What's Driving Up Your Auto Insurance Rates?

(CBS) -- No accidents, no tickets and no claims for years. You'd think a good record would keep your car insurance from going up.

CBS 2's Dorothy Tucker reports on why rates are soaring and why some pay more, depending on where they live.

Daniel Hickey considers himself a good driver. So, when his premium increased $12 a month, he wasn't happy.

"I think it's ludicrous. I think we all pay too much," Hickey says.

Four of the largest insurers in Illinois have increased premiums from three to eight percent this year.

What's driving the recent spike?  Insurers say more people are on the road, fueled by higher employment and lower gas prices.

More crashes equal more claims and today's cars cost more to repair, says Bob Passmore, Assistant Vice President of Personal Lines Policy at Chicago-based Property Casualty Insurers Association of America.

"If you have more people driving, they're going to get into more accidents," Passmore says. "The cars themselves have more sophisticated electronics, and those pieces are expensive to replace."

Vernon McCallum drives one of those high-tech cars, a 2016 BMW that has many safety features including front, rear and side cameras. He expects to pay more for a luxury car, but he's also paying more because of where he lives.

"I just don't think that that's fair," McCallum says.

That's the reality in Chicago, according to Value Penguin. It got quotes from 14 insurance companies, using the same driver profile and only changing the zip code.

"The neighborhoods that had lower median incomes tended to pay more for their car insurance than ones with higher incomes," research analyst Craig Casazza says.

Using the Value Penguin model, McCallum would pay $1,232 a year in his Hyde Park zip code, 60615. And in mostly black West Englewood 60636, he'd pay $140 more. In mostly white Printer's Row zip code 60605, he'd pay $200 less.

The price difference, according to Passmore, is based on the number of accidents.

"There are more claims, claims that arise out of theft or vandalism to a vehicle. Mostly, though, it's accidents that drive it," he says.

James Donaldson lives in West Englewood. He doesn't think zip codes should make a difference.

"You're still in city limits," he says.

Experts say if you're not happy, shop around.

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