Illinois Car Insurance Rates and How They Are Set

Illinois car insurance rates are set by each insurance company, and the state has not had the kind of rate review process most states use. Capitol News Illinois reported in August 2026 that Illinois was one of only two states, with Wyoming, that did not exercise regulatory control over insurance rates ³. That is changing. Senate Bill 714, approved by the Governor on August 4, 2026 as Public Act 104-0753, creates a new rate review process for personal auto insurance that applies to filings made on or after July 1, 2027 ^{1 2}.

Until then, prices are driven mainly by competition between insurers. The Illinois Department of Insurance (IDOI) notes in its shopping guide that hundreds of companies sell insurance in Illinois and prices can vary greatly ⁴. For the personal reasons a renewal can rise regardless of the market, see our guide to why car insurance goes up.

IDOI's shopping guide explains pricing in terms of risk groups: companies set a rate for each group based on the claims paid for the people in that group ⁴. The guide lists the factors insurers commonly use, including age, gender and marital status, coverage limits, driving record, household drivers, location, type and use of the vehicle, commute distance, annual mileage and credit. It says many companies assess credit information and may charge higher premiums depending on it ⁴.

Because Illinois has not regulated auto rates the way most states do, a change in an insurer's Illinois prices has largely been the company's own decision, and two insurers can price the same driver very differently ^{3 4}. Comparing quotes from several insurers is one way to see where a price sits. Our explainer on what a rate filing is covers what filings usually contain in states that publish them.

Public Act 104-0753 adds a new article to the Illinois Insurance Code, "Rates for Automobile Insurance," which applies only to filings made on or after July 1, 2027 ¹. Its main points, as written in the Act:

• Rate standard. Rates shall not be excessive, inadequate or unfairly discriminatory. A rate that is an actuarially sound estimate of the expected value of all future costs of an individual risk transfer meets that standard ¹.
• A 40-day review window. If the department determines through actuarial review that a filing fails the standard, it must notify the company within 40 days after receiving a complete filing, saying what is wrong and what changes are required. If the department does not give notice in that window, the filing is deemed compliant, and the 40 days cannot be waived or extended ¹.
• Hearings and rebates. The company may request a hearing within 30 days of the notice, and the filing stays in effect until the hearing ends and a final order is issued. If the department finds a rate excessive, inadequate or unfairly discriminatory, the final order may set a date after which the filing is no longer effective and any rebates owed to affected consumers ¹.
• Illinois data first. Credible Illinois-specific loss experience must be used in developing rates whenever it is available and statistically reliable, and the Act prohibits shifting costs from other states ¹.

Capitol News Illinois summarized the change as letting insurers keep charging new rates once they are filed, while giving the department authority to review them and order rebates of excess premium ³. The Act describes a review power with deadlines rather than a requirement that every rate be approved before use ¹.

The same Act changes two consumer rules. For renewal premium notices sent on or after July 1, 2027, an insurer may not impose a renewal premium increase of more than 10% on a covered auto policy unless it sends the named insured notice of the increase at least 30 days before the renewal or anniversary date ¹.

Illinois law already requires auto liability rates to include appropriate reductions, as determined by the insurer, for insureds over age 55 who complete an approved crash prevention course; the reduction lasts three years ¹. The Act changes the required classroom course length from 8 hours to 4 hours, and the bill status lists the Act's effective date as July 1, 2027 ^{1 2}.

The recent Illinois auto rate figures we could verify come from a company's own statements. In a February 13, 2026 update on its own newsroom page, State Farm said it had lowered Illinois auto rates twice over the past year by a combined 15 percent on average, down 5.7% in July 2025 and down another 9.6% in December ⁶. State Farm's page does not name the legal company that filed, and its percentages are averages across existing Illinois auto policyholders, not a prediction for any one renewal ⁶. We are not affiliated with the insurers named.

State Farm opposed the new law, writing in May 2026 that the auto legislation would impose a form of prior approval rate regulation ⁶. That is the company's view of a bill it lobbied against; the text of the Act is set out above ¹.

IDOI's shopping guide says Illinois law (625 ILCS 5/7-601) requires vehicle owners to carry minimum auto liability insurance, and that the minimum limits under 625 ILCS 5/7-203 are $25,000 for bodily injury to one person, $50,000 for bodily injury per accident and $20,000 for property damage per accident ⁴. The guide lists uninsured motorist bodily injury minimum limits of $25,000 per person and $50,000 per accident, and notes that under 215 ILCS 5/143a-2 underinsured motorist coverage is required if you buy higher uninsured motorist limits ⁴. It also warns that state minimums may not be enough to fully protect you from a lawsuit ⁴.

Our guides to the price gap between minimum and full coverage and to uninsured motorist coverage explain those choices in more detail.

A company-wide decrease is an average. A renewal can rise because a young driver was added, a ticket or claim was recorded, a discount ended, the vehicle changed or coverage changed, and credit-based pricing can move a premium too ⁴. Our page on whether car insurance rates are going down explains why averages and individual bills often differ, and our guide to reading a renewal notice shows where the reasons usually appear.

IDOI's Consumer Assistance line is (866) 445-5364, where analysts answer general questions; complaints must be submitted in writing, through the department's online help center, by email to [email protected] or by mail ⁵. IDOI says it can investigate complaints about insurance companies and producers, but it cannot act as your lawyer, recommend an insurer or decide who was at fault in an accident ⁵.

For a question about a specific claim, start with your insurer and then IDOI; we do not give claims advice. To see how several insurers would price the same driver and car, you can compare quotes. QuotePitStop is a lead-generation service, not an insurance company, agent or broker.

Sponsored link. QuotePitStop is a lead-generation service and is paid by insurance partners when you request quotes.

• ¹ Official record: Public Act 104-0753, the new auto rate article, the July 1, 2027 applicability, the 40-day and 30-day periods, rebates, the cost-shifting rule, the 10% renewal notice rule and the over-55 course changes, checked October 13, 2026.
• ² Official record: the SB 714 bill status page, Governor approval on August 4, 2026 and the July 1, 2027 effective date, checked October 13, 2026.
• ³ Reported: Capitol News Illinois, republished by NPR Illinois on August 4, 2026, on Illinois and Wyoming and the summary of the new review power, checked October 13, 2026.
• ⁴ Official record: IDOI's Auto Insurance Shopping Guide, rating factors, the $25,000, $50,000 and $20,000 liability minimums and the uninsured motorist minimums, checked October 13, 2026.
• ⁵ Official record: IDOI's complaint process page and the (866) 445-5364 Consumer Assistance line, checked October 13, 2026.
• ⁶ Reported: State Farm's own Illinois newsroom page, the 15 percent combined, 5.7% and 9.6% auto rate decreases and its position on the bill, checked October 13, 2026.