SPRINGFIELD – Illinois Secretary of State Alexi Giannoulias today joined Governor JB Pritzker as he signed landmark legislation, transforming how auto insurance rates are regulated in Illinois. The measure establishes long-overdue safeguards with the strongest consumer protections in decades and gives the state new authority to challenge excessive premium increases.
With the Governor’s signature, Illinois is no longer one of only two states without meaningful authority to challenge excessive and unjustified auto insurance rate increases and require refunds when drivers are overcharged. The law takes effect July 1, 2027.
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The legislation caps a four-year effort led by Giannoulias to modernize Illinois’ auto insurance laws after years of skyrocketing premiums, limited oversight and few options for consumers facing unexplained rate increases. Senate Bill 714 was shaped by thousands of Illinois drivers who shared their experiences through the Secretary of State’s statewide Driving Change campaign.
“For too long, Illinois drivers have been at the mercy of insurance companies – forced to accept steep insurance rate increases with virtually no oversight and no recourse,” Giannoulias said. “Today, we level the playing field for consumers. This victory belongs to the thousands of Illinoisans spoke out, shared their stories and demanded a fairer system. This law puts consumers first by giving Illinois the authority to challenge excessive rate hikes – increasing transparency in the insurance marketplace and ensuring drivers are no longer left paying the price.”
Prior to this legislation, Illinois drivers experienced an average 18 percent increase in auto insurance premiums in one year alone – representing one of the steepest increases in the nation – while Illinois remained one of only two states without a meaningful process to review insurance rate increases before they took effect.
The new law will:
- Require insurers to provide at least 30 days’ notice before increasing auto insurance renewal premiums by more than 10 percent.
- Prohibit excessive, inadequate or unfairly discriminatory insurance rates that do not reflect actual driving risk.
- Authorize the Illinois Department of Insurance to review rate filings, challenge unjustified increases and require rebates when consumers are overcharged.
- Prevent insurers from shifting out-of-state disaster losses onto Illinois drivers.
- Expand access to insurance discounts for drivers age 55 and older through a modernized National Safety Council Defensive Driving Course.
The legislation follows the Secretary of State’s Driving Change campaign, which included an online portal, eight town halls across Illinois and partnerships with faith leaders and community organizations to hear directly from drivers struggling with rising insurance costs. More than 2,000 Illinoisans shared stories of unexplained premium increases despite maintaining safe driving records.
To further examine those concerns, the Secretary of State’s office commissioned an independent study by O’Neil Risk Consulting & Algorithmic Auditing (ORCAA), which found many Illinois drivers were paying significantly higher premiums based on factors unrelated to their driving behavior, including credit scores, education and ZIP code. The findings reinforced the need for stronger oversight and greater accountability in Illinois’ insurance marketplace.
