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Illinois requires written rental coverage disclosures for auto policies
The new law takes effect July 1, 2027, and requires insurers to include rental coverage limits and pricing for insured vehicles after a covered loss at both application and renewal.
Illinois has passed a requirement for auto insurers to provide drivers with written information on rental vehicle coverage, after Public Act 104-0847 added a new disclosure section to the Illinois Insurance Code, according to Insurance Business.
The measure requires insurers to notify customers about the availability of rental vehicle coverage at two points, when someone applies for a policy and at least 30 days before each renewal.
In both notices, insurers must spell out rental coverage limits and the cost of rental vehicle coverage for an insured vehicle after a loss that is covered by the policy contract.
The law is disclosure focused rather than an obligation to offer rental coverage or regulate pricing, and it will take effect July 1, 2027, giving carriers time to update application forms and renewal systems to send the notice on the required timeline.