It’s the law across the United States for drivers to carry some car insurance liability coverage. Minimum coverage varies by state.
What are the automobile insurance laws in Indiana? The personal injury lawyers at Wilson Kehoe Winingham deal with this topic every day. Below is a brief primer on everything you need to know about auto insurance rules in Indiana.
Car Insurance Rates in Indiana
You can easily determine your car insurance rates by shopping at your local Indianapolis car insurance agency to see what’s right for you. The Indiana Department of Insurance is the regulating body that constrains how companies shape their policies.
Keep in mind that car insurance rates may be different for any person. In Indiana, rates will vary depending on a driver’s:
- Driving record
- Place of residence
- Insurance claims and car accident history
- Vehicle model
An insurance company is within its right to cancel your policy within the first 60 days of signing. After that, you can only lose your insurance policy if you fail to pay a premium or if you lose your license. However, you are free to cancel your policy at any time. A company can refuse to renew your policy at the end of your policy period, you must be notified at least 20 days in advance.
Tort Liability in Indiana
Indiana uses a tort liability system of auto insurance, which can also be called “fault insurance.” At minimum, Indiana requires that all drivers hold liability coverage for at least $25,000/$50,000 in bodily injury and $10,000 in property damage.
Under fault insurance—which has been adopted in a majority of states—an insurance company pays damages based upon how at-fault each driver appears for the accident. These policies require you to purchase a certain amount of liability coverage in order to cover damages in the event that you are at fault. Any actual damage to your own vehicle or other property, however, would fall under a separate collision coverage. In fault insurance states, it’s also possible to sue drivers for incurred medical expenses, lost wages, and pain and suffering.
What If the Other Driver is Uninsured?
Indiana requires that liability policies include both uninsured and underinsured motorists’ coverage, unless a policyholder specifically rejects it in writing. Uninsured motorist coverage is designed to protect you in the event of an accident with an uninsured motorist. In this case, your insurance covers damages for the uninsured party. Underinsured motorist coverage is designed for drivers who don’t have sufficient insurance coverage to pay for the damages from the accident. Your coverage would incur the remaining balance.
Car Insurance Policy Coverages in Indiana
Each individual policy will have its own limits and deductibles. Typically, auto insurance policies will cover the following:
- Bodily Injury Liability for when others are injured by your vehicle.
- Property Damage Liability for when property is damaged by the accident.
- Medical Payments to cover medical expenses for yourself and for passengers injured in the accident.
- Collision to cover damages to your car as a result of the accident.
- Comprehensive Coverage to pay for damages caused by something other than an accident, such as theft, fire, or natural disaster.
- Other coverages for towing costs or car rentals also may be available.
What Financial Responsibilities Do I Have in Indiana After an Accident?
In the state of Indiana, drivers who have been in a car accident must be able to demonstrate financial responsibility. You can generally prove that you’re qualified by simply purchasing an Indiana vehicle insurance policy; the insurance company will automatically notify the Indiana Bureau of Motor Vehicles and keep you on positive record given that you make your payments on time.
What if I Don’t Qualify for an Insurance Policy?
If you have been turned down by an insurance agency and can’t find coverage, you may need to apply for the Indiana Auto Insurance Plan as an alternative. Any insurance agent licensed in Indiana can enroll you. The program is designed to cover drivers who have been turned away by insurance companies.
Need Help After a Car Accident?
If you have been affected by a car accident or you have been unfairly turned away by an insurance agency, you may want to protect yourself with an experienced legal team. Both our auto accident attorneys and insurance bad faith attorneys are armed with 30 years of knowledge and experience to fight for you after your accident. Give us a call at 317-920-6400 or fill out the contact form below to schedule your free case review.
REQUEST A FREE CASE EVALUATION