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Giannoulias backing car insurance fairness act
Illinois Secretary of State Alexi Giannoulias testified Monday in support of legislation that would prevent discriminatory auto rates.
SPRINGFIELD, Ill. - On Monday, Secretary of State Alexi Giannoulias testified in Springfield in favor of legislation aimed at preventing discriminatory auto insurance rates.
According to the Secretary of State's office, current state law permits insurance companies to utilize data obtained from external sources and algorithms, resulting in higher insurance premiums based on race and other socioeconomic factors.
Two bills, one in the General Assembly and another in the State Senate, seek to establish the Motor Vehicle Insurance Fairness Act.
"Insurance companies in Illinois currently have the ability to use third-party source data, including from social media, to charge higher insurance premiums based on race, ethnic origin, age, religion, gender, sexual orientation, marital status, and disability. This data also includes a consumer's credit score, ZIP code, homeownership status, purchasing habits, and level of education, which can be used in a discriminatory way to unfairly determine rates," said Giannoulias.
The proposed legislation sets forth a review process for car insurance rate increases and mandates that insurance companies base rates on an individual's driving record rather than non-driving factors in order to ensure fairness.