Current Illinois proposals
Illinois has two different paths on the table. One is a direct ban in SB3823. The other is a study-first approach in SB2691, the Nondriving Factors in Insurance Rate-Setting Study Act, introduced in the 104th General Assembly on October 14, 2025, by Sen. Hastings and Meg Loughran Cappel.
SB3823 would add a new article to the Illinois Insurance Code, 215 ILCS 5/Art. XLVIII, called the Insurance Rate Fairness and Consumer Protection article. That proposal is aimed at auto insurance pricing itself. It targets specific nondriving factors and says insurers could not use them in ways that increase premiums, cause nonrenewal, or lead to cancellation.
SB2691 takes a different route. It requires the Illinois Department of Insurance to conduct a comprehensive study of the use of nondriving factors in setting automobile and homeowners insurance premiums in Illinois. In plain terms, that bill does not itself ban those factors. It orders the agency to study them and report back to legislative leaders by a set deadline.
For Illinois drivers, the difference matters. One bill changes pricing rules directly. The other gathers findings and recommendations before any broader statewide restriction takes effect.
What SB3823 would ban
The direct takeaway is simple: SB3823 would prohibit insurers from using your ZIP code, your credit score or credit-based insurance score, or your age if you are over 65 in ways that make your auto insurance more expensive or less secure. The bill would place those limits inside a new article of the Illinois Insurance Code, 215 ILCS 5/Art. XLVIII.
Under the bill, an insurer could not use an insured’s ZIP code to increase premiums. It also could not use a credit score or a credit-based insurance score for that purpose. A credit-based insurance score is a score built from credit information and used in insurance pricing rather than lending. The bill also bars use of age over 65 in ways that increase premiums.
The proposal goes beyond the price on the declarations page. SB3823 would also prohibit insurers from using those same factors to cause nonrenewal or cancellation. Nonrenewal means the company decides not to continue your policy at the end of the current term. Cancellation means ending the policy before the term is over.
That scope is important for older drivers and households in higher-priced ZIP codes. A bill that only addressed premium setting would leave room for a carrier to avoid the risk in another way. SB3823 is written to address all three points: premium increases, nonrenewals, and cancellations.
The bill also creates a review process for rate requests. Under 215 ILCS 5/1801 through 1845, the Department of Insurance would review a rate request within 60 days after submission. That timeline matters because it gives the agency a defined window to examine whether a filing complies with the new fairness rules.
Another enforcement piece is unusually specific. If an insurer submits false or misleading information in a rate request, the bill states that the insurer is subject to an immediate penalty of $100,000 per offense and mandatory audits by the Department for the next 3 years. For consumers, that means the proposal is not only a statement of policy. It also includes a penalty structure tied to rate filings.
One more date matters. The bill text tied to SB0268 states that the section is operative on and after January 1, 2026. If that language remains in the enacted version, the restrictions would not apply before that operative date.
What SB2691 would study
SB2691 does not ban ZIP code pricing or credit-based pricing by itself. Instead, it creates the Nondriving Factors in Insurance Rate-Setting Study Act and directs the Illinois Department of Insurance to conduct a comprehensive study of nondriving factors used in automobile and homeowners insurance premiums in Illinois.
The plain-English point is that lawmakers are considering a record-building step before making broader changes. A study bill gives the Department of Insurance a formal assignment: examine how nondriving factors are being used and then make recommendations to the General Assembly’s top leaders.
That report has a firm deadline. By January 1, 2027, the Department of Insurance must prepare and submit its findings and recommendations to the President of the Senate, the Speaker of the House of Representatives, the Minority Leader of the Senate, and the Minority Leader of the House of Representatives.
The bill also has a sunset. SB2691 states that the Act is repealed on January 1, 2028. In plain terms, the study law would expire after the report period unless lawmakers extend it or replace it with a new law.
For drivers, that means SB2691 is about information and recommendations, not immediate premium relief. If you are trying to predict your next renewal, this bill matters because it can shape later legislation, but it does not itself rewrite your current rating factors.
Review, deadlines, and penalties
The Illinois Department of Insurance sits at the center of both proposals. Under SB3823’s new article in the Illinois Insurance Code, the Department would review rate requests within 60 days after submission. That gives the agency a defined role in checking whether a filing follows the proposed fairness rules.
SB3823 also includes a strong penalty for bad information in a rate filing. If an insurer submits false or misleading information in a rate request, the bill sets an immediate penalty of $100,000 per offense. It also requires mandatory audits by the Department for the next 3 years.
SB2691 gives the Department a different job. Instead of reviewing a specific rate filing under a new ban, it must conduct a comprehensive study of nondriving factors in auto and homeowners insurance pricing. The reporting deadline is January 1, 2027, and the repeal date is January 1, 2028.
Here is the practical split:
| Bill | Main action | Department role | Key date |
|---|---|---|---|
| SB3823 | Direct limits on rating, nonrenewal, and cancellation | Review rate requests within 60 days; enforce filing rules | Operative on and after January 1, 2026 |
| SB2691 | Study nondriving factors | Prepare findings and recommendations report | Report by January 1, 2027; repeal January 1, 2028 |
If you are reading bill text or hearing summaries, this table helps separate immediate regulation from a study mandate. They are related, but they do different things.
