Illinois bill to cap progressive auto insurance rates fails by narrow margin
A bill aiming to regulate insurance premiums in Illinois failed to pass the House this week, falling short by four votes. The legislation, backed by Gov. JB Pritzker, sought to protect consumers from excessive rate hikes. It would have given the Department of Insurance power to review and refund progressive auto insurance premiums, and required companies to justify increases using Illinois-specific data.
The bill faced opposition from the Illinois Insurance Association, whose executive director, Kevin Martin, argued it would drive up costs for consumers. Rep. Jeff Keicher, R-Sycamore, echoed this sentiment, warning that the bill could create uncertainty and lead to higher progressive car insurance premiums.
The bill's defeat was attributed to last-minute lobbying by the insurance industry, according to Sen. Michael Hastings, D-Frankfort, who plans to reintroduce it in the 2026 session. Illinois is currently the only state without a law prohibiting excessive or discriminatory premiums for homeowners or auto insurance, and without authority to review insurance rates. The bill's failure comes after a previous attempt to regulate homeowners' insurance rates was also rejected by the House.
The failed bill would have required insurance companies to give customers 60 days' notice of significant progressive insurance premium increases and prohibited excessive or discriminatory charges. Its defeat leaves Illinois consumers without additional protections against substantial rate hikes, such as the recent 27.2% increase announced by State Farm.
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