Protecting Auto Insurance Consumers

Legislation Introduced to Address Auto Insurance Rate Hikes & Unfair Industry Practices

For many Illinoisans, having a car is the gateway to accessing employment, education, and other vital services – and whether you lease or own, you still have to pay for insurance. Climbing rates are putting the stability of everyday Illinoisans in jeopardy.

The Motor Vehicle Insurance Fairness Act (HB4767/SB3213) was introduced by Rep. Will Guzzardi and Sen. Javier Cervantes to protect consumers from unchecked rate hikes and end discriminatory rate-setting practices. The legislation would create a rate review process for auto insurance and block insurers from using non-driving factors to determine rates.

What is Rate Review?

Since 2022, top car insurance companies have raised our rates by almost $2.4 billion. This is in part because Illinois lacks the protections necessary to stop unfair rate hikes. Illinois is one of only two states, the other being Wyoming, that don’t have some form of rate review. Without rate review, insurance corporations are free to raise prices as they see fit. That’s why, even during the COVID-19 pandemic when driving was at an all-time low, rates still increased.

Rate review would empower the Department of Insurance to review and modify excessive auto insurance rate increases. Similar regulatory practices are already in place for utilities and health insurance.

Source: Consumer Federation of America

Unfair Insurance Practices

Insurers use a variety of metrics to calculate rates. These can include the number of years as a driver or how many accidents someone has been in. These make sense, but there are other non-driving factors that can lead to discriminatory impacts, like credit scores. For example, the average premium for a driver with poor credit is 1.5 times higher than the average premium for a driver with excellent credit and a DWI conviction. How is that fair? 

Take Action — Share Your Story

Have you been impacted by auto insurance hikes? You’re not alone. Stories are powerful ways to communicate how issues affect our lives — and as the General Assembly enters the upcoming session, its crucial that legislators are informed. You can take action to amplify this issue by sharing your auto insurance story.