Senate Approves Preston-Backed Measure Targeting Auto Insurance Rate Hikes (Springfield, IL) – Illinois drivers could soon receive greater protections against sharp increases in automobile insurance premiums under legislation supported by State Sen. Willie Preston.
Senate Bill 714, which passed the Illinois Senate Wednesday, would prohibit auto insurance rates from being excessive, inadequate, or unfairly discriminatory while increasing oversight and transparency surrounding premium increases.
Preston, a Chicago Democrat, said the measure is intended to ease financial pressure on working families already struggling with rising living costs.
“People are already stretched thin trying to keep up with the rising cost of living,” Preston said. “When families are paying more for groceries, gas and everyday necessities, they should not also have to worry about unpredictable spikes in their auto insurance bills.”
According to data from Insurify cited by Preston’s office, average full-coverage auto insurance premiums in Illinois increased by 18% between 2023 and 2024, compared to the national average increase of 11.3%.
The legislation would require insurance companies to notify policyholders at least 30 days before renewal if premiums are set to increase by more than 10%.
The bill would also establish a formal review and hearing process through the Illinois Department of Insurance if rates are determined to be excessive, inadequate, or unfairly discriminatory.
In addition, the measure includes provisions aimed at helping older drivers reduce insurance costs. Under the proposal, the Illinois Secretary of State would be allowed to approve defensive driving courses meeting or exceeding National Safety Council standards, enabling residents age 55 and older to qualify for premium discounts after completing the course.
“We need to hold insurance companies accountable for their unfair practices,” Preston said. “Illinoisans deserve transparency and accountability, but instead they are footing the bill for large corporations that are only making auto insurance premiums more and more unaffordable.”
Senate Bill 714 now moves to the Illinois House for further consideration.
Senate Approves Preston-Backed Measure Targeting Auto Insurance Rate Hikes
