Illinois Nears New Auto Insurance Oversight as Reform Bill Awaits Governor’s Signature

SPRINGFIELD - Secretary of State Alexi Giannoulias highlighted landmark auto insurance reform legislation that would, for the first time, give Illinois regulators the authority to review and challenge excessive insurance rate increases while strengthening oversight of insurance companies and delivering long-overdue transparency, accountability and consumer protections for Illinois drivers.

Senate Bill 714, which is awaiting the Governor’s signature, is the culmination of a four-year effort led by Giannoulias to reform Illinois’ insurance system after drivers faced soaring premiums with little oversight or recourse. That effort intensified last summer with the launch of the Secretary of State’s Driving Change campaign, which brought the issue directly to communities across Illinois through an online portal, eight town halls and partnerships with faith-based leaders that helped connect the office with drivers most affected by rising insurance costs.

Illinois drivers experienced an average 18 percent increase in auto insurance premiums in 2024 – one of the steepest increases in the nation – while Illinois remained one of only two states, alongside Wyoming, without a meaningful process to review insurance rate increases before they took effect.

“For far too long, Illinois drivers have been left with little recourse as insurance companies imposed steep premium increases without meaningful oversight – answering to no one but their bottom line” said Giannoulias. “This legislation finally changes that. It gives Illinois the authority to challenge excessive and unfair increases while delivering the long-overdue transparency, accountability and consumer protections drivers need and deserve.”

“Illinois drivers have waited far too long for meaningful protections against excessive and unfair insurance rate increases,” said State Senator Ram Villivalam. “Senate Bill 714 gives our state the tools to hold insurance companies accountable, increases transparency in the ratemaking process and ensures consumers are no longer left without a voice. I’m proud to have partnered with Secretary Giannoulias and Representative Jones to advance this long-overdue reform for families across Illinois.”

“For too many families, rising insurance premiums have become another financial burden they simply can’t afford,” said State Representative Thaddeus Jones. “This legislation puts consumers first by bringing greater fairness, transparency and accountability to Illinois’ insurance marketplace. I appreciate Secretary Giannoulias’ leadership in building a statewide coalition that made this reform possible, and I’m proud to help deliver these important protections for Illinois drivers.”

If signed into law, Senate Bill 714 would:

• Require insurers to provide at least 30 days’ notice before increasing auto insurance renewal premiums by more than 10 percent.
• Prohibit excessive, inadequate or unfairly discriminatory insurance rates that don’t reflect actual driving risk.
• Give the Illinois Department of Insurance authority to review rate filings, challenge unjustified increases and require rebates when consumers are overcharged.
• Prevent insurers from shifting out-of-state disaster losses onto Illinois drivers.
• Expand access to insurance discounts for drivers age 55 and older through a modernized National Safety Council Defensive Driving Course.

Senate Bill 714 was shaped by feedback gathered during the Driving Change campaign, where more than 2,000 Illinoisans shared stories of unexplained premium increases despite maintaining safe driving records. Drivers described rate increases tied to factors unrelated to how they drive, including where they live, their age and other non-driving characteristics. Those stories helped inform legislation focused on increasing transparency in the ratemaking process, strengthening accountability and ensuring Illinois consumers are protected from unfairly discriminatory insurance practices.

To further examine those concerns, the Secretary of State’s office commissioned an independent study by O’Neil Risk Consulting & Algorithmic Auditing (ORCAA), which found many Illinois drivers were paying significantly higher premiums based on factors unrelated to their driving behavior, including credit scores, education and ZIP code. The study reinforced the need for stronger oversight and consumer protections in Illinois’ insurance marketplace.

If signed into law, Illinois will join 48 other states that provide regulators meaningful authority to review and challenge excessive insurance rate increases. The legislation would take effect July 1, 2027.

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