Giannoulias' Auto Insurance Reform Bill Passes Illinois Senate - Insurance News | InsuranceNewsNet

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May 27, 2026 Property and Casualty News
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Giannoulias' Auto Insurance Reform Bill Passes Illinois Senate

Chicago Citizen

Illinois Secretary of State Alexi Giannoulias' legislation aimed at combating unfair auto insurance practices passed the Illinois Senate.

Senate Bill 714 builds on the Secretary of State's statewide Driving Change initiative, which was launched to address rising and increasingly unaffordable insurance costs and spotlight unfair and discriminatory ratemaking practices impacting Illinois drivers. Meanwhile, Illinois remains one of only two states without a process to review or challenge rate increases.

"Car insurance rates are crushing Illinois families. Even worse, auto insurance companies aren't basing these premiums on your driving records. As Secretary of State, I've been clear that Illinois drivers deserve fair and affordable auto insurance, especially those that have never had a driving violation." Giannoulias said. "For too long, families have watched premiums skyrocket without transparency or accountability. This legislation is about protecting consumers, increasing fairness and ensuring insurance companies are using legitimate factors – not discriminatory practices – when setting rates."

Senate Bill 714 includes several consumer protections and reforms, including:

Requiring insurers to provide at least 30 days' notice before increasing renewal premiums by more than 10 percent.

Prohibiting 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 rates 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, onto Illinois drivers.

Modernizing the National Safety Council's Defensive Driving Course by aligning in-person course requirements with online standards.

The legislation reflects concerns raised during the Driving Change campaign, which included town halls and community discussions across Illinois focused on how insurance companies use non-driving factors in setting rates.

As part of the campaign, the Secretary of State's office launched an online portal – www.ilsos.gov/drivingchange – allowing Illinoisans to share their experiences with rising insurance costs and advocate for reform. Feedback collected through the portal and statewide outreach efforts helped shape the legislation advancing in Springfield.

The initiative was reinforced by an independent study commissioned by the Secretary of State's office, which found that many Illinois drivers are paying significantly higher premiums based on non-driving factors unrelated to their actual driving behavior. The study, conducted by O'Neil Risk Consulting & Algorithmic Auditing (ORCAA), analyzed insurance rate filings in Illinois and reinforced concerns raised through the Driving Change campaign.

The push for reform comes amid rising insurance costs statewide. Illinois auto insurance rates increased 18 percent in 2024.

SB 714 now advances to the Illinois House.

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