SPRINGFIELD, Ill. (WAND) — Illinois Secretary of State Alexi Giannoulias is calling on Gov. JB Pritzker to sign a massive auto insurance reform plan into law. Democratic leaders say it has taken nearly four years to crack down on the auto insurance industry.

Senate Bill 714 could ban insurance companies from increasing auto premiums by more than 10% without notifying consumers 30 days before their renewal date. The Illinois Department of Insurance would also be responsible for ensuring rates are fairer.

"For years, Illinois families have watched their auto insurance premiums climb higher and higher even when they had spotless driving records, never filed a claim and did everything right," Giannoulias said Thursday.

However, the insurance industry argues this change could harm consumers through higher auto rates and fewer coverage options. They stress Illinois has benefited from one of the most competitive auto insurance markets in the country. 

"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," said Rep. CD Davidsmeyer (R-Jacksonville). "So, I just don't think there's a need for this review unless there was some glaring reason why Illinois is failing insurance customers."

Sponsors said Illinois is one of two states with no process to review auto insurance rates before they take effect. Sen. Ram Villivalam (D-Chicago) said this plan will improve safety, accountability, affordability and equity.

"To look at this legislation and see the measures that we've taken to address discrimination and the excessive rates that are put on certain communities, I think is a huge step forward," Villivalam said.

These changes would go into effect July 1, 2027, if the governor signs the bill into law.

Pritzker announced his support for the auto insurance reform plan shortly after the bill passed out of the House on May 27. The governor says too many families have dealt with unexplained, unfair insurance price hikes on their cars, and this legislation will help protect consumers while maintaining the core principles the Illinois business community is built on. 

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