Illinois homeowners and drivers will receive new protections against insurance rate increases under legislation signed Tuesday by Gov. JB Pritzker.
Beginning July 1, 2027, the Illinois Department of Insurance will have the authority to review homeowners and auto insurance rate increases and determine whether they are excessive, inadequate, or unfairly discriminatory. Illinois had previously been one of only two states without regulatory oversight of insurance rates.
The new laws also require insurers to provide 60 days’ notice before homeowners insurance increases of more than 10% and 30 days’ notice before auto insurance increases exceeding 10%.
State officials say the laws will help ensure premium increases are supported by Illinois-specific claims data and give the Insurance Department authority to order rebates if rates are found to be excessive.
Insurance industry groups oppose the changes, arguing they could lead to higher costs and fewer coverage options, while Pritzker said the measures will increase accountability and protect consumers from unjustified rate hikes.