spot_imgspot_img

Illinois mandates car insurers detail why vehicle is totaled

(The Center Square) – A new law signed by the governor mandates car insurers in Illinois provide the insured motorist with details surrounding the companies’ decisions to total a vehicle.

House Bill 5559 was signed by Gov. J.B. Pritzker and is now Illinois law. The law mandates car insurance companies explain in detail how they decided a car involved in a wreck was total loss.

Opponents had raised concerns about the burdens on auto insurers and the additive costs to customers, but ultimately the bill was approved unanimously in both chambers.

State Rep. Rep. Tracy Katz Muhl, D-Buffalo Grove, said the bill’s goal was to increase transparency around how car insurers come to a decision to consider a vehicle a total loss.

“So this agreed upon bill is about showing your math. We want to add transparency to help people understand the components of a decision to total your car, typically the current market value, the estimated cost to repair and the salvage value,” said Katz Muhl.

Katz Muhl pointed to a recent Illinois Department of Transportation study that revealed nearly 300,000 car crashes happen in Illinois per year and of those, 75,000 result in at least one car being totaled.

“For that roughly 75,000 families, it’s a financial catastrophe exacerbated by the opacity in the process of understanding how that calculation was made,” she said.

State Sen. Julie Morrison, D-Lake Forest, carried the measure in the Senate and explained that upon the determination of a total loss of an insured vehicle, the insurance company needs to provide the insured with a brief description of how that determination was made.

“This must include any available repair estimate, estimated vehicle salvage value, assessed market value and other costs and calculations used,” said Morrison.

It appears the Illinois Insurance Association initially opposed the measure, but Katz Muhl said she was proud to get the insurers and auto body interest groups on board with the bill.

“We are excited to have worked with all of the consumer advocates, the body shop community and insurance [stakeholders],” said Katz Muhl.

It is not known if the Illinois Insurance Association removed their opposition. The Center Square could not immediately confirm with the association.

The law takes effect Jan. 1, 2025.

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_imgspot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Therapists file lawsuit challenging Louisiana’s speech restriction law

(The Center Square) — Two Baton Rouge based therapists...

Poll: Favorability of Trump, Harris on low end

(The Center Square) – As America heads through the...

Texas sues administration for not verifying voter registration citizenship info

Following Florida, Texas sued the Biden-Harris administration Tuesday after...

Some Wisconsin voters experience delay on first day of in-person voting

(The Center Square) – Several municipalities experienced slow processing...

Florida vote by mail numbers down 65% compared to 2016 election

(The Center Square) – Vote by mail numbers are...

More like this
Related

Therapists file lawsuit challenging Louisiana’s speech restriction law

(The Center Square) — Two Baton Rouge based therapists...

When federal judge will rule on Illinois’ gun ban challenge unclear

(The Center Square) – It’s now up to a...

Poll: Favorability of Trump, Harris on low end

(The Center Square) – As America heads through the...