Illinois pushes rate-hike protections forward despite consumer cost
fears
[March 24, 2026]
By Sean Reed | The Center Square
(The Center Square) – Home and auto insurance providers in Illinois
could face new oversight and regulation after a Senate bill recently
passed the House, despite concerns from Republican lawmakers and
insurance industry groups.
The bill passed primarily along party lines, even though GOP
representatives and insurance companies warned it could drive up
premiums and destabilize the state’s insurance market.
Senate Bill 1486 would require home and auto insurance providers to
notify consumers of any rate hike more than 10% at least 60 days before
the increased rate taking effect.
It also gives the Illinois Department of Insurance expanded oversight of
rate increases, including the ability to review and challenge raises in
rates deemed unfair or discriminatory, according to the bill’s text.
Insurance groups, such as the American Property Casualty Insurance
Association, have posed concerns that the proposed legislation could
have unintended consequences, such as an increase in premiums and a
reduction in market competition – if insurers decide to leave the state
over the new regulations.
Rep. Jeff Keicher, R-Sycamore, voiced concerns in a committee hearing
and on the house floor before the bill’s passage. An agent for State
Farm, Keicher said his concerns are only in the interest of his
constituents.
“My biggest concern as a member of the industry is Illinois' current
rate setting environment allows for competition and it also allows for
those that do compete in the Illinois insurance market to price their
product to attract folks to come,” Keicher said.
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Damaged vehicle after a car crash with airbag deployment, May 5,
2025. Photo: Carleen Johnson / The Center Square
Notable supporters in the state – including Gov. J.B. Pritzker,
Secretary of State Alexi Giannoulias and top Democratic legislators
– have all said the bill is to hold insurers accountable to their
policyholders in the state. Pritzker urged state lawmakers to expand
consumer protections in the wake of a major rate hike by State Farm
last July.
Keicher said home insurance costs are climbing in part because of an
overall increase in the cost of claims for insurers. He pointed to
rising home values, higher prices for building materials, and a
predatory practice known as storm chasing, in which bad-faith
contractors canvass storm‑damaged neighborhoods, offering free
inspections and pushing unnecessary repairs to trigger insurance
payouts.
Rep. Thaddeus Jones, D-South Holland, spoke to the intentions of the
bill and its amendments before the House, saying Illinois is one of
only two states in the nation that doesn’t have any form of rate
review.
“Consumers deserve to understand how their rates are set. They
deserve a system that is fair, not one that punishes them for
circumstances that they can't control, and they deserve leaders that
are willing to take a hard look at what's driving their increases,”
Jones said.
The bill returns to the Senate in its updated form.
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