Giannoulias launches statewide campaign addressing auto insurance discrimination

SPRINGFIELD, Ill. (WAND) — The Illinois Secretary of State's office is launching a statewide campaign to ensure fairness and transparency within the auto insurance industry. Alexi Giannoulias believes your driving record should be the primary factor analyzed when setting auto rates.

Giannoulias told reporters in Chicago Wednesday that insurance companies should be banned from using socioeconomic data to charge certain Illinois drivers higher rates. He is now asking Illinoisans to share their personal stories about discrimination they have faced based on credit score, zip code, or age.

"Policies based on credit rating and zip code disproportionately impact people with lower incomes and people of color," Giannoulias said. "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."

Illinois House Democrats passed a bill this spring to create an auto insurance discrimination commission to study this issue. However, that plan died once the bill arrived in the Senate.

"I challenge these insurance companies, CEOs and others to come to these hearings and sit and listen to these stories and then not be compelled to act and do something," said Sen. Ram Villivalam (D-Chicago).

Republicans oppose the Secretary of State's plan, as they argue he should not be injecting himself into insurance rate-making. Some argued it is an overreach of power, even though members of the House and Senate insurance committees work as insurance agents.

"They did not have the courage to stand up for the people," said Rep. Rita Mayfield (D-Waukegan). "I am proud to stand with our Secretary, who has the courage to fight industry, who will stand up for the people of the state of Illinois on this critical issue."

Giannoulias will hold an auto insurance discrimination town hall event in Champaign on Sept. 17. The Secretary of State's office will hold a separate town hall in Springfield on Oct. 15.

You can submit personal stories about auto insurance rates by clicking here.