CHICAGO— Governor JB Pritzker today signed HB 4273 and SB 714 into law, delivering reforms that will make Illinois’ homeowners and auto insurance markets more transparent, equitable, and accountable to consumers.
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“For too long, Illinois working families have been forced to pay higher insurance bills without receiving a clear explanation of why their rates went up,” said Governor JB Pritzker. “That changes today. These commonsense reforms will bring greater transparency and accountability to the insurance industry while preserving the competitive market that has served Illinois consumers. At a time when families are feeling squeezed by rising costs, we are taking action to ensure Illinoisans receive a fair deal when protecting their homes and cars.”
“During this affordability crisis, no family can afford to pay more for the same service they used last year. With these two laws on the books, we’re making sure no one is surprised when they open an insurance bill at the end of the month,” said Lieutenant Governor Juliana Stratton. “The rates you pay will be based on fair and transparent factors because you should know exactly where your money is going.”
“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,” said Illinois Secretary of State Alexi Giannoulias. “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.”
“Auto insurance are one of the most costly bills a consumer can pay – but people who rely on their car to get them to work, school and appointments can’t simply go without coverage,” said State Senator Ram Villivalam (D-Chicago). “It’s time we hold auto insurers accountable and implement policies that prevent unpredictable premium increases on working-class families.”
“Major carriers have imposed double-digit rate hikes, leaving many hard-working families struggling to afford the very insurance meant to protect their most valuable asset,” said State Senator Michael E. Hastings (D - Frankfort. “These are real families being forced to choose between paying for their insurance premium or for groceries at the store.”
"Illinois families deserve stability, whether they're paying for a home or a vehicle," said State Rep. Thaddeus Jones (D-Calumet City). "As expenses continue to rise, no one should have to shoulder higher insurance costs because of unfair industry practices. These measures help make homeownership and vehicle ownership more affordable by increasing transparency, providing greater consumer protections and holding the insurance industry more accountable."
"SB 714 and HB 4273 deliver meaningful consumer protections for Illinois homeowners and drivers by increasing transparency, requiring advance notice of significant premium increases, and ensuring insurance rates are based on Illinois-specific risks—not losses in other states,” said Phillipe Largent, State Director of AARP Illinois. “Just as importantly, SB 714 makes it easier for older drivers to participate in proven driver safety courses that help them stay safe behind the wheel, adapt to today's vehicle technology, and continue qualifying for valuable insurance discounts. Together, these commonsense reforms will help protect consumers and strengthen financial security for families across Illinois."
“Thanks to Governor Pritzker’s continuing leadership and commitment to increase protections for Illinoisans, no longer will Illinois residents be the only insureds in the country not protected against unfair rating practices by insurers,” said Director Gillespie. “The Department of Insurance stands ready to implement the provisions of these bills to protect Illinois insurance consumers.”
Protecting Illinois Families from Unfair Insurance Costs
Illinois has long been the only state in the nation without the authority to review and challenge unjustified homeowner and auto insurance rates. HB 4273 and SB 714 give the Illinois Department of Insurance (DOI) the tools to protect consumers from unfair price increases while maintaining the competitive insurance market that has served Illinois residents.
The legislation follows Governor Pritzker’s call for stronger consumer protections after State Farm proposed a 27% increase to homeowners’ insurance premiums, deductibles, and other out-of-pocket costs. At the time, the Governor directed DOI to use all available regulatory authority to protect Illinois homeowners and called on the General Assembly to enact legislation preventing severe and unjustified rate increases.
Together, HB 4273 and SB 714 ensure insurance companies can continue competing for business in Illinois while giving families confidence that the rates they pay are based on fair, transparent, and state-specific factors.
Under the new laws:
Home and Auto Insurance companies must justify proposed homeowners and auto insurance rates.
DOI may object to rates that are excessive, inadequate, or unfairly discriminatory.
Insurers cannot increase rates on Illinois policyholders to cover losses associated with out-of-state disasters, including hurricanes and wildfires.
Governor Pritzker’s Affordability Agenda to Lower Costs
The new insurance protections build on Governor Pritzker’s broader affordability agenda, which is delivering direct relief to working families while lowering the cost of everyday necessities.
This year, Governor Pritzker worked with the General Assembly to:
Establish a statewide sales tax holiday from August 7 through August 16, helping families save on clothing, school supplies, and other essentials.
Pause the annual increase in the state motor fuel tax for one year, providing relief for drivers across Illinois.
Invest $100 million to the expand access to affordable, nutritious food including providing relief to working families who have been kicked off of SNAP by the Trump Administration.