Would your premium factors change?
The easiest way to judge your own situation is to compare the bill’s banned factors with the factors you already see in your policy paperwork. Under SB3823, the targeted factors are ZIP code, credit score or credit-based insurance score, and age over 65.
If your insurer currently uses one of those items to raise your premium, the bill would directly affect you. If your insurer relies mainly on other factors not listed in the bill text you have seen, your price might not change from this proposal alone.
Use this checklist when your renewal arrives:
- Check the rating notice. Look for any mention of credit score, credit-based insurance score, territory, garaging address, ZIP code, or age-based tiering.
- Compare old and new declarations pages. If the premium changed, see whether the notice explains why.
- Ask the insurer for the rating factors used. Keep the request in writing by email or portal message.
- Watch for nonrenewal language. If the company is not continuing the policy, read the stated reason carefully.
- Save every notice. Keep renewal offers, cancellation notices, and any explanation of premium changes.
Here is a realistic example. A 68-year-old Chicago driver receives a renewal showing a higher premium. If the increase is tied to age over 65, ZIP code, or a credit-based insurance score, SB3823 would directly address that kind of pricing if enacted and operative. If the increase is tied to a different factor not covered by the bill text, the proposal would not automatically change that result.
That is why your paperwork matters. The bill is factor-specific. It does not say every premium increase is unlawful. It targets named nondriving factors and named insurer actions.
What to watch in Springfield
While these proposals are pending, keep your eye on three things: bill movement, effective dates, and final wording. In Springfield, a bill can change through amendments, committee action, and floor votes before it reaches the Governor.
For SB3823, the key issue is whether the direct prohibitions remain intact in 215 ILCS 5/Art. XLVIII and whether the operative date stays January 1, 2026. For SB2691, the key issue is whether the Department of Insurance study moves forward on the current timeline, with a report due by January 1, 2027 and repeal on January 1, 2028.
You should also watch for any Department of Insurance guidance if either bill advances. Agency guidance can explain how insurers must present rate requests, what information must be disclosed, and how enforcement will work in practice.
If you are dealing with a crash claim at the same time, keep your insurance file organized. Your premium issue and your crash claim are separate matters, but the same policy documents often matter in both. If your situation also involves roadside duties after a collision, see our related guide on Illinois Scott's Law 2026 move-over rule after a crash.
What to watch in renewal paperwork
Your renewal packet is where these proposals become real for you. The Illinois Department of Insurance does not set your household’s premium line by line in the mail you receive, but your insurer’s notices can reveal whether a targeted factor is in play.
Focus on these documents:
- Declarations page: shows the premium and coverage terms for the new policy period.
- Renewal notice: states whether the policy is continuing and on what terms.
- Nonrenewal notice: tells you the company will not continue the policy after the term ends.
- Cancellation notice: tells you the policy is ending before the term expires.
- Rating explanation or adverse action notice: may identify credit-based or territory-based reasons.
If you see a term you do not understand, ask for a plain-language explanation. Use the exact words from the notice in your question. For example: “Was my premium increased because of ZIP code, a credit-based insurance score, or age over 65?” A direct written question makes it easier to compare the answer with the language in SB3823.
Also check dates. If a bill has not taken effect, your current renewal is still governed by current law and your policy terms. If a bill becomes operative on January 1, 2026, a renewal before that date is not the same as a renewal after that date.
Practical next steps
If you want to know whether these proposals matter to your own auto insurance bill, take a few concrete steps now.
- Pull your last two renewal packets. Compare premium changes and any explanation notices side by side.
- Make a written list of factors mentioned. Note any reference to ZIP code, territory, credit score, credit-based insurance score, or age.
- Ask your insurer for clarification in writing. Request the reason for any premium increase, nonrenewal, or cancellation.
- Track SB3823 and SB2691 on the Illinois General Assembly website. Watch for amendments, votes, and effective-date language.
- Save deadlines. If you receive a nonrenewal or cancellation notice, calendar the response date and shopping deadline right away.
- Keep your file organized. Save declarations pages, notices, emails, and screenshots in one folder.
Those steps put you in a better position to spot whether a pending Illinois bill would change your own premium factors or policy status.
Frequently asked questions
SB3823 would prohibit insurers from using a credit score or credit-based insurance score to increase auto premiums or to cause nonrenewal or cancellation.
SB3823 would prohibit insurers from using an insured’s ZIP code in ways that increase premiums, cause nonrenewal, or lead to cancellation.
No. SB2691 requires the Illinois Department of Insurance to study nondriving factors and submit findings and recommendations by January 1, 2027. It does not itself ban those factors.
Under the proposed Insurance Rate Fairness and Consumer Protection article, an insurer that submits false or misleading information in a rate request would face an immediate $100,000 penalty per offense and mandatory audits for the next 3 years.
Sources
Last updated
April 27, 2026
