Indiana laws require that drivers carry minimum liability insurance, but not everyone follows the law. Liability insurance pays accident victims when a driver causes an accident. Liability insurance does not cover the driver’s damages and losses. Drivers can purchase other types of insurance coverage to help pay losses after a car accident that is their fault, including medical payment, collision, and comprehensive coverage.

What are the Minimum Insurance Requirements in Indiana?

The minimum liability insurance for Indiana drivers is 25/50/25 — $25,000 for bodily injury ($50,000 per accident) and $25,000 for destruction to property. Indiana is a “fault” state for insurance purposes. You must prove the other driver caused the crash to recover compensation for your damages.

In addition to liability insurance, insurance companies are required to include minimum uninsured and underinsured coverage with each new policy written in Indiana. Policies should include $25,000/$50,000 of uninsured motorist insurance and $50,000 of underinsured motorist insurance. However, drivers may decline uninsured and underinsured coverage by rejecting the coverage in writing.

Why You Need Underinsured Motorist Coverage

Everyone needs uninsured and underinsured motorist coverage. As we stated above, not all drivers obey the law by purchasing insurance. Therefore, if an uninsured driver causes a crash, you need uninsured motorist insurance to compensate you for the damages.

However, even if the driver has insurance, the insurance may not cover your damages. Twenty-five thousand dollars sounds like a lot of money. However, if you require surgery, the costs of surgery could easily exceed the other driver’s insurance coverage. If this is the case, you are responsible for all other losses. For example, you are responsible for medical expenses exceeding the other driver’s insurance coverage. In addition, you will not be reimbursed for your lost wages. If you suffer a permanent impairment, there will be no money to compensate you for future damages.

However, if you have underinsured motorist coverage, you can file a claim against your insurance coverage. Your underinsured insurance should cover any damages in excess of the other driver’s policy limits up to your policy limits.

For example, if the total of your injury claim is $75,000 and the other driver has minimum insurance coverage, the maximum amount you can receive from the other driver’s insurance provider is $25,000.  However, if you have underinsured motorist coverage in the amount of $50,000, your insurance provider should pay you the remaining $50,000 to pay your claim in full.

Underinsured motorist coverage is relatively inexpensive when you compare the cost to the protection you receive. Therefore, it is usually in a driver’s best interest to purchase the maximum amount of underinsured motorist coverage his or her budget allows. We encourage you to discuss the options for car insurance with your insurance agent.

Contact an Indianapolis Car Accident Attorney for Help

Visit our contact page to request a free case review by with a member of the Poynter & Bucheri team. You may also call 1-800-265-9881 or (317) 780-8000 to request your free consultation with an Indianapolis personal injury lawyer.

Even if you are dealing with your insurance company, it is still a good idea to consult with an Indianapolis car accident attorney. You want to make sure that you are being treated fairly and that your claim is calculated correctly.