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Bill

SB 2691

AUTO INS-NONDRIVING FACTORS

104th Regular Session Introduced by Meg Loughran Cappel and 1 co-sponsor

Illinois bill prohibits auto insurers from using credit scores, education, occupation, marital status, and homeownership to determine rates or eligibility, limiting pricing to driving-related factors.

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WeVote Research Nonpartisan
Bill Summary · SB 2691

Legislative bill overview

SB 2691 restricts Illinois auto insurance companies from using non-driving factors—such as credit scores, education level, occupation, marital status, or homeownership—to determine insurance rates or eligibility. The bill aims to prevent discrimination and ensure rates are based primarily on driving behavior and vehicle risk factors.

Why is this important

Insurance premiums significantly impact vehicle access and transportation costs for low-income households. Currently, insurers use socioeconomic proxies that can inflate rates for vulnerable populations even if they are safe drivers. This bill addresses whether insurance pricing should reflect actual driving risk or broader demographic characteristics.

Potential points of contention

  • Insurance industry opposition: Insurers argue non-driving factors (like credit scores) are statistically predictive of claims and loss frequency, and restricting their use could increase rates overall or force companies to exit the Illinois market
  • Rate uniformity vs. actuarial science: Determining what constitutes "legitimate" risk factors versus discriminatory proxies involves complex actuarial debates about correlation versus causation
  • Implementation challenges: Defining which factors are truly "non-driving" is difficult (e.g., does zip code count as driving-related or demographic?), creating enforcement ambiguity

Compiled from official sources — confirm details with the bill’s official record.

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