Illinois Senate Bill SB2412

Illinois 2025-2026 Regular Session

• Introduced: 2/7/25
• Refer: 2/7/25

Caption

INS-RATES CREDIT SCORE & AGE

Summary

SB2412 would amend the Illinois Insurance Code to restrict how automobile insurers set rates and premiums for certain policies. The bill bars insurers from using an applicant’s or insured’s credit-based insurance score or, for insureds age 50 and older, age itself when determining premiums for specified auto insurance risks. It also prohibits insurers from canceling a policy, refusing to renew, or raising a premium solely because an insured has reached age 65, so long as the person has a valid Illinois driver’s license. The bill further addresses telematics and device-based data. It would prohibit insurers from using data obtained from applications on an insured’s cellphone or from software installed in a vehicle, whether at manufacture or later, to set rates or premiums unless the insured gives express written consent. If consent is withheld, the insurer may not increase rates or premiums because of that refusal. In effect, the measure creates new consumer protections limiting age-based, credit-based, and certain data-driven underwriting practices in auto insurance.

Impact

If enacted, SB2412 would add a new Section 143.19.6 to the Illinois Insurance Code and directly constrain underwriting and rating practices for certain automobile insurance policies in Illinois. It would reduce insurers’ ability to use credit-based insurance scores, age-based pricing for drivers 50 and older, and telematics or app-based data without express written consent. It would also protect older drivers from cancellation, nonrenewal, or premium increases based solely on turning 65, provided they maintain a valid Illinois driver’s license.

Sentiment

The bill’s caption and structure suggest a consumer-protection approach focused on fairness in auto insurance pricing, especially for older drivers. Because there are no committee transcripts or recorded votes provided, there is no documented debate or formal legislative sentiment in the materials supplied. Based on the text alone, the measure appears designed to appeal to concerns about age discrimination, privacy, and the use of opaque data in insurance underwriting.

Contention

The main points of potential contention are likely to be the restrictions on insurers’ rating flexibility and the limits on using credit and telematics data. Consumer advocates and older-driver groups would likely support the bill’s protections against age-based pricing and cancellation, while insurers may object that the bill limits actuarial tools they use to assess risk and price policies. The express written consent requirement for cellphone and vehicle data may also raise debate over privacy, consent, and whether withholding consent should affect rates at all.