Illinois has handed auto insurers a new to-do item: tell drivers, in writing, when rental car coverage is on the table.
Public Act 104-0847 adds Section 143.35 to the Illinois Insurance Code. It requires auto insurers to notify customers about the availability of rental vehicle coverage at two points - when a person applies for a policy, and at least 30 days before each renewal. The measure was sponsored by Sen. Laura Murphy, Sen. Suzanne Glowiak Hilton, Sen. Paul Faraci and Sen. Doris Turner, along with Rep. Justin Cochran and Rep. Maurice West.
The notice has to do more than mention the option. In both cases, it must lay out the coverage limits and the cost of rental vehicle coverage for an insured vehicle after a loss covered by the policy contract.
The requirement leans on an existing definition. Both notice duties apply to automobile insurance as defined in paragraph (a) of Section 143.13, so the scope follows the code's current line on what counts as an auto policy.
What the law does not do is just as clear. It does not require insurers to offer rental coverage, and it does not touch pricing. It is a disclosure rule, fixed to the application stage and the renewal stage.
For personal auto carriers in Illinois, the lift is operational. Application forms and renewal packages will need compliant language, and renewal systems will need to send the notice at least 30 days ahead.
The Act takes effect July 1, 2027, giving insurers time to build the disclosures into their forms and renewal cycles before the duty applies.
