SPRINGFIELD, Ill. (WAND) — The Illinois House passed the massive auto insurance reform plan Wednesday night.
Sponsors said the bill bans insurance companies from increasing auto premiums by more than 10% without first notifying consumers 30 days before their renewal date.
The Illinois Department of Insurance would be responsible for ensuring auto rates are not excessive, inadequate, or unfairly discriminatory.
“Sometimes change is good when we’re talking about consumer protection and affordability to residents,” said Rep. Thaddeus Jones (D-Calumet City). “We want to make sure that the auto industry comes into compliance with the Department of Insurance.”
Yet, the Illinois Insurance Association believes this plan could harm consumers through higher auto insurance costs and fewer coverage options.
“Nobody wants to pay for something that they don’t want to use, but when it’s there, you’re pretty happy that you’re covered,” said Rep. CD Davidsmeyer (R-Jacksonville). “So, I just don’t think there’s a need for this review unless there was some blaring reason why Illinois is failing insurance customers.”
Senate Bill 714 passed out of the House on a 70-38 vote with one representative voting present. The measure previously received a 42-14 vote in the Senate with one member voting present. It now heads to Gov. JB Pritzker’s desk for final approval.
“Insurance companies are raking in record profits while Illinois families are choosing between their car insurance and groceries,” said Secretary of State Alexi Giannoulias. “Even safe drivers doing everything right are getting hammered with hike after hike. This bill finally gives Illinois the tools every other state but one already has — the power to say no to unfair rates.”
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.