Think your auto insurance rates are too high? Legislation could give Illinois consumers a break
Controversial legislation to curb “excessive” auto and home insurance premiums and empower state authorities to review and approve rates is pending in the state Senate after clearing the House.
“Skyrocketing premiums are squeezing Illinois drivers and putting real pressure on family budgets — especially when coverage is mandatory and people have no choice but to pay,” said Illinois Secretary of State Alexi Giannoulias, who is backing the measure along with Gov. JB Pritzker.
“The comprehensive reform now moving through the Senate will change that by bringing real transparency, stronger oversight and fewer surprise costs.”
“Illinois consumers deserve consistent, commonsense protections, whether they’re insuring their home or their car,” a Pritzker spokesperson said. “This legislation helps ensure insurance companies are held to the same standards of accountability.”
Not surprisingly, the insurance industry is warning of dire consequences if Senate Bill 1486 passes.
“This state has had the most competitive and stable insurance market in the country for more than 50 years,” Illinois-based State Farm said. “We believe this action will undermine auto and homeowners insurance rate predictability, market stability, and reduce competition while ultimately leading to higher insurance prices for Illinois residents.”
And, “at a moment when lawmakers should be laser-focused on affordability, the General Assembly is instead advancing radical legislation that would make both auto and homeowners’ insurance more expensive for nearly every Illinois household,” the Illinois Insurance Association, American Property Casualty Insurance Association and National Association of Mutual Insurance Companies stated.
Highlights of the bill include:
• Insurers must provide a minimum 60-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 will be authorized to review cases, hold hearings and, if concerns are valid, require modifications and rebates.
• 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.
If passed, the policy would take effect July 1, 2027.
“Forty-eight states require insurance companies to get approval before raising rates — but Illinois drivers still lack those basic protections,” Giannoulias noted.
Soaring premiums prompted separate reform legislation on home insurance, backed by Pritzker, and auto rates last year, but both failed. The two bills were combined this year and passed the House 66-40, with majorities of Democrats in favor and Republicans opposed.
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.
“I am a lifelong Austin resident,” Racheal Carter said at a Sept. 22 forum. “My premium went from $1,200 every six months to $2,900 for six months.
“I have two vehicles that are both paid off, no moving violations, no accidents. I’ve never filed a claim — but my insurance continues to go up and they tell me it’s because of my ZIP code.”
Got a comment or concern about auto insurance? Drop an email to mpyke@dailyherald.com.
Gridlock alert
Drivers heading to O’Hare International Airport should brace for traffic delays starting Wednesday, April 1. IDOT crews will be repairing the substructure of the I-190 bridge over Des Plaines River Road in Rosemont. Des Plaines River Road will shrink to two lanes in each direction, but I-190 itself will not be impacted.