Illinois House Bill 4611 Stalls, Raises Concerns About Auto Insurance Rates for Seniors

Illinois Secretary of State’s Measure to Limit Factors for Auto Insurance Rates Stalls in Committee

House Bill 4611, a measure supported by Illinois Secretary of State Alexi Giannoulias to limit factors that auto insurers can use to set rates, has hit a roadblock and stalled in committee. The bill, which aimed to ban credit scores as a determining factor in setting auto insurance rates, failed to advance before the deadline last week.

Giannoulias responded to concerns that the measure could potentially raise auto insurance rates for senior drivers. He expressed his disappointment in the lack of satisfactory answers from insurance companies regarding the current practices of setting rates based on credit scores and zip codes.

State Rep. Jeff Keicher, who also sells insurance, raised concerns in committee that senior drivers, who typically have better credit scores, could see an increase in rates if the bill becomes law. Keicher, who is commission-based, pointed out that he could potentially make more money if the bill is passed.

Despite efforts by the chair of the insurance committee, State Rep. Thaddeus Jones, to push the bill forward and consider amendments, House Bill 4611 never left committee. Jones emphasized the importance of the bill and the need to address discriminatory factors in setting auto insurance rates.

Opponents of the bill argue that Illinois currently benefits from free-market practices that keep auto insurance rates competitive and that additional regulations could lead to an increase in rates. Similar legislation has emerged in other states like Colorado, New Jersey, and New York, where car insurance premiums have seen significant increases in recent years.

This setback is not the only one for Secretary of State Giannoulias, as another bill he prioritized, House Bill 4567, which aimed to enhance penalties for offensive behavior towards librarians, was also pulled from the record by the sponsor last week.

The future of House Bill 4611 remains uncertain as discussions continue on how to address the concerns raised by both supporters and opponents of the measure. Stay tuned for updates on this developing story.