Welch, House Democrats Advance Reforms to Stop Unfair Homeowners, Auto Insurance Hikes

 

SPRINGFIELD, Ill. – Speaker Emanuel “Chris” Welch and House Democrats are fighting to lower home and auto insurance costs by passing a new bill that ensures Illinois customers are not paying to pad the profits of big corporations or cover corporate losses in high-risk states like Florida or Texas.

“Drivers and homeowners in Illinois shouldn’t be paying more to pad corporate profits, or to offset costs of floods, hurricanes, and global warming in other states,” Welch said. “Washington thinks affordability is a hoax, but here in Illinois we’re going to take charge of what we can control to help families make ends meet, to make life more affordable, and make every day a little easier for us all.”

Homeowners across Illinois have seen insurance plans rise by nearly 30% in the last year, raising concerns that Illinois residents are footing the bill for other states at high risk of natural disasters. 

In order to reduce costs for Illinois customers, Welch and House Democrats passed Senate Bill 1486, which takes several steps to rein in rising insurance costs by:

  • Empowering experts at the Illinois Department of Insurance to reject unfair rate increases by subjecting all Illinois homeowners insurance, fire insurance, and auto insurance policies to a comprehensive rate review process.

  • Requiring insurance companies give customers 60 days of notice before double-digit rate increases can take effect—giving people time to shop for an alternative and encouraging competition to bring down costs.

  • Reducing auto insurance rates for drivers over the age of 55 who complete a four-hour defensive driving program or e-learning course.

 
Andrea Garcia