SPRINGFIELD, Ill. (WAND) — The Illinois Insurance Association hopes the Illinois Senate will not move forward with a massive reform plan for auto and homeowners insurance. Industry leaders told WAND News that new data shows Illinois has the sixth cheapest auto insurance rates in the country.

State representatives passed a bill in late March to require insurance companies give homeowners at least 60 days notice before non-renewal, changes in coverage, and premium increases over 10%. Insurers could also have to use state specific data to set rates for homeowners.

"Insurance isn't a luxury. It's a necessity," said Rep. Thaddeus Jones (D-Calumet City). "And yet, the way rates are determined often feels disconnected to our residents, constituents, and from peoples' actual behaviors."

Illinois Insurance Association Executive Director Kevin Martin said this plan could cause homeowner insurance premiums to increase on average up to 20% or $230.

"The more regulatory burdens you put on through legislation, that will do nothing more than increase costs and increase premiums that people are going to have to pay," Martin said Friday.

This also comes as the WAND Weather Team reports Illinois leads the nation in tornadoes, hail and wind reports so far this year. Martin said Illinois has seen 80 tornadoes, nearly 150 reports of hail and 245 high wind reports.

"When you throw all of those into a homeowner's market, that's increased costs and claims," Martin said.

The Illinois Department of Insurance could be responsible for ensuring auto rates are not excessive, inadequate or unfairly discriminatory. 

However, Martin notes U.S. News and World Report found Illinois has an average annual rate of roughly $1,650 and the lowest auto premium is set by Travelers Insurance at $1,208 per year.

"If they think the company they're with now is charging them too much for their homeowners or auto insurance, you've got a lot more companies you can turn to and look for them to provide you with another product that might be cheaper," Martin said.

The Illinois Senate returns to Springfield Tuesday, but sponsors are continuing negotiations with the industry before calling the bill for a vote. 

Senate Bill 1486 passed out of the House on a 66-40 vote with two representatives voting present on March 24.

Copyright 2026. WAND TV. All rights reserved.