PEORIA, Ill. (25 News) – Local insurance companies are weighing in on newly signed Illinois legislation that gives the state authority to review and approve home and auto insurance rate changes.
Governor Pritzker signed the bills Tuesday. Before the signing, Illinois and Wyoming were the only two states in the nation that did not exercise regulatory control over insurance rates. The new laws take effect July 1, 2027.
House Bill 4273, the homeowners insurance bill, requires companies to give customers 60 days’ notice before raising premiums more than 10 percent and gives the Illinois Department of Insurance authority to review and approve rate changes.
Senate Bill 714, the auto insurance bill, requires companies to give customers 30 days’ notice before raising premiums more than 10 percent. It also gives the department authority to review rates and order rebates if rates are found to be excessive or unfairly discriminatory.
State Farm acknowledged the legislation but said more needs to be done, according to 25 News.
“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.
State Farm also called the legislation sweeping but said it does not address underlying cost drivers, including storm-chasing fraud, building resiliency and legal system abuse.
Country Financial expressed cautious concern about the long-term effects.
“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 comes more than a year after Illinois-based State Farm announced it was raising homeowners insurance rates an average of 27.2 percent statewide. It also follows a period in which Illinois motorists saw an average 18 percent hike in auto rates, according to Secretary of State Alexi Giannoulias.
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