House considers auto insurance measure allowing consumers to appeal hikes
Legislation aiming to prevent dramatic spikes in auto insurance is poised for a final vote in the Illinois House.
The measure is spearheaded by Secretary of State Alexi Giannoulias, who has contended the insurance system is “rigged” against seniors and low-income individuals.
Senate Bill 714 cleared the upper chamber on May 13 by a 42-14 margin, with a majority of Democrats in favor.
“For too long, families have watched premiums skyrocket without transparency or accountability,” Giannoulias said in a statement. “This legislation is about protecting consumers, increasing fairness and ensuring insurance companies are using legitimate factors — not discriminatory practices — when setting rates.”
A number of Republicans oppose the measure, including GOP state Rep. Jeff Keicher, whose district includes Kane and McHenry counties.
“What we have is a politically motivated campaign slogan bill that will increase auto rates for every consumer operating an automobile in the state of Illinois,” Keicher said.
Highlights of the bill include:
• Insurers must provide a minimum 30-day notice before raising premiums by more than 10% on auto and home policies.
• Companies are prohibited from imposing auto rates that are “excessive, inadequate or unfairly discriminatory,” meaning amounts that do not represent actual expected losses and expenses.
• Policy holders can file complaints with the Illinois Department of Insurance if they think their rates are unfair. The IDI would be empowered to review cases, challenge rates it deems unfair, and hold hearings.
• Prevent insurers from shifting the costs of out-of-state disasters, such as hurricanes, onto Illinois policy holders.
• Ease requirements for people 55 or older taking the National Safety Council’s defensive driving course, which lowers premiums, by allowing online participation.
In 2025, Giannoulias held virtual town halls on auto insurance costs across Illinois aimed at drawing attention to the issue. Attendees testified about rate hikes based solely on their credit score and where they lived, and seniors cited age-based increases.
“The horrible, hard truth is that insurance companies charge you more for auto insurance based on your credit rating, the neighborhood you live in and your age. It really doesn’t matter that you’re a safe driver,” Giannoulias said.
“Policies based on credit rating and ZIP code disproportionately impact people with lower incomes and people of color.”
If passed, the legislation would take effect July 1, 2027.
Keicher predicts insurance companies would start factoring in an “uncertainty” component when setting premiums reflecting the possibility the IDI asks them to charge lower rates. “It’s going to force — with that uncertainly — slightly higher premiums,” he said Wednesday.
He cited a recent U.S. News and World Report study that ranks Illinois sixth lowest for annual auto insurance rates in the nation. “It’s a solution in search of a problem,” said Keicher, who owns an insurance agency.
Giannoulias has noted that “48 states require insurance companies to get approval before raising rates — but Illinois drivers still lack those basic protections.”