Giannoulias auto insurance reform bill clears Illinois House

SPRINGFIELD, IL. - Illinois Secretary of State Alexi Giannoulias’ Driving Change campaign – launched to combat unfair and discriminatory auto insurance practices – is now delivering results, as legislation advancing insurance reforms has passed the Illinois House and will return to the Senate for a concurrence vote.

Senate Bill 1486 builds on the momentum generated by the Secretary of State’s statewide advocacy effort, which elevated concerns from Illinois drivers and helped shape a comprehensive proposal to bring greater fairness, transparency and accountability to insurance ratemaking.

“As Secretary of State, I’ve been clear that driver’s deserve quality auto insurance at a fair price,” Giannoulias said. “Thanks to the thousands of voices of Illinoisans who shared their stories through our Driving Change campaign, we’re now on the verge of passing meaningful reforms that will hold insurance companies accountable and help make coverage more affordable.”

Senate Bill 1486 introduces several consumer protections, including:

• Requiring insurers to provide at least 60 days-notice before increasing renewal premiums by more than 10 percent for auto or homeowners policies.
• Expanding Illinois law to explicitly prohibit auto insurance rates that are excessive, inadequate or unfairly discriminatory – defined as rates that do not reflect actual differences in expected losses and expenses.
• Granting the Illinois Department of Insurance greater authority to review rate filings and challenge those deemed unfair, with a clear process and timeline for hearings and resolution.
• Preventing insurers from shifting costs from out-of-state risks, such as natural disasters, to Illinois policyholders.
• Modernizing the National Safety Council’s Defensive Driving Course by aligning the in-person course requirements with the online course requirements.

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The legislation, which passed the Illinois House, reflects concerns raised during the Driving Change campaign, which Giannoulias launched to spotlight how insurers use socio-economic data including credit scores, ZIP codes and age to set rates in ways that disproportionately impact seniors, working families and communities of color.

The Driving Change campaign kicked off in Chicago’s Bronzeville neighborhood and included partnerships with organizations such as AARP Illinois.

“As this bill moves through the final stages, we are taking a meaningful step toward a more transparent and accountable insurance marketplace,” said Leader Robyn Gabel, a sponsor of the bill. “Illinois drivers and homeowners deserve a system that is rooted in fairness, prioritizes actual risk and protects consumers from excessive or unjustified rate increases.”

“For too long, Illinois families have faced rising insurance costs without clear justification. Senate Bill 1486 establishes important guardrails to ensure rates are not only transparent, but fair,” said State Representative Thaddeus Jones, a sponsor of the bill. “This is about protecting consumers and making sure insurance companies are accountable.”

As part of the campaign, the Secretary of State’s office launched an online portal – www.ilsos.gov/drivingchange – allowing Illinoisans to share personal experiences with insurance pricing and advocate for legislative reform. Feedback collected through the site and a series of statewide town halls directly informed the policy framework now advancing in Springfield.

The push for reform comes amid rising insurance costs statewide. Illinois auto insurance rates increased 18 percent in 2024. At the same time, Illinois remains one of only two states that does not require prior review of insurance rates, leaving consumers vulnerable to excessive or unfair pricing.

Alexi Giannoulias was sworn into office as Illinois’ 38th Secretary of State on January 9, 2023. In this capacity, he also serves as the State Librarian and State Archivist. Giannoulias is committed to transforming the office’s antiquated IT infrastructure to modernize operations and improve customer service for all Illinoisans.

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