CHICAGO, ILL. (KMOX) – There’s a new effort to end alleged discrimination in auto insurance rates.
The measure would ban auto insurers from basing rates on a driver’s credit score or zip code. Dan Biss of Skokie says current policies need to change.
“They are charging more, even after you adjust for risk, to consumers of color and consumers in majority minority neighborhoods than to white consumers and consumers in majority white neighborhoods,” he says. “It’s racist, it’s wrong, we’ve got to fix it.”
Chicago Senator Jacqueline Collins says a recent study by Consumer Reports and Pro Publica proves it’s a problem.
“33 of 34 major Illinois auto insurance companies charge a driver living in a predominately minority zip code at least 10 percent more than a driver of the same age with similar safety records living in a predominately white zip code,” she says.
Previous similar efforts have failed, but Collins believes backers now have the evidence to overcome industry opposition.