Illinois bill targets how car insurance rates are set
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Illinois lawmakers are considering changes to how car insurance rates are set.
Why it matters: Senate Bill 1486, which passed the House in March, would give the Illinois Department of Insurance new authority to review and challenge rates.
- It would also require insurance providers to give at least 60 days' notice before any excessive rate hike and to determine prices based on driving record rather than age, credit score or ZIP code.
State of play: The legislation is being pushed by Secretary of State Alexi Giannoulias, following his office's yearlong campaign to survey drivers about how much they pay. Giannoulias' office found that:
- Drivers aged 80–84 pay up to 72% more than those in their mid-50s.
- Drivers with poor credit can pay more than 2.7 times what those with excellent credit pay.
- Premiums can vary by as much as 2.5 times between ZIP codes.
The intrigue: Illinois and Wyoming are the only two states without any rate review process, according to Giannoulias' office.

Zoom out: Rates fell from 2024 to 2025, but the average full-coverage premium is still up 42% over the past four years, according to Insurify.
- The typical U.S. driver pays $2,144 per year for full-coverage car insurance, making it one of Americans' largest baseline expenses.
- While some states, like California, ban factors such as credit score from being used in determining rates, Illinois currently does not.
- As a result, Illinois drivers with excellent credit pay an average of $1,504 annually, compared with $2,233 for drivers with bad credit, according to Insurify.
Yes, but: Illinois has the sixth-lowest annual rates, U.S. News and World Report said last month.
The other side: The Illinois bill would move the state to a "one size fits all" approach that would "ultimately raise prices for Illinois consumers" and possibly squash competition, the National Association of Mutual Insurance Companies said in a statement after the bill passed the state House.
- Illinois' current insurance market relies on "data, risk modeling, and statistical analysis to ensure rates are fair, accurate, and sufficient to pay claims," NAMIC said.
What's next: SB 1486 is in the Senate without a scheduled vote date.
