Illinois Drivers Hit With 18% Rate Hike Will Get Relief as Giannoulias' Insurance Reform Bill Heads to the Governor

Illinois lawmakers passed sweeping auto insurance reforms that would give state regulators the power to challenge excessive rate hikes for the first time, ending Illinois' status as one of only two states without such authority.

Senate Bill 714, championed by Secretary of State Alexi Giannoulias, cleared the General Assembly after Illinois drivers were hit with an 18 percent rate increase in 2024 – among the steepest in the nation – while insurers reported record profits.

"Insurance companies are raking in record profits while Illinois families are choosing between their car insurance and groceries," Giannoulias said. "Even safe drivers doing everything right are getting hammered with hike after hike. This bill finally gives Illinois the tools every other state but one already has: the power to say no to unfair rates."

The bill, the centerpiece of Giannoulias' statewide Driving Change campaign, would:

Force 30 days' notice before any renewal premium increase over 10 percent

Ban excessive, inadequate or discriminatory rates that don't reflect actual driving risk

Empower the Illinois Department of Insurance to review rate filings, reject unfair hikes, and order rebates to overcharged consumers

Block insurers from passing on out-of-state disaster costs to Illinois drivers

Expand discount access for drivers 55+ through a modernized defensive driving program

An independent study by O'Neil Risk Consulting & Algorithmic Auditing, commissioned by the Secretary of State's office, found Illinois drivers are routinely charged higher premiums based on factors unrelated to how they drive – including credit scores, education and ZIP code.

Giannoulias spearheaded Senate Bill 714 after thousands of Illinoisans submitted complaints through the office's online portal – www.ilsos.gov/drivingchange – describing premium hikes they couldn't explain or afford. Town halls across the state drew packed rooms of frustrated drivers.

The bill now heads to Gov. JB Pritzker's desk for signature.

Compilation of Stories From Illinoisans on Skyrocketing Insurance Costs