Uninsured motorist coverage protects you if you’re hit by a driver who has no auto insurance. Your insurance company acts “as if” they were insuring the driver with no insurance. This coverages is mandatory in many states (including Illinois) and highly recommended for all drivers. It also provides protection for you and your passengers, if you’re a victim of a hit-and-run accident, you can file a claim against your uninsured motorist coverage for bodily injuries.

For people who only have “Liability Insurance” (where your insurance only pays if you are liable for the accident) certain companies offer uninsured motorist property damage as well. That way, if the person who hits you has no insurance, your insurance policy will pay to get your car fixed. Under most circumstances, regular uninsured motorist insurance ONLY covers bodily injuries. 

Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, protects you if you’re hit by a driver who doesn’t have enough coverage to pay for the damages or injuries they caused. 

Depending on your state, uninsured/underinsured motorist insurance may be separate, combined, or consist of up to four coverages:

If you’re hit by a driver with no insurance…

• Uninsured motorist bodily injury (UMBI) may pay medical bills for both you and your passengers
• Uninsured motorist property damage (UMPD) may pay for damage to your vehicle

If you’re hit by a driver with not enough insurance…

• Underinsured motorist bodily injury (UIMBI) may pay medical bills for both you and your passengers
• Underinsured motorist property damage (UIMPD) may pay for damage to your vehicle

Note that some states may require a deductible for UMPD/UIMPD, but UMBI/UIMBI generally doesn’t include a deductible.

In states where this insurance is optional, many people ask if it is worth the additional premiums? According to MoneyGeek.com, there are over 28 MILLION drivers in the United States without insurance! That means approximately 1 in 8 drivers don’t have any coverage. If you’re involved in an accident with one of them, and you don’t have this type of insurance, YOU could be stuck paying for your car, towing storage (someplace charge $325.00 a day!) and all your medical bills.