Can Illinois Insurers Raise Car Insurance Rates Under the 2027 SB 714 Law?

Every figure in this article is traced to the sources listed under Sources.

Yes. Illinois insurers may still raise auto premiums. Gov. JB Pritzker signed Senate Bill 714 (Public Act 104-0753) on August 4, 2026. The law takes effect July 1, 2027: covered rate filings made on or after that date become subject to review by the Illinois Department of Insurance (IDOI), and covered renewal increases of more than 10% require at least 30 days’ notice when the renewal notice is sent on or after that date. These provisions are not in force today.

Can Illinois Insurers Raise Your Car Insurance Rates?

Yes. SB 714 does not cap premiums. Its rate-review provisions apply to covered filings made on or after July 1, 2027; the 30-day notice rule applies to covered renewal-premium notices sent on or after that date. The Act creates a post-filing review process rather than universal prior approval for every premium change. The new provisions are not in force today.

Capitol News Illinois reported that before the signing, Illinois was one of two states, along with Wyoming, without a meaningful process to review auto-insurance rate increases before they took effect.

What Does Illinois SB 714 Change for Drivers?

Once the law takes effect on July 1, 2027, it makes four practical changes.

How Does Illinois Compare With New York’s Prior-Approval Rule?

The two states take different approaches. Illinois SB 714 creates a post-filing review process for covered filings made on or after July 1, 2027. In New York, the FY 2027 budget changes and DFS’s proposed implementing regulation are scheduled to take effect November 27, 2026. They require prior approval for covered overall average rate-level increases for nonbusiness/private-passenger auto insurance, including increases of 5% or less that previously could qualify for flex-rating treatment. This is not a separate approval for every individual policy premium adjustment, and DFS says filings submitted before November 27 remain under the current flex-rating provisions. Our guide to New York’s prior-approval rule for auto rate increases has the details.

How Does the 10% Notice Threshold Work? A Worked Example

The notice rule applies to covered renewal increases of more than 10% when the renewal-premium notice is sent on or after July 1, 2027. The figures below only illustrate the arithmetic; a real policy’s calculation depends on the applicable statutory scope and facts.

1. Find 10% of the premium$1,800 × 0.10 = $180.
2. Add it to the premium$1,800 + $180 = $1,980. That is the threshold.
3. Compare the renewalA renewal at $1,980 is exactly 10% higher, which is not more than 10%. A renewal at $1,981 is more than 10% higher and would need the 30-day notice.

As a simple arithmetic check, multiply the relevant comparison premium by 1.10. A figure above that amount is mathematically more than 10% higher, but this is not a substitute for the insurer’s legally applicable calculation or a determination of whether an exclusion applies.

What Should Illinois Drivers Do Now?

SB 714 does not create a new action drivers must take today. When the relevant provisions take effect, these checks can help you review a renewal notice and understand whether the new rule may apply.

Why Did Illinois Pass This Law?

Supporters pointed to large increases. Secretary of State Alexi Giannoulias said Illinois motorists saw an average 18% auto rate increase in 2024, according to his office. The governor’s release said the law followed his call for stronger protections after State Farm raised homeowners insurance rates an average of 27.2% statewide. That 27.2% figure concerned homeowners insurance, not auto.

Insurance industry officials have said past increases reflected inflation and rising repair costs. Capitol News Illinois also reported that State Farm stated its Illinois auto rates have been falling and that it lowered premiums by an average of 15% in 2025. That is the insurer’s own statement, and we did not confirm it independently. After the signing, three trade groups, the Illinois Insurance Association, the American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies, warned that the laws would lead to higher costs and fewer choices. Pritzker rejected that argument. These are competing positions, and the effect on premiums will not be known until the law is in use.

What Happens Next, and What Is Still Unknown?

The law takes effect July 1, 2027. Its enacted text establishes key deadlines: IDOI must notify an insurer of an actuarial objection within 40 days after receiving a complete filing; the insurer has 30 days after receipt to request a hearing; and the Act sets further deadlines for the hearing and decision. IDOI Director Ann Gillespie said the department stands ready to implement the law. The following implementation and market questions remain:

• How IDOI will apply the standards in future filings. The statute sets the review and hearing deadlines, but the outcome for a particular filing will depend on the evidence and application of the law.
• Which notices and filings are covered first. The statutory dates are explicit: the notice amendments apply to renewal-premium notices sent on or after July 1, 2027, and the rate-review article applies to filings made on or after that date.
• Which policies fall outside the new provisions. The statute cross-references policy definitions in §§ 143.13(a) and 143.11, so the rule is not a blanket rule for every commercial, fleet, or auto-related insurance product. Consult the enacted Act for the precise policy definition.
• The effect on premiums. The sources we reviewed do not estimate it.

What This Article Does Not Cover

This article covers the personal-auto provisions of Illinois SB 714 and the New York rate-filing comparison. It does not cover the separate homeowners-insurance law (HB 4273), provide a quote, or predict any insurer’s rates. SB 714’s scope is defined by the policy categories and cross-references in the enacted Act; it should not be read as applying to every commercial or auto-related policy. For a specific policy, check with your insurer, a licensed agent, or IDOI.

How We Verified This Article

For this revision, we checked the enacted text of Public Act 104-0753 (SB 714) published by the Illinois General Assembly, the Governor’s and Secretary of State’s August 4, 2026 releases, Capitol News Illinois’ August 4 report and May 27 report on the 2024 increase, and New York DFS’s September 9 announcement and July 1, 2026 circular letter. The enacted Illinois text—not press-release shorthand—controls the description of scope, timing, the review procedure, the notice exclusions, and the use of state-specific loss data. The example above is arithmetic for illustration only, not a statutory premium-calculation formula or a prediction of the impact on rates.

Frequently Asked Questions About Illinois Car Insurance Rate Increases

Bottom Line for Illinois Drivers

Illinois insurers can still raise premiums. SB 714’s new provisions are not in force until July 1, 2027. For covered renewal-premium notices sent on or after that date, increases of more than 10% require at least 30 days’ notice, subject to the statutory policy scope and exclusions. For covered rate filings made on or after July 1, 2027, IDOI may object to rates it finds excessive, inadequate, or unfairly discriminatory and a final order may require rebates. The Act does not guarantee lower premiums or categorically ban credit scores, ZIP codes, or every use of out-of-state data.

Until then, read each renewal notice, compare the new premium with the old one in dollars and percent, and compare quotes with the same coverage.