Legislation spearheaded by Illinois Secretary of State Alexi Giannoulias to address unfair and discriminatory auto insurance practices has passed the Illinois Senate. Senate Bill 714, part of Giannoulias’ broader Driving Change initiative, aims to tackle rising and increasingly unaffordable auto insurance costs across the state.
Illinois is currently one of only two states without a formal process to review or challenge insurance rate hikes. “Car insurance rates are crushing Illinois families,” Giannoulias said. “Even worse, auto insurance companies aren’t basing these premiums on your driving records. As Secretary of State, I’ve been clear that Illinois drivers deserve fair and affordable auto insurance, especially those that have never had a driving violation. This legislation is about protecting consumers, increasing fairness, and ensuring insurance companies are using legitimate factors, not discriminatory practices, when setting rates.”
Key Provisions of Senate Bill 714:
Requires insurers to give at least 30 days’ notice before increasing renewal premiums by more than 10%.
Prohibits auto insurance rates that are excessive, inadequate, or unfairly discriminatory—defined as rates not reflecting actual differences in expected losses and expenses.
Grants the Illinois Department of Insurance greater authority to review rate filings and to challenge rates deemed unfair, including a clear process and timeline for hearings and resolution.
Prevents insurers from shifting costs from out-of-state risks, such as natural disasters, onto Illinois drivers.
Modernizes the National Safety Council’s Defensive Driving Course by aligning in-person and online standards.
The legislation is a direct response to concerns raised during the Secretary of State’s Driving Change campaign, which included town halls and community discussions on the use of non-driving factors in insurance rate setting. An online portal (www.ilsos.gov/drivingchange) was launched to collect feedback from Illinois residents, which helped shape the proposed reforms.
An independent study commissioned by the Secretary of State’s office and conducted by O’Neil Risk Consulting & Algorithmic Auditing (ORCAA) confirmed that many Illinois drivers are paying significantly higher premiums based on non-driving factors unrelated to their driving behavior.
With Illinois auto insurance rates up 18 percent in 2024, the push for reform has gained urgency. Senate Bill 714 now moves to the Illinois House for further consideration.