atlas's spacious cabin. Car and Driver commends the Atlas for its genuinely functional third-row seat, and choosing the optional second-row captain's chairs still provides six usable seats. While it may lack the styling of the Kia Telluride or the fuel economy of a Toyota Highlander Hybrid, the Atlas is an attractive value for the money. Additionally, it can tow up to 5,000 pounds. Furthermore, Edmunds has discovered $2,500 in customer bonus cash deals for eligible purchases and leases. The Atlas is priced from $39,625 to $54,630 before incentives. Although Audi's best-selling model, 2025 marks the final year of this iteration of the Q5, and the brand is offering generous incentives to move the outgoing model before the third generation arrives. Car and Driver notes distinctive styling, build quality, and standard tech features as highlights of Audi's compact luxury crossover SUV. With Edmunds reporting a $4,000 customer cash incentive offer on Q5s through April 1st, this well-rounded model just became more approachable. Prior to discounts, the Q5's MSRP ranges from $45,400 to $66,700. With rising car prices, being in the market for a new vehicle can be frustrating. Fortunately, there are many practical, fun, high-performing vehicles that can still be acquired at a discount. Depending on availability, these incentives may be extended into April or later. As always, be sure to read the fine print. Some of these customer bonus cash deals can be combined with other promotions, such as owner loyalty offers, for additional discounts.
