05/28/2026
What will Illinois SB 714 do to auto insurance premiums for good drivers?
Short answer: Auto rates are going to increase across all policyholders.
Illinois SB 714 just passed both houses and is heading to the Governor's Desk to be signed into law. This bill is being promoted as a way to control auto insurance rates, by capping the amount carriers can increase renewal premiums at 10%.
Supporters say it will add oversight, notice rules, and consumer protections.
Sounds good on paper, right? Wrong! Insurance is not magic. It’s math, and math has a funny way of showing up on your renewal bill.
👉 The big concern is this:
If insurance carriers are limited in how they can charge higher-risk drivers, the cost does not disappear. It gets spread. That means safe drivers, good drivers, and businesses with strong driving records could end up helping pay for the losses of drivers who create more risk.
In plain English:
Your clean driving will not help you as much. That is a big deal for business owners, contractors, delivery fleets, real estate investors, and anyone with vehicles on the road.
The second concern? Competition.
Auto liability carriers need to price risk quickly and accurately. If the Illinois market becomes harder to rate, harder to file, or harder to adjust, some carriers may pull back, and when carriers pull back, you get fewer choices.
Fewer choices result in higher prices. Not lower ones.
A 2025 J.D. Power insurance shopping study found that 57% of auto insurance customers shopped for coverage, up from 49%. Drivers are already looking for better options. Less carrier competition would make that harder.
The bill also gives the Illinois Department of Insurance more authority to review rates.
But here’s the risk:
Regulating the price of insurance does not reduce the cost of claims. Cars still cost more to repair. Medical bills are still high. Distracted driving is still real, and lawsuits are not getting cheaper.
So what should you do next?
1. Review your auto policy early. Do not wait until renewal week. That is when options get thin.
2. Ask how your carrier prices your risk. Your loss history, drivers, vehicle use, garaging, and limits all matter.
3. Keep driver records clean. A clean record lends to more carriers offering terms. Carriers will be less willing to offer a quote to a driver with claims history. Motor vehicle reports, driver training, and written vehicle safety rules can help.
4. Work with an agent who has market access. AKA an Independent. If fewer carriers compete in Illinois, relationships and options matter more.
Bottom line: SB 714 may sound like a rate-control bill, but it could shift costs to better drivers and reduce competition for auto liability carriers in Illinois. Less competition rarely leads to better pricing.
What do you think — will this help Illinois drivers, or make the market tighter?
