Illinois Senate passes car insurance reform bill letting regulators challenge rate hikes

The Illinois Senate passed a bill championed by Secretary of State Alexi Giannoulias that would let regulators challenge extreme auto insurance rate hikes.

SB0714 would require insurers to give at least 30 days' notice before increasing renewal premiums more than 10%, prohibit excessive, unfairly discriminatory, or inadequate auto insurance rates, give the Illinois Department of Insurance more authority to review rate filings and challenge rates they deem unfair, prevent insurers from shifting costs from risks like natural disasters onto drivers and modernize the National Safety Council's defensive driving course.

The bill, which now goes to Gov. JB Pritzker to be signed, would apply to renewal notices on or after July 1, 2027.

The Secretary of State's Office said the bill was spurred in part by a study that found many Illinois drivers are paying significantly higher premiums based on non-driving factors instead of actual driving behavior.