Welch, House Democrats Crack Down on Unfair Insurance Hikes with New Affordability Laws

WESTCHESTER, Ill. – Drivers and homeowners will be protected from double-digit insurance increases under a new affordability law backed by Speaker Emanuel “Chris” Welch and House Democrats, empowering watchdogs to hold big insurance companies accountable.

“Drivers and homeowners in Illinois shouldn’t be paying more to pad corporate profits, or offset costs in other higher-risk states,” Welch said. “That’s why House Democrats are demanding affordability and accountability—with new laws empowering experts to reject home and auto insurance rates that only pad corporate profits, making insurance companies give proper notice before hitting customers with double-digit increases, and cutting costs for seniors on fixed incomes.”

Last year, many Illinois homeowners saw their premiums increase by nearly 30 percent, leaving many to question whether these extreme hikes are being used to cover insurance losses in states like Florida, where there is a greater risk of severe weather damage.

Welch and House Democrats are working to protect Illinois ratepayers by passing Senate Bill 714 and House Bill 4273, which empower state insurance experts to review annual home and auto insurance rates, and reject increases that simply pad profits or ask Illinois customers to cover the cost of higher-risk states. Insurers will also be required to give customers proper notice before a double-digit rate increase takes effect, giving people time to shop for a lower-cost plan and encouraging competition.

The new law also creates a senior auto insurance discount for drivers over 55 who pass a short defensive driving program, which can be completed online.

The bills were signed into law this week.