Indiana Car Insurance Laws

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Breaking Down Auto Insurance

Paying a monthly premium may seem like a hassle, but if an accident happens, it could save you from financial upheaval. Auto insurance truly is a financial safety net, which should be a comfort to you as you drive.

Still, if you don’t know how insurance works or how it can work for you, you can be at a disadvantage. And there are many negatives that come with choosing not to purchase auto insurance.

Here at WKW, we can explain Indiana’s auto insurance laws to help you better understand what is mandatory and what to do if you are uninsured.

Fault-Based Insurance System

No-fault or fault-based insurance systems are in place in most states.

No-fault insurance: All drivers who are involved in an accident—no matter who might be at fault—use their own insurance policy to cover the damages.

Fault-based insurance: The person who caused the car accident is responsible for paying damages.

Indiana follows the fault-based system. This means you can do the following when another driver causes an accident:

  • File a third party insurance claim with the at-fault driver’s insurance
  • File a claim through your own insurance company
  • File a personal injury lawsuit

Auto Insurance Minimums in Indiana

In the state of Indiana, all drivers are required to have the minimum amount of liability insurance coverage.

  • The death of one person should include a $25,000 minimum.
  • The death of two or more people should include a $50,000 minimum.
  • Destruction of property should include a $25,000 minimum.

Your insurance agent will likely call this 25/50/25 coverage. Your liability insurance will cover injuries and property damage for the other driver if you were at fault. Again, these numbers are just a minimum. You can cover much more.

Uninsured Drivers in Indiana

Your license could be suspended for a year and you could be required to pay a large sum if you are caught driving without auto insurance in the state of Indiana. The larger issue is that you may be deemed personally responsible for all damage you cause without insurance. This means an injured driver can sue you, going after your home and all of your assets.

What If You Were Hit By an Uninsured Driver?

Even though it is the law, not everyone has liability insurance. In this scenario, you would be covered by your own insurance.

Uninsured motorist (UM) coverage covers bodily injury and property damage at the previously discussed 25/50/25 level.

Underinsured motorist (UIM) coverage provides coverage for bodily injury at $50,000.

Indiana Insurance FAQs

Here are a few common questions people often ask the attorneys at WKW about auto insurance.

What Are Auto Insurance Costs?

The Indiana Department of Insurance allows insurance companies to set prices that are “fair, adequate, and not excessive or unfairly discriminatory.”

Factors for setting auto insurance rates include:

  • Age
  • Gender
  • Marital status
  • Place of residence
  • Type of car
  • Driver history
  • Claims history
  • Policy limits
  • Deductible
  • Credit score
  • Car use

What If No One Will Sell Me Auto Insurance?

You may have been turned down by insurance companies if you have a lengthy history of accidents. The state of Indiana can help you apply through the Indiana Auto Insurance Plan.

Can the Police Ask About My Insurance Info?

Yes, the Bureau of Motor Vehicles requires all motorists to display their issuance of minimum liability insurance overage if they are involved in:

  • A car accident
  • A moving violation
  • A traffic violation
  • A violation by someone who has already failed to prove insurance

Why Could an Insurance Company Cancel My Policy?

In order to cancel an insurance policy, the Indiana Department of Insurance requires an insurance company to meet the following guidelines:

  • Cancellation must occur within 60 days of a new policy being released.
  • After 60 days, the cancellation can only happen if payment ceases to occur.
  • At the end of your policy, an insurance company can refuse to renew with 20 days notice.

The Indiana Car Accident Statute of Limitations

A statute of limitations is a set of laws outlining how long a person has to pursue a case against an at-fault party. These deadlines vary based upon the type of injury you face, but in many states, they are up to two years.

This law does not apply to car insurance claims. Insurance companies require you to make a claim in a prompt manner in order to receive compensation.

The state of Indiana applies the statute of limitations to car accident injuries as well as personal injury cases where negligence was involved. Indiana Code section 34-11-2-4 gives the injured party two years to remedy a case in court. This is true whether you are a driver, passenger, motorcyclist, cyclist, scooter rider, or pedestrian.

If someone died as a result of an accident, wrongful death claims also have a two-year deadline. This deadline is determined by the date of the victim’s death, not the date of the accident.

If the statute of limitations deadline has passed, an Indiana court will almost always deny your claim. This is why it is important to meet all deadlines.

Even if you think you can easily win your case, you should always give yourself plenty of time to file a lawsuit. The best course of action is to hire an experienced attorney like the ones at WKW to ensure you never miss any deadlines. We can help make sure everything is filed as smoothly as possible.

Contact an Automobile Accident Attorney Today

If you or a loved one have been injured in a car accident, contact the Indianapolis car accident attorneys of Wilson Kehoe Winingham. We can help you and your family fight for the compensation you deserve. Call 317.920.6400 or fill out our online contact form for a free, no-obligation case evaluation.

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Let WKW put our experience to work for you. Contact us for your free case evaluation.


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