Hernandez Passes Homeowner, Auto Insurance Cost Relief Bill

SPRINGFIELD, Ill. — State Rep. Barbara Hernandez, D-Aurora, is taking action to lower home and auto insurance costs by passing a new bill that ensures Illinois customers are not paying to pad the profits of big corporations or cover corporate losses in high-risk states like Florida or Texas.

“Illinois constituents should not be struggling to make ends meet by paying high insurance costs that only benefit big corporations,” said Hernandez. “It is not the responsibility of Illinois’ residents to cover corporate losses, even more so when the money won’t benefit Illinois residents.”

Homeowners across Illinois have seen insurance plans rise by nearly 30% in the last year, raising concerns that Illinois residents are footing the bill for other states at high risk of natural disasters. In an effort to reduce costs for Illinois customers, Hernandez passed Senate Bill 1486, which takes several steps to rein in rising insurance costs by:

• Empowering the Illinois Department of Insurance to reject unfair rate increases by subjecting all Illinois homeowners insurance, fire insurance, and auto insurance policies to a comprehensive rate review process.
• Requiring insurance companies give customers 60 days’ notice before double-digit rate increases, giving customers more time to make informed decisions.
• Shrinking auto insurance premiums for drivers over the age of 55 who complete a 4-hour defensive driving program or e-learning course. 

“By lowering insurance costs for our working families, we are helping them live a more financially stable life,” said Hernandez. “Working families shouldn’t have to choose which monthly utilities they need to cut to be able to pay their high insurance costs. Every family deserves to have affordable insurance protections.”