SPRINGFIELD — State Senator Michael E. Hastings has introduced Senate Bill 2699, legislation that would require insurance companies to provide advance written notice to consumers before imposing significant rate increases on home or auto insurance policies.
“Consumers deserve to know when a rate increase is coming so they can properly budget for it,” said Hastings (D-Frankfort). “Families should not be blindsided by unexpected hikes that force them to choose between saving for a rainy day or covering an insurance bill.”
Under the proposal, if an insurance company raises a consumer’s premium by more than 10%, the company would be required to give policyholders at least 30 days’ notice for auto insurance and 60 days’ notice for homeowners insurance.
The measure seeks to increase transparency and give consumers time to explore other options if faced with steep cost increases. By mandating clear timelines for advance notice, Hastings said the bill will help protect household budgets from sudden shocks.
“This legislation is about fairness and accountability,” said Hastings. “Insurance is supposed to give families peace of mind, not add unnecessary stress. Requiring timely notice of major increases ensures people have the information and flexibility they need to make the best decision for their families.”
Senate Bill 2699 awaits consideration.
