Legislators, advocates championing car insurance reform welcome Gov. Pritzker’s focus on consumer protections

SPRINGFIELD, Ill. — Gov. J.B. Pritzker outlined multiple policies his administration is proposing to advance consumer protections in the health insurance marketplace during his annual budget address on Wednesday. Among other policies, Gov. Pritzker proposed to subject rate increases for large group health insurance plans to the same rate review process as small group plans, following the enactment of Public Act 103-0106, which the governor signed in June. Now, legislators and advocates are calling for similar action on car insurance.

“We’re grateful to Gov. Pritzker  for his continued leadership in protecting Illinois consumers,” said state Rep. Will Guzzardi. “And we’re excited to partner with him on protecting car insurance customers— that is, any Illinoisan who drives — from discrimination and price gouging as well.”

Illinois is one of only two states that has no rate review process for auto insurance. According to an analysis by Illinois PIRG Education Fund, car insurance rates by top insurers in Illinois have risen nearly $2.4 billion since the start of 2022. The Motor Vehicle Insurance Fairness Act (HB4767 Rep. Guzzardi, SB3213 Sen. Cervantes) would establish a rate review process for car insurance and bar companies from unfairly using non-driving factors to determine car insurance rates.

“Last year, the General Assembly took an important step by empowering Illinois regulators to reject excessive health insurance rate hikes, and we appreciate Gov. Pritzker’s continued focus on consumer protection,” said state Sen. Javier Cervantes. “After two years of billions dollar rate hikes, it’s time to also tackle excessive car insurance rates, and the discriminatory practices that disproportionately impact communities like those I represent.”

“By law, consumers have to purchase health insurance and drivers have to purchase car insurance – it only makes sense that regulators ensure insurance rates are fair and not excessive,” said Illinois PIRG Director Abe Scarr. “2023 should be the last year car insurance companies can raise our rates by anywhere near — let alone more than —  a billion dollars without scrutiny from the public and regulators.”

The House Insurance Committee is holding a subject matter hearing on the legislation Monday, February 26, at 10:00 a.m. CT at the Michael A. Bilandic Building in Chicago.