AUTO INSURANCE-DISABILITIES

104th Regular Session Introduced by Sara Feigenholtz

The bill requires Illinois auto insurers to accept applications from vehicle title-holders who cannot drive due to disability, as long as a primary driver is designated.

Purpose and intent

SB 3696 proposes a targeted change to the Illinois Insurance Code to ensure that individuals who legally own a motor vehicle but cannot drive due to a disability can still obtain automobile insurance. The bill requires insurers to accept an insurance application from such individuals, provided the applicant designates a primary driver or drivers for the vehicle.

Key provisions

New provision added: Section 143.24e to the Illinois Insurance Code (215 ILCS 5/143.24e new).

Scope of protection: Applies to any insurer licensed to issue an automobile insurance policy.

Eligibility criteria for applicants:

The applicant holds legal title to a motor vehicle.
The applicant is unable to drive or is not permitted to drive due to a disability.
The applicant identifies a primary driver or drivers for the vehicle.

Core requirement: Insurers may not fail or refuse to accept an application for automobile insurance from eligible disabled title-holders who meet the criteria above.

Who is affected

Directly affected: Individuals who own a vehicle but cannot drive due to disability.

Indirect effects: Auto insurers operating in Illinois, who must accept such applications (subject to the eligibility criteria) rather than denying opportunities to insure based solely on the owner's inability to drive.

Procedural and timeline aspects

Effective date and status: As introduced, the bill amends the Illinois Insurance Code by adding new language. It has undergone various committee/assignment actions:

Introduced and assigned to Insurance (Feb 2026)
Postponed in Committee (Feb 2026)
Re-referred and further committee-related steps in 2026, with rule-based deadlines (e.g., March-April 2026 cycle)

Sponsorship: Primary sponsor Sen. Sara Feigenholtz; co-sponsor also Sen. Sara Feigenholtz (indicating active sponsorship).

Practical impact and considerations

Access to coverage: Removes a potential barrier for disabled vehicle title-holders, improving access to auto insurance even if they cannot operate the vehicle.

Operational implications for insurers: Insurers must accept such applications and evaluate them consistent with existing underwriting standards for primary drivers, ensuring the process is not blocked solely by the applicant’s inability to drive.

Discretion preserved via primary driver designation: Applicants must identify a primary driver or drivers, which helps define risk and usage patterns for underwriting.

Notes for readers

The bill text specifies a narrowly tailored protection focused on application acceptance, not on premium pricing, policy terms, or coverage changes beyond allowing the application to be filed.

If enacted, the policy would be effective for insurers licensed to issue auto insurance in Illinois and would align practice with the statutory intent to prevent discrimination based solely on the disability-related lack of driving ability of the vehicle title holder.

Bill