Illinois debates eliminating factors in auto insurance rate calculations

SPRINGFIELD, Ill. (WICS) — Illinois is considering eliminating certain factors that determine auto insurance rates, such as credit score, ZIP code, and age.

The Secretary of State claims that removing these criteria would lower insurance rates and increase transparency in rate setting.

However, Kevin Martin, executive director of the Illinois Insurance Association, expressed skepticism.

“Recently in the last probably four to five years there have been states that have tried to do this–to ban the use of these factors. The state of Washington, Oregon, state of Colorado–all three of them have done it and in the state of Oregon for instance within a year the cost for insurance in that state went up nearly 60%,” Martin said.

The debate continues as Illinois weighs the potential impact on insurance costs.