Updated June 2026
What Is Uninsured Motorist Coverage Insurance?
Uninsured Motorist Coverage steps in when the at-fault driver has no liability insurance or can't be identified after a hit-and-run. It pays your medical expenses, lost income, and in some states your vehicle damage. The coverage applies per person and per accident, just like liability limits, so a policy with $50,000/$100,000 UM coverage pays up to $50,000 for one injured person or $100,000 total if multiple people in your car are hurt. Illinois law requires every carrier to offer this coverage when you buy liability, but you can refuse it by signing a rejection form.
- You're rear-ended at a stoplight by a driver who admits he let his insurance lapse three months ago. You have $8,200 in medical bills and miss two weeks of work worth $1,400 in lost wages. The at-fault driver has no liability coverage to pay your claim. Your Uninsured Motorist Coverage pays the full $9,600 because it falls under your per-person limit.
- A car merges into your lane on I-90, forces you off the road, and drives away. You never see the plate. You suffer a broken collarbone, $14,500 in hospital bills, and $3,200 in lost income during recovery. You report the accident to Illinois State Police within two hours. Your UM coverage treats this as an uninsured motorist claim and pays the full $17,700 because the driver can't be identified.
- You're hit by a driver carrying Illinois minimum liability of $25,000 per person. Your injuries total $42,000. The at-fault driver's liability pays the $25,000 limit, leaving $17,000 unpaid. If you carry Underinsured Motorist Coverage at $50,000 per person, it pays the remaining $17,000. Standard Uninsured Motorist Coverage does not cover this gap — you need the underinsured endorsement, which Illinois carriers offer separately.
Who Needs Uninsured Motorist Coverage Insurance?
If you're reinstating your Illinois license after a suspension and the DMV requires you to carry liability insurance or file an SR-22, strongly consider keeping Uninsured Motorist Coverage. Suspended drivers often drive older vehicles and carry minimum liability limits, which means a hit-and-run or collision with an uninsured driver could leave you with thousands in medical bills and no way to recover the cost. Refusing UM coverage saves $10–$15 per month but exposes you to the full financial risk if the other driver has no insurance.
Compare your health insurance out-of-pocket maximum to the cost of UM coverage. If your health plan has a $6,000 deductible and you carry $25,000/$50,000 UM limits for $12 per month, the UM policy closes a real gap. If your health coverage is strong and you have income protection, the savings from refusing UM may outweigh the risk — but only if you're willing to sign the waiver and accept that you can't recover from your own carrier if an uninsured driver injures you.
How Much Does Uninsured Motorist Coverage Insurance Cost?
Uninsured Motorist Coverage typically adds $8–$18 per month to an Illinois auto policy, or $96–$216 per year.
- Your UM coverage limits — choosing $100,000/$300,000 costs more than $25,000/$50,000, but the price difference is smaller than most people expect because uninsured motorist claims are statistically less frequent than collision or comprehensive claims.
- Your ZIP code's uninsured driver rate — counties with higher percentages of uninsured motorists see slightly higher UM premiums because the statistical likelihood of needing the coverage increases.
- Whether you add Underinsured Motorist Coverage at the same time — most carriers bundle UM and UIM together, adding $4–$9 per month on top of the base UM cost.
- Your liability limits — carriers often require your UM limits to match or stay below your liability limits, so if you carry $100,000/$300,000 liability, you can select up to $100,000/$300,000 UM but not higher.