Indiana Auto Insurance: Understanding The Hoosier State's Unique System

Indiana's auto insurance requirements are crucial to know for drivers in the state. Car insurance is mandatory and drivers need liability coverage limits of at least $25,000 in bodily injury per person, $50,000 in total bodily injury per accident, and $25,000 in property damage per accident. The state follows a traditional fault-based system, meaning the at-fault driver is responsible for covering damages in an accident. Indiana was the ninth least expensive state for auto insurance in 2018, and rates can vary based on factors like driving history and location.

Indiana's minimum insurance requirements

Indiana requires all drivers to have car insurance. The minimum liability insurance requirements in Indiana are:

• $25,000 bodily injury liability per person in an accident
• $50,000 total bodily injury liability per accident
• $10,000 or $25,000 property damage liability per accident

The minimum coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians injured or whose vehicles are damaged in a car accident you cause, up to the coverage limits.

You can carry more coverage to protect yourself in the event of a serious crash that results in significant injuries and vehicle damage. Once policy limits are reached, you are personally financially responsible, so higher insurance limits can help protect your personal assets if you cause a serious crash.

Indiana is a "fault"-based state when it comes to financial responsibility for losses stemming from a car accident. This means that the person who was at fault for causing the car accident is also responsible for any resulting harm. The at-fault driver's insurance carrier will absorb these losses, up to the policy limits.

In Indiana, a person who suffers any injury or damage due to an auto accident can usually proceed in one of three ways:

• By filing a claim with their insurance company, assuming the loss is covered under the policy (in this situation, the injured person's insurance company will likely turn around and pursue a subrogation claim against the at-fault driver's carrier)
• By filing a third-party car insurance claim directly with the at-fault driver's insurance carrier
• By filing a personal injury lawsuit in civil court against the at-fault driver

• Bodily injury: $25,000 per person and $50,000 per accident
• Property damage: $25,000 per accident
• Underinsured motorists: Bodily injury: $50,000

Collision coverage

When deciding whether to get collision coverage, consider the value of your car and whether you would be able to pay for repairs or a new vehicle if it were damaged or totalled. Collision coverage becomes less valuable over time, as it will never pay out more than the car's value.

Comprehensive coverage

When choosing comprehensive coverage, it's essential to consider the value of your car. The cost of comprehensive insurance should be weighed against the value of your vehicle to determine if it's worth the money.

Uninsured/underinsured motorist coverage

Indiana requires drivers to have auto insurance, with liability coverage limits of at least $25,000 in bodily injury per person, $50,000 in total bodily injury per accident, and $25,000 in property damage per accident.

• Uninsured Motorist Bodily Injury (UMBI): This coverage pays for injuries to you and your passengers when involved in an accident with an uninsured driver who is at fault. The limits for UMBI are $25,000 per person and $50,000 per accident.
• Uninsured Motorist Property Damage (UMPD): This coverage pays for damage to your vehicle caused by an accident with an uninsured driver who is at fault. The limit for UMPD is $25,000. It is important to note that UMPD will only pay out if the uninsured driver is identified, and it may not cover hit-and-run incidents.
• Underinsured Motorist Bodily Injury (UIMBI): This coverage pays for injuries to you and your passengers when involved in an accident with a driver who does not have enough insurance to cover the damages.
• Underinsured Motorist Property Damage (UIMPD): This coverage pays for damage to your vehicle when the at-fault driver does not have enough insurance to cover the costs.

While uninsured/underinsured motorist coverage is mandatory in Indiana, you have the option to reject it in writing. However, it is highly recommended for all drivers, as it provides financial protection in case of an accident with an uninsured or underinsured driver. Without this coverage, you could be responsible for paying medical bills or vehicle repair costs out of your own pocket.

How to file a claim

If you've been in a car accident in Indiana, it's important to know how to file an insurance claim. Here's a step-by-step guide to help you through the process:

What to Do Immediately After the Accident:

• Call 911 for paramedics if anyone is injured or requests medical attention.
• If there are no injuries, contact the police to report the crash and have an officer come to the scene to prepare a police accident report. If the police don't attend the scene, you must file a crash report within 10 days.
• Get a copy of the police report, as most insurers will want to see this.
• Exchange driver's license and insurance information with all drivers involved.
• Document the accident scene by taking photos or videos of vehicle damage, injuries, skid marks, traffic controls, and weather or road conditions.
• Seek medical attention as soon as possible, even if you feel okay, as this will help strengthen your claim.

How Long You Have to File a Claim:

Your insurance policy will likely provide a deadline for filing a claim. It's important to notify the other driver's insurer as soon as possible. Waiting too long may result in your claim being denied, as the insurance company may not be able to investigate the accident effectively.

How to File a Car Accident Claim:

• Check if your insurance company has a mobile application that allows you to file a claim at the accident scene.
• Call the insurance company's claims hotline to file a claim over the phone.
• Visit the insurance company's website to find electronic or paper forms that you can print out and mail.

The Next Steps in the Claims Process:

• An insurance adjuster will be assigned to your case and will serve as your point of contact. They will also decide whether to accept or deny your claim.
• You will be given a case number to reference when speaking with the insurer.
• Provide your account of the accident to help the adjuster determine fault.
• An agent or appraiser will likely be sent to evaluate the damage to your car.
• If the other driver is at fault, your insurer will contact them and their insurance company to seek reimbursement for any coverage benefits paid to you.
• After gathering evidence, the adjuster will decide whether to accept or deny your claim. If approved, they will calculate your compensation.

If You Are Partially Responsible for the Accident:

Indiana uses a comparative fault rule. This means that you can still pursue compensation if you are less than 51% to blame for the accident. However, your financial recovery will be reduced based on your percentage of fault.

Deadlines for Filing an Injury Lawsuit:

In Indiana, you generally have two years from the date of the car accident to file a lawsuit against an at-fault driver and their insurer. However, there may be exceptions that can extend or shorten this deadline.

Frequently asked questions