Illinois working familiars need insurance reform | Opinion

For working people, every dollar matters, especially these days with rising costs and an uncertain economy.

So when auto or homeowner insurance premiums suddenly jump without warning, it can throw an entire household budget into crisis.

For working families, retirees, tradespeople, service workers, public employees and everyone living paycheck to paycheck, these surprise increases force impossible choices: paying the mortgage, filling the gas tank, or keeping legally required car insurance.

That’s why Senate Bill 1486 is such important legislation for working families and organized labor. In March, the Illinois House approved the legislation. The measure is currently under consideration in the Illinois Senate.

SB 1486 brings long-overdue accountability to an industry that has operated for too long without meaningful oversight in Illinois, which is only one of two states that does not require state regulators to review rates set by insurance companies. The bill requires insurance companies to provide 60 days’ notice before raising premiums by more than 10 percent, giving families time to plan instead of being blindsided.

Just as important, it prohibits excessive, inadequate, or unfairly discriminatory rates — helping ensure workers are charged based on real risk – like their driving record. If consumers get overcharged, the measure requires insurance companies to issue a rebate.

SB 1486 also prevents Illinois policyholders from subsidizing disasters in other states, protecting local families from corporate cost-shifting schemes that pad profits at consumers’ expense.

For older Illinoisans, retirees and working seniors, expanding access to defensive driving courses makes discounts easier to obtain and helps keep safe drivers on the road.

Working people have spoken clearly: insurance should be affordable, transparent and fair.

Now the Illinois Senate must stand with labor, retirees and middle-class families by passing SB 1486 and putting working Illinoisans ahead of insurance company profits.

Tim Drea, left, is president of the Illinois AFL-CIO, and Robert Reiter is president of the Chicago Federation of Labor.