VILLIVALAM ADVANCES MEASURE THAT SETS GUARDRAILS ON AUTO INSURANCE RATE INCREASES IN ILLINOIS

The following information was released by the Illinois Senate Democrats:

State Senator Ram Villivalam is leading the charge with a measure aimed at regulating auto insurance premiums in Illinois.

"Our wallets are hurting as the cost of living rises and there are no commonsense guardrails on dramatic auto insurance rates, leaving many residents scrambling to pay for extra, unexpected bill increases," said Villivalam (D-Chicago). "It's time we hold multi-million dollar companies accountable and ensure that required auto insurance is affordable for residents across the state."

According to Insurify, the average Illinois driver saw an 18% increase in premiums costs for full-coverage auto insurance between 2023 and 2024, while the national average is estimated to be 11.3% ─ almost 7% lower.

To ensure a fair and affordable auto insurance marketplace for Illinoisans, the measure would provide transparency and accountability as it relates to premium increases through a clear framework, oversight from the Illinois Department of Insurance and expanded options for residents over age 55 to reduce insurance premium costs.

Specifically, the measure would prohibit companies from increasing premiums by more than 10% without first notifying the consumer 30 days prior to renewal. It would also prohibit auto insurance premiums from being excessive, inadequate or unfairly discriminatory and create a determination hearing process through the Department of Insurance if it finds rates are excessive, inadequate or unfairly discriminatory.

Additionally, the measure would provide a path to relief for residents over age 55 by allowing the Illinois Secretary of State to find a course that meets or exceeds the standards of the National Safety Council's Defensive Driving Course's four-hour classroom safety instruction program so residents see reduced premium costs upon completion of the course.

"By providing transparency and accountability for premium increases, we are bolstering residents' ability to live and thrive in our communities without worry of auto insurance becoming unaffordable," said Villivalam.

Senate Bill 714 passed the Senate Wednesday and now heads to the House for further consideration.