Illinois House Passes SB 714 in 70-38 Vote, Sending Auto Insurance Rate Reform to Pritzker

The Illinois House voted 70-38 on Wednesday night to pass Senate Bill 714, sending the auto insurance rate-review measure to Gov. JB Pritzker's desk for his signature. The legislation will let the Illinois Department of Insurance challenge premiums it finds excessive and force insurers to give 30 days' notice before raising any policy more than 10%.

One representative voted present. The Senate cleared the same bill 42-14 on May 13, 2026, with one member voting present.

What SB 714 Does

The bill targets two practices common in Illinois auto pricing today. Carriers can raise renewal premiums by any amount without alerting drivers before the renewal letter lands. Illinois also sits as one of only two states whose insurance regulator has no formal authority to review or block auto rate filings, with Wyoming being the other.

SB 714 attacks both gaps in one package. The 30-day notification rule applies to any renewal price increase above 10%, requiring carriers to send written notice before the new policy term begins. The rate-review provision empowers the Illinois Department of Insurance to declare a filing excessive, inadequate, or unfairly discriminatory; companies can request an administrative hearing if the agency rejects their numbers. State regulators also gain authority to order rebates on premiums later judged excessive.

What Sponsors and Opponents Said

Rep. Thaddeus Jones (D-Calumet City), the bill's chief House sponsor, framed the vote as consumer protection.

"Sometimes change is good when we're talking about consumer protection and affordability to residents. We want to make sure that the auto industry comes into compliance with the Department of Insurance," said Rep. Thaddeus Jones (D-Calumet City).

Opponents argued Illinois already has functioning insurance markets and that new oversight will discourage carriers from writing policies in the state. Rep. CD Davidsmeyer (R-Jacksonville) pushed back against the rate-review concept directly.

"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. 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," said Rep. CD Davidsmeyer (R-Jacksonville).

What It Means for Illinois Drivers

Illinois has roughly 8.5 million registered drivers, per data from the Secretary of State's office, paying an average of $2,376 a year for full coverage and $667 for liability-only policies, according to Bankrate's 2026 figures. Both rates run below the $2,697 and $820 national averages by 12% and 19%, respectively.

The 30-day notice rule is the change most drivers will see first. A renewal letter that today arrives with a new premium and a short turnaround will, after the law takes effect, land at least a month before the policy term ends if the increase exceeds 10%. That gap gives drivers concrete time to compare Illinois auto quotes and switch carriers before the higher bill kicks in.

The rate-review piece carries more weight long-term. Today an Illinois insurer files new rates with the Department of Insurance and starts collecting the higher premiums immediately. Under SB 714, those filings remain effective on day one, but the department can audit them, hold an administrative hearing, and reject the numbers if it finds them excessive. Carriers ordered to refund overcharges would have to rebate affected customers.

State Farm, the state's largest auto carrier, dropped Illinois rates 5.7% in July 2025 and another 9.6% in December, a combined 15% decrease through year-end. Those cuts arrived during the same period this legislation moved through the Capitol.

Provision	What it requires	When it starts
Renewal notice	30 days' advance notice for any renewal hike above 10%	After Pritzker signs
Rate review	DOI may reject excessive, inadequate, or unfairly discriminatory rates	New filings after July 1, 2027
Refund authority	DOI may order rebates on premiums later judged excessive	New filings after July 1, 2027
Cost-shifting ban	Carriers must use credible, state-specific data when setting rates	New filings after July 1, 2027

Sources: Senate Bill 714 text and Capitol News Illinois reporting on the combined homeowners-auto package. Effective dates assume Pritzker signs the bill, which his office has signaled he will do.

The Bigger Picture: Illinois Joins the Rest of the Country

SB 714 closes a regulatory gap that has set Illinois apart for decades. Forty-eight states already give their insurance commissioner some form of prior- or post-approval authority over auto rate filings, leaving Illinois and Wyoming as the exceptions. Secretary of State Alexi Giannoulias, who championed the bill through his statewide Driving Change initiative, said the change brings Illinois in line with the rest of the country.

Industry trade groups warned the rules will backfire. The Illinois Insurance Association, the American Property Casualty Insurance Association, and the National Association of Mutual Insurance Companies issued a joint statement calling the legislation "one of the most sweeping and harmful insurance regulatory overhauls in state history." Carriers argue the framework will tighten supply and push premiums upward as some insurers pull back or exit Illinois entirely.

The bill also bars insurers from "cost-shifting." Companies must use credible, state-specific data when pricing Illinois policies rather than spreading losses from out-of-state hurricanes, wildfires, or hail storms across Illinois policyholders. That provision targets a long-standing complaint from consumer advocates pushing SB 714 through the Senate: that Illinois drivers subsidize disaster losses they had no role in creating.

What Illinois Drivers Should Do Now

Looking Ahead: Pritzker's Signature and the 2027 Rollout

Pritzker's office worked with sponsors on the final language and has signaled he will sign the bill. Once enacted, the 30-day notification rule applies on the law's effective date, while the rate-review and refund provisions kick in for filings submitted after July 1, 2027. The Department of Insurance will need to write implementing regulations and add staff for the expanded review work before the 2027 deadline arrives.

Watch for industry filings in the months ahead. Insurers worried about scrutiny may submit new Illinois rate proposals before July 2027 to lock in current pricing under the existing review-free framework. If that happens at scale, Illinois drivers could face one more round of increases before the new oversight engages, even as State Farm's recent 15% combined cut moves in the opposite direction.

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