Home, auto insurers respond to new Illinois laws

Illinois insurance companies are responding to new state laws that give regulators authority to review and approve home and auto insurance rate changes.

Gov. JB Pritzker signed the bills Tuesday. Illinois and Wyoming were previously the only states without regulatory control over insurance rates. The new laws take effect July 1, 2027.

House Bill 4273 addresses homeowners insurance. It requires insurers to give customers 60 days’ notice before raising premiums by more than 10 percent. The law also gives the Illinois Department of Insurance authority to review and approve rate changes.

Senate Bill 714 addresses auto insurance. Insurers must provide 30 days’ notice before increasing premiums by more than 10 percent. The law also allows the department to review rates and order rebates when rates are excessive or unfairly discriminatory.

State Farm acknowledged the new legislation but said lawmakers must do more to address insurance costs.

“Illinois should now prioritize the true drivers of cost, so policyholders see meaningful improvements in affordability and stability over time,” State Farm said in a statement.

The company called the legislation sweeping. It said the bills do not address storm-chasing fraud, building resiliency or legal system abuse.

COUNTRY Financial expressed concern about the laws’ long-term impact.

“Going forward, it will be important to monitor the ultimate long-term impacts of this on insurance affordability and availability here in Illinois,” COUNTRY Financial said.

The legislation follows recent rate increases across Illinois. State Farm announced an average statewide homeowners insurance increase of 27.2 percent more than a year ago. Illinois motorists also saw an average 18 percent increase in auto insurance rates, according to Secretary of State Alexi Giannoulias.

Jake Leonard, Executive Editor-In-Chief

Website |  + postsBio

Jake Leonard, a broadcast media and journalism veteran, is the editor-in-chief of Heartland Newsfeed. Leonard is also GM and program director of Heartland Newsfeed Radio Network, wrestling editor and contributing writer for Ambush Sports, a contributing writer for My Sports Vote and Midwest Sports Network, and a former contributor to Bleacher Report and Overtime Heroics. He resides at home in Nokomis, Ill. with his dog Buster.

• Jake Leonard, Executive Editor-In-Chief

  Salem’s Deuel Veterinary to close
• Jake Leonard, Executive Editor-In-Chief

  Champaign County woman dies in interstate crash in Effingham County
• Jake Leonard, Executive Editor-In-Chief

  Truesdale man faces felony domestic assault charge
• Jake Leonard, Executive Editor-In-Chief

  Westbound I-64 in East St. Louis closes beginning August 14