Car insurance rates are on the rise in Illinois and across the country. Factors such as the cost of auto replacement parts, labor expenses, accident frequency and auto thefts are all contributing to this increase. But if you think you are feeling the squeeze now, costs will increase even more if the Illinois Legislature passes House Bill 4611, especially for senior citizens and women.

HB 4611 bans using credit information and gender in determining auto insurance premiums. A recent analysis by a leading national insurer found that more than half of Illinoisans could receive a $294 premium increase or more if the bill is enacted. Equally concerning is that 62% of seniors (65+) could receive a $287 premium increase.

Using credit information in insurance pricing saves consumers 30 to 59% on their car insurance. Banning the use of insurance credit scores in other states has resulted in a major increase for policyholders. For instance, the use of credit was banned in Washington in 2021 and more than 60% of Washington drivers saw an increase in their premiums.

Banning gender could have the unintended consequence of raising rates for women drivers. Statistics show that men tend to have more accidents, so they generally pay higher rates. If gender is banned, women drivers will pay more for their auto insurance.

Bottom line: The use of credit and gender in insurance pricing helps insurers identify consumers who are less likely to file a claim and therefore benefit from a discount or other savings. HB 4611 would remove these benefits at a time when people can least afford them. Lawmakers can protect the best interests of Illinoisans, especially women and seniors living on a fixed income, by considering the consequences of taking away rating factors that save people money on auto insurance.

Lynne McChristian, Director

Office of Risk Management & Insurance Research

University of Illinois, Urbana-Champaign