Illinois lawmakers are considering legislation that would restrict how automobile insurers use credit scores and age in setting premiums, a move championed by the state’s secretary of state.
Senate Bill 2412 would prohibit insurers from using a driver’s age for policyholders 50 and older, according to the bill text. The measure also bars insurers from canceling, nonrenewing, or raising premiums solely because a policyholder reaches 65, provided the driver holds a valid Illinois license.
The legislation includes additional restrictions on the use of data collected from policyholders’ devices. Insurers would need express written consent before using information from mobile applications or vehicle-installed devices to determine rates, and refusal to grant consent could not justify a premium increase.
Illinois Secretary of State Alexi Giannoulias launched a campaign in July 2025 to prohibit these practices, describing them as discriminatory, according to BestWire. Giannoulias’ office said insurers currently rely on factors such as credit scores, ZIP codes, and age, which may have little connection to driving risk.
“Too often, this results in responsible drivers paying more than others with worse driving records, which simply isn’t fair,” the office said in an emailed statement. “Senate Bill 3823 is a step toward making the system more fair and transparent by ensuring driving history plays the primary role in determining rates.”
Giannoulias added that making auto insurance more affordable helps more drivers maintain required coverage, which in turn promotes safer roads.
The Illinois Insurance Association opposed the campaign, arguing that limiting the actuarial process could hinder market stability. Industry representatives maintain that using a broad set of factors ensures insurers can offer competitive pricing.
Meanwhile, in the US House of Representatives, lawmakers revisited the Prohibit Auto Insurance Discrimination (PAID) Act (H.R. 3664) in mid-2025, which would bar private passenger auto insurers nationwide from using a wide range of non-driving factors – including credit scores, ZIP codes, education level, employment status, and prior insurers – in determining rates or eligibility. The bill would also require more transparency and give the Federal Trade Commission enforcement authority.
Supporters of the PAID Act argue that non-driving-related variables can perpetuate disparities among different demographic and economic groups, while opponents maintain that broad underwriting factors are necessary to accurately assess risk and keep markets competitive.
