Understanding Insurance Requirements and Coverage After a Car Accident in Indiana
Car accidents happen in an instant, but the aftermath can be complicated, especially when it comes to insurance. If you’ve been in a crash, one of your first concerns is likely how your medical bills, car repairs, and other expenses will be covered. Understanding Indiana’s auto insurance requirements—and the difference between required and optional coverage—can help you protect your rights, make informed decisions, and pursue the compensation you deserve.
At Lee Cossell & Feagley, LLP, our Indianapolis auto accident attorneys have represented countless accident victims in Indianapolis and across Indiana. We know how critical it is to understand the details of your insurance policy and how that policy affects your legal options after a crash. Whether you’re dealing with your own insurance company or the at-fault driver’s insurer, having a clear grasp of coverage rules can make a world of difference in your recovery.
Indiana’s Minimum Auto Insurance Requirements
Indiana law requires all drivers to carry minimum levels of auto liability insurance. These minimums are designed to ensure that drivers can cover the basic costs of damage or injury caused in an accident. Currently, the mandatory minimum coverage limits in Indiana are:
- $25,000 for bodily injury or death to one person in an accident
- $50,000 for bodily injury or death to two or more people in a single accident
- $25,000 for property damage per accident
This coverage is referred to as liability insurance because it pays for damages to other people and their property when you are legally responsible for an accident. It does not cover your own injuries or vehicle damage.
All Indiana auto insurance policies must also include uninsured and underinsured motorist (UM/UIM) coverage, unless the policyholder explicitly rejects it in writing. We’ll explain more about UM/UIM coverage below, but it’s important to note that you may have it, even if you don’t remember asking for it.
What Liability Insurance Covers
Liability insurance is the foundation of Indiana’s auto insurance system. If another driver is at fault for a crash, their liability insurance is responsible for your:
- Medical expenses and rehabilitation
- Funeral costs in the event of a fatal accident
- Lost wages for injured parties
- Pain and suffering damages (within policy limits)
- Repair or replacement costs for damaged vehicles or other property
If you are the injured party, and the at-fault driver has the required insurance, you can file a claim against that driver’s liability policy. However, keep in mind that the at-fault driver’s insurance company is not looking out for your best interests. Their goal is to minimize payouts. That’s why having an attorney on your side can be crucial, especially when the damage exceeds policy limits or liability is disputed.
What Happens When Damages Exceed Coverage Limits?
Indiana’s minimum insurance limits are just that—minimums. In a serious crash, the at-fault driver’s $25,000 bodily injury limit may not even cover a single ER visit and surgery, much less long-term treatment, lost wages, or pain and suffering. When damages exceed available coverage, accident victims have several potential options:
- Suing the at-fault driver personally for the excess amount
- Filing a claim through your underinsured motorist coverage, if available
- Exploring third-party liability claims, such as a negligent employer or vehicle owner
- Uncovering other insurance held by the negligent driver, such as umbrella coverage
The Role of Uninsured and Underinsured Motorist Coverage (UM/UIM)
Even though Indiana law requires auto insurance, not all drivers follow the rules. Some drive without insurance at all, while others carry only the bare minimum, which may be insufficient in a serious accident. UM/UIM coverage is designed to protect you in these situations.
- Uninsured Motorist (UM) coverage applies if the at-fault driver has no insurance or flees the scene (hit-and-run).
- Underinsured Motorist (UIM) coverage applies if the at-fault driver has insurance, but it’s not enough to fully cover your damages.
Indiana law automatically includes UM/UIM coverage in every auto policy unless the policyholder signs a waiver rejecting it. The default UM/UIM minimums match the minimum liability coverage amounts of $25,000 per person for bodily injury and $50,000 per accident for bodily injury involving multiple people.
If you were hit by an uninsured driver or a driver with low coverage, this type of insurance could be your best shot at receiving full compensation.
Collision and Comprehensive Coverage
While Indiana does not require drivers to carry collision or comprehensive coverage, these types of optional coverage can provide significant benefits, particularly if your car is damaged or totaled in an accident.
- Collision coverage pays to repair or replace your car after a crash, regardless of who was at fault.
- Comprehensive coverage pays for non-collision-related damage such as theft, vandalism, fire, hail, or hitting a deer.
If you are financing or leasing your vehicle, your lender will almost certainly require you to carry both types of coverage. If you own your vehicle outright, these coverages are optional, but they can help you recover faster after an accident, especially if the at-fault driver has inadequate insurance.
Medical Payments Coverage (MedPay)
Another optional form of insurance is Medical Payments Coverage, often called MedPay. This coverage helps pay for medical bills incurred by you and your passengers, no matter who caused the accident. Unlike health insurance, MedPay has no deductibles or co-pays and can help with things like:
- Emergency room visits
- Ambulance fees
- X-rays and MRIs
- Surgery and hospital stays
- Funeral costs
MedPay is especially useful for covering immediate out-of-pocket expenses while your liability claim is pending. It’s a relatively inexpensive addition to most policies and can provide real peace of mind.
How Insurance Affects Your Personal Injury Claim
Understanding what insurance coverage is available—and how it works—is key to recovering fair compensation after a car accident. Indiana follows a fault-based system, meaning the person responsible for causing the accident (and their insurance company) must pay for the resulting damages.
If you are found partially at fault, Indiana’s modified comparative fault rule comes into play. You can still recover damages as long as you are less than 51% at fault, but your compensation will be reduced by your percentage of fault. For instance, if your damages total $100,000 and you are found to be 20% at fault, your recovery will be reduced to $80,000. If you are more than 50% at fault, you might not be able to recover any compensation from the other driver.
An experienced attorney can help you avoid unfair blame-shifting tactics from insurers and make sure every possible source of coverage is explored and pursued.
When to Contact an Attorney After an Indiana Car Accident
Dealing with insurance companies after a crash can be a frustrating and confusing process. Insurers may delay your claim, dispute liability, or offer a low settlement that doesn’t begin to cover your losses. If you’ve been seriously injured, you shouldn’t attempt to navigate these obstacles alone.
At Lee Cossell & Feagley, LLP, we help accident victims in Indianapolis maximize their compensation and ensure insurance companies play fair. We can evaluate your policy and the at-fault driver’s policy, uncover all applicable coverage, and fight for the full amount you’re owed, whether through settlement or in court.
Contact Lee Cossell & Feagley, LLP Today
Auto insurance can be a lifeline after a serious accident, but only if you know how to use it. From minimum requirements to optional protections like uninsured motorist coverage, the details of your policy can have a major impact on your financial recovery.
If you or a loved one has been hurt in a car accident in Indianapolis or anywhere in Indiana, contact Lee Cossell & Feagley, LLP, for a free consultation. We’ll review your case, explain your options, and help you understand your rights under Indiana insurance law. Let us help you take control of your recovery, starting with a call to our dedicated legal team.
