Over the last few years, licensed drivers in the state of Illinois have consistently experienced increases in their insurance premiums. Providers have been raising rates, often with little to no warning, forcing clients to either take on the additional cost or switch providers.
Now, in a historic first, the Illinois Senate is introducing a new law to fight these steep price hikes. Senate Bill 714, which seeks to amend the Illinois Insurance Code, has successfully passed the legislature and now awaits the approval of Governor JB Pritzker, who reportedly “looks forward” to signing the bill into law.
What’s Going to Change?
The major change going forward will be the introduction of a mandatory notice period for major rate increases. Specifically, IL SB 714 forces auto insurers to inform clients at least 30 days in advance if their renewal premium is increasing by more than 10%. While the state is not forcing insurance companies to change their pricing, the new rule does mean that drivers will have a month’s notice before being made to pay a substantially higher premium.
Other changes include the prohibition of “excessive, inadequate, or unfairly discriminatory” rates. The Illinois Department of Insurance will also have more authority to combat any rates that they fall under that description. Additionally, the new law will prohibit insurance providers from charging drivers over risks such as natural disasters.
When Will the Law Go into Effect?
Should the Governor sign the new bill in the coming weeks, the new rules would become binding on July 1, 2027. Any substantial premium rate changes that are introduced by insurers on or after that date will trigger the 30-day notice minimum.
Other elements of the law, such as the IDOI oversight on unfair rates, will also become official in July 2027.
What Does SB 714 Mean for Me?
While the passage of SB 714 will not cause sweeping reform, it will lessen the burden on drivers, who will have more time to either prepare for insurance increases or switch to a more cost-effective policy. The law could also be the first in a long line of regulatory changes related to insurance premiums, as the IDOI is having its jurisdiction significantly expanded.
As auto insurance becomes more and more difficult to manage and car accident injuries continue to increase, it is important to know your options if you are involved in a collision. If you or someone you know was injured in a car accident, the attorneys at Vito & Dollenmaier Law are here to help. We will evaluate your claim, negotiate with insurance providers, and file a lawsuit on your behalf if necessary. Contact us for a free consultation today.