Here's something that might surprise you: even though Illinois requires all drivers to carry auto insurance, about one in eight drivers on the road has absolutely no coverage. That means when you're driving to work, dropping the kids off at school, or running errands around Chicago or Springfield, there's a real chance you'll encounter an uninsured driver. And if that driver causes an accident, you could be stuck with thousands of dollars in medical bills and vehicle repairs—unless you have uninsured motorist coverage.
The good news? Illinois law requires insurance companies to include uninsured motorist protection in every auto policy they sell. The catch? You can waive it if you want to save money. But before you sign that rejection form, let's talk about what you'd be giving up and why most drivers in Illinois choose to keep this coverage.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage steps in when you're injured in an accident caused by a driver who has no insurance—or in hit-and-run situations where the other driver can't be identified. Think of it as insurance for your insurance. It covers your medical expenses, lost wages, pain and suffering, and other damages that the at-fault driver's insurance would normally pay for, if they had any.
In Illinois, uninsured motorist coverage actually comes in three flavors. Uninsured Motorist Bodily Injury (UM) is the mandatory one—it covers injuries to you and your passengers. Underinsured Motorist Bodily Injury (UIM) kicks in when the other driver has some insurance, but not enough to cover your damages. And Uninsured Motorist Property Damage (UMPD) is optional coverage that helps repair your vehicle when an uninsured driver damages it.
Illinois UM Requirements: What the Law Says
Under Illinois law (specifically 215 ILCS 5/143a), every auto insurance policy must include uninsured motorist bodily injury coverage with minimum limits of $25,000 per person and $50,000 per accident. These limits match the state's minimum liability requirements, which makes sense—your UM coverage should protect you at least as much as other drivers are required to protect you.
But here's where it gets interesting. You can reject this coverage or choose lower limits, but only if you do it in writing. Your insurance company must offer you UM coverage, and they need your signature on a rejection form to exclude it. This requirement exists because lawmakers know that many people would skip this coverage to save a few dollars, not realizing they're taking on enormous financial risk.
If you purchase UM coverage above the state minimum, Illinois also requires you to carry underinsured motorist coverage at the same limits. This pairing makes sense—if you think $25,000 isn't enough protection against uninsured drivers, it's probably not enough protection against drivers with minimal coverage either.
Why This Coverage Matters More Than You Think
Let's be real about the numbers. Research shows that approximately 12-13% of Illinois drivers are uninsured. That's roughly 1.3 million people driving around without coverage. In Cook County alone, you're sharing the road with hundreds of thousands of uninsured drivers every day. The odds of eventually crossing paths with one aren't just possible—they're probable.
Now imagine this scenario: you're rear-ended at a stoplight on the Eisenhower Expressway. Your back hurts, you need physical therapy, you miss two weeks of work, and your car needs $4,000 in repairs. The other driver apologizes profusely but admits they have no insurance. Without UM coverage, you're looking at paying for all of that yourself—or pursuing a lawsuit against someone who likely doesn't have assets to collect from anyway.
The state minimum of $25,000 per person might sound adequate until you consider what medical care actually costs. An ambulance ride can run $1,000-$2,000. An emergency room visit easily tops $5,000. If you need surgery, require ongoing treatment, or suffer serious injuries, you could blow through that $25,000 limit before you're halfway through recovery. That's why many Illinois drivers opt for higher UM limits—$100,000 per person or more—to ensure they're truly protected.
Your Coverage Options and What They Cost
When you're setting up your Illinois auto policy, you'll need to make several decisions about UM coverage. First, there's the basic bodily injury coverage that's required by law. You can stick with the minimum $25,000/$50,000 limits, increase them to match higher liability limits, or—against the strong advice of most insurance experts—reject the coverage entirely by signing a written waiver.
Then there's uninsured motorist property damage coverage, which is optional in Illinois. This coverage typically comes with a deductible of up to $250 and covers repairs to your vehicle when an identified uninsured driver is at fault. The key word there is "identified"—hit-and-run situations where you can't identify the other driver usually aren't covered under UMPD. For those scenarios, collision coverage on your own policy would step in.
The cost for UM coverage is surprisingly reasonable, especially considering the protection it provides. Because your insurance company isn't covering the at-fault driver—just stepping in when that driver can't pay—the premiums are typically much lower than liability coverage. Many Illinois drivers find that bumping their UM coverage from the minimum to $100,000/$300,000 adds only $50-$100 to their annual premium.
Understanding Underinsured Motorist Coverage
Underinsured motorist coverage deserves its own explanation because it's equally important but often misunderstood. UIM coverage applies when the at-fault driver has insurance, but their limits are too low to fully compensate you for your injuries. Under Illinois law (215 ILCS 5/143a-2), if you purchase UM coverage above the state minimum, you must also carry UIM coverage.
Here's how it works in practice. Say you're injured in an accident and your damages total $75,000. The at-fault driver has the state minimum $25,000 in liability coverage. Your UIM coverage would pay the difference between what their insurance pays and your actual damages—up to your UIM policy limits. If you have $100,000 in UIM coverage, you'd receive $25,000 from the other driver's insurer and up to $50,000 more from your own UIM coverage to bridge the gap.
How to Make Smart Decisions About UM Coverage
When you're shopping for auto insurance in Illinois, don't just focus on finding the cheapest premium. Take a hard look at your UM and UIM coverage limits. A good rule of thumb is to match your UM/UIM coverage to your liability limits. If you're carrying $100,000/$300,000 in liability coverage because you want to protect your assets if you cause an accident, you should want that same level of protection when someone else causes one.
Consider your personal situation too. Do you have good health insurance that would cover medical bills from a car accident? Do you have disability insurance to replace lost wages? If the answer to both questions is yes, you might be comfortable with the minimum UM limits. But if you'd be financially devastated by unexpected medical bills and lost income, higher UM limits are a smart investment.
Before you sign any rejection waiver, talk to your insurance agent about the cost difference. Many people assume that declining UM coverage will save them a lot of money, only to discover it would have added just $10 or $20 to their monthly premium. That's a small price to pay for protection against a potentially catastrophic financial loss. Remember, if you do reject coverage or choose minimal limits, that decision stays in effect when your policy renews—your insurer isn't required to offer you the coverage again unless you request it in writing.
The bottom line is this: uninsured motorist coverage exists to protect you from the financial consequences of other people's irresponsibility. With more than one in ten Illinois drivers on the road without insurance, this isn't a theoretical risk—it's a real exposure that every driver faces. Whether you're commuting through Chicago, driving the rural highways of southern Illinois, or anywhere in between, having solid UM and UIM coverage means you can focus on recovering from an accident instead of worrying about how you'll pay for it.
