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Since 1979, Dov Apfel has been passionate about advocating for birth injury and medical malpractice victims. Mr. Apfel’s career-long record of achievements in birth injury litigation, education, and advocacy has been recognized by the Executive Board of the Birth Trauma Litigation Group of the American Association for Justice. His expertise is demonstrated by his numerous awards, presentations on birth injury topics at legal conferences for organizations like the AAJ and ATLA, and articles published by Trial Magazine and many others.
Read Bio
Since 1979, Dov Apfel has been passionate about advocating for birth injury and medical malpractice victims. Mr. Apfel’s career-long record of achievements in birth injury litigation, education, and advocacy has been recognized by the Executive Board of the Birth Trauma Litigation Group of the American Association for Justice. His expertise is demonstrated by his numerous awards, presentations on birth injury topics at legal conferences for organizations like the AAJ and ATLA, and articles published by Trial Magazine and many others.
Key Takeaways
Rising auto insurance costs have become a growing concern for drivers across Illinois. According to the Secretary of State’s office, average full-coverage auto insurance costs in Illinois increased by 18% between 2023 and 2024. Many drivers have also raised concerns about how insurance companies determine rates and whether factors unrelated to driving behavior affect what they pay.
In response, Illinois lawmakers said that they will pass Senate Bill 714 as part of the Secretary of State’s Driving Change initiative, sending the landmark reform package to the governor’s desk as early as late May. The legislation is designed to increase transparency, strengthen oversight of auto insurance rate increases, and provide additional consumer protections. While the law does not change how car accident claims are handled or how fault is determined in Illinois car accidents, it may affect how insurance companies set and adjust rates in the future.
Key Takeaways
- Senate Bill 714 expands the Illinois Department of Insurance’s authority to review auto insurance rate filings and challenge rates deemed excessive, inadequate, or unfairly discriminatory.
- Insurers must provide drivers with at least 30 days’ advance notice before raising a renewal premium by more than 10%, giving consumers more time to evaluate their options.
- The reforms are intended to improve transparency and strengthen consumer protections, though their effect on future insurance premiums remains unclear.
Why Illinois Lawmakers Pushed for Auto Insurance Reform
The push for reform began through the Secretary of State’s Driving Change initiative, which focused on rising insurance costs and concerns about how premiums are calculated.
Through town halls, community outreach, and an online feedback portal, nearly 2,000 Illinois residents shared concerns about increasing premiums, limited transparency, and pricing practices they believed were unfair.
Supporters of the legislation argued that Illinois also lacked many of the consumer protections available in other states. They also noted that Illinois was one of only two states without a formal process for reviewing and challenging certain insurance rate increases.
The result was Senate Bill 714, which lawmakers say is intended to increase accountability while giving regulators more tools to review insurance pricing practices.
What SB 714 Changes for Illinois Drivers
Senate Bill 714 introduces several changes intended to provide greater oversight of auto insurance rates.
Under the legislation, auto insurers must provide at least 30 days’ notice before increasing a renewal premium by more than 10%. This gives drivers additional time to review their coverage, compare options, and understand why their rates are changing.
The law also gives the Illinois Department of Insurance greater authority to review rate filings and challenge rates deemed excessive, inadequate, or unfairly discriminatory. If regulators determine that a rate filing does not meet those standards, they may initiate a review process and require corrective action.
In addition, the law is intended to prevent insurers from passing certain out-of-state costs onto Illinois drivers. It also expands access to premium discounts for drivers age 55 and older who complete approved defensive driving courses.
What Does ‘Unfairly Discriminatory’ Mean?
One of the most discussed parts of the legislation concerns rates deemed unfairly discriminatory.
In general, insurance companies use many factors when determining premiums. Some factors relate directly to driving risk, while others may include where a person lives, their age, or their credit history.
Supporters of the Driving Change initiative argued that some non-driving factors can result in higher premiums for certain groups of drivers, even when those drivers have similar driving records. The legislation seeks to give regulators greater authority to review whether insurance rates reflect actual risk rather than factors that may create unfair pricing disparities.
The law does not prohibit every non-driving factor insurers use. Instead, it creates additional oversight and review mechanisms intended to address rates that may be considered excessive or unfair.
What Hasn't Changed After SB 714
Although Senate Bill 714 introduces new consumer protections, many aspects of Illinois auto insurance remain the same.
Many of the rules related to Illinois auto insurance remain the same, including the requirement that drivers carry liability insurance. Insurance companies will continue to evaluate risk when setting premiums, and policyholders must still review their coverage to ensure it meets their needs.
The legislation also does not guarantee lower premiums. Insurance rates can still change based on market conditions, claims history, repair costs, and other factors that insurers consider when evaluating risk.
For many drivers, the biggest difference may be increased transparency and oversight rather than immediate changes to coverage costs.
Will These Changes Lower Insurance Costs?
Many Illinois drivers want to know whether these reforms will reduce their insurance premiums.
The honest answer is that it is too early to know.
Supporters believe the law will create greater accountability and help prevent unjustified rate increases. They argue that additional oversight may lead to fairer pricing and greater transparency for consumers.
On the other hand, critics, including some insurance industry groups, argue that increased regulation could make the market less competitive and lead to higher costs over time.
Because the law does not take effect until July 1, 2027, its long-term impact on premiums remains uncertain. It may take several years before drivers see how the changes affect insurance rates across Illinois.
What Drivers Should Do If They Receive a Large Rate Increase
If you receive notice that your auto insurance premium is increasing, start by reviewing the notice carefully to understand the amount of the increase and when it will take effect. Compare your current coverage with other available options and make sure you understand any changes to your policy.
If the increase is unclear, contact your insurance company and ask for an explanation. Keep records of any communications and save copies of notices or other documents related to your policy.
Drivers who believe a rate increase may be unfair can also contact the Illinois Department of Insurance. The department accepts consumer complaints and may be able to provide information about available options or assist with concerns about insurance practices.
The reforms created by Senate Bill 714 are intended to provide greater transparency and oversight, but insurance rates may still increase over time. Understanding your policy, asking questions, and knowing where to turn for assistance can help you make informed decisions about your coverage.
When Insurance Questions Affect Your Claim
Changes to Illinois insurance laws and regulations can affect how drivers understand their coverage and their rights. Taking time to understand your policy before an accident happens may help reduce confusion if you ever need to file a claim or deal with an insurance company after a car crash in Illinois.
Levin & Perconti has more than 400 years of combined experience helping injured people navigate complex insurance and injury-related issues. If you have questions about insurance coverage after an accident or want to better understand your legal options, call (312) 332-2872 or contact Levin & Perconti online to discuss your situation with a car accident lawyer.
