Issue Spotlight: Car Insurance Discrimination đźš—
Dear Neighbor,
As the legislative session begins, I’d like to use this space to take an in-depth look at some of the issues I’ll be focusing on this year.
This week, I’m starting off with a topic we’ve discussed before: the high cost of car insurance, especially for low-income drivers.
You may have seen in the news last week a new report that the big insurance companies raised rates on Illinois drivers by over $1.2 billion last year. (Here’s me talking about it on Univisión!) You almost certainly saw your own premium go up last year, probably by a decent amount.
Insurance companies will say that the costs of repairs and medical bills have gone up, which means they have to raise prices. That may be true, but Illinois is one of only two states where they can raise rates by as much as they want, with no government oversight. (It’s us and Wyoming — strange bedfellows!)
We think if the companies want to raise your premiums, they should do what they’re required to do in most other states, and what the power and gas companies have to do. They should explain publicly how much they want to raise the rates, give a justification, and then submit that increase for approval to a public body that can accept or modify it.
Another change we want to make has to do with how those rates are set. You’d think your premium would be based on your driving record, right? Have you been in a crash, have you gotten tickets, DUIs, what have you.
That is part of it, but insurance companies have come up with complex formulas that take into account all kinds of “non-driving factors” too. Your ZIP code, credit score, level of education, employment, and even gender are all used in setting your rate.
The upshot of these formulas is that women, renters, and people in low-income neighborhoods all pay more than their peers. And get this: a driver with poor credit and excellent driving history pays more than a driver with good credit and a DUI! Read this great Sun-Times investigation to learn more.
It’s time to put a stop to all this. That’s why I’ve introduced a bill that would require public review of premium increases, and would prohibit the use of “non-driving factors” in rate-setting.
I’m not sure how much progress we’ll make this year — the insurance lobby is very powerful in Springfield. After all, Allstate and State Farm are both based here in Illinois. But I got into this work to stand up to powerful lobbying interests on behalf of my constituents, and I hope I can persuade my colleagues to do the same.
More to come on other topics soon! Until then, please stay in touch, and all my best,
Will
IDFPR License Renewal
A number of professional licenses are up for renewal with the Illinois Department of Financial and Professional Regulation with a deadline of Sunday, March 31, 2024. You can renew your license by logging into your account here. Reach out to our office at (773) 853-2570 or at will@repguzzardi.com for assistance.
Metropolitan Family Services Open House
Join Metropolitan Family Services for an open house to introduce their new program, Bridge to Construction. Bridge to Construction is designed to help those seeking a career in construction gain valuable experience, training, and certifications. The open house is on Friday, January 26 at 10am at 3249 N Central Ave.
RTA Access Pilot Program
The Regional Transportation Authority (RTA) has partnered with the Cook County Government and Metra to introduce Access, a pilot program extending reduced fare to Metra riders experiencing low incomes regionwide. The pilot program will be available to those in Cook, DuPage, Lake, Kane, McHenry, and Will counties who qualify for the Supplemental Nutrition Assistance Program (SNAP). Learn more at rtachicago.org/riders/access, and apply directly at GetAccess.org.
35th Ward Public Art Project
The 35th Ward and the Chicago Department of Cultural Affairs and Special Events are seeking artists for an outdoor mural on the viaduct wall at 2910 N California Ave. You can find eligibility criteria and timeline details here. The deadline to apply is Sunday, February 11, 2024.