What You Need To Know About Indiana Auto Insurance Laws

If a negligent driver hits you, you probably have questions about how to proceed with filing a claim and how insurance will affect your claim. Here is the most important information you should know about Indiana's auto insurance laws.

Indiana Is an At-Fault State

Most states are generally divided into two groups when it comes to auto accidents: at-fault states and no-fault states. In at-fault states, the driver whose negligence caused the accident is responsible for damages the victim sustains, such as:

• Property damage
• Medical bills
• Lost wages
• Pain and suffering

In no-fault states, each person's own insurance company covers their own damages regardless of who is at fault for the accident.

Indiana is an at-fault state, so the negligent driver is responsible for the damages you sustain.

Drivers Must Carry Automotive Coverage 

Indiana law requires all drivers to maintain minimum liability insurance that covers damages they cause to other drivers or passengers due to their negligence. Minimum liability insurance is equal to the following amounts:

• $25,000 for bodily injury or death to one person in an accident
• $50,000 for bodily injury or death to more than one person in an accident
• $25,000 in property damage in one accident

However, even though Indiana law requires drivers to carry automotive coverage, this doesn't mean they all do.

You May Be Able to Turn to Your Own Insurance 

The Insurance Information Institute reports that 16.7% of Indiana drivers do not have insurance, the 8th highest percentage of uninsured drivers in the United States.

Indiana law requires that all insurance policies provide for uninsured and underinsured motorist coverage unless you specifically reject this coverage in writing. Uninsured motorist coverage can apply in a few situations: if the at-fault driver did not have any insurance, or if the at-fault driver did not have enough insurance coverage to cover the amount of your damages.

The minimum amounts of uninsured and underinsured motorist coverage are equal to the state minimum liability amounts. You may have also purchased optional coverage to provide additional protection, such as collision insurance, which pays for physical damage to your vehicle.

Indiana Uses a Modified Comparative Fault System

If you and another driver were both responsible for an accident, you may still be able to pursue compensation against the negligent driver, depending on how much of the accident was your fault. This is because Indiana uses a modified comparative fault system.

Under this system, you can pursue compensation against the negligent driver if you were less than 51% at fault for the accident. If you were 51% or more at fault for the accident, you cannot file an injury claim against the other negligent driver.

If you can still pursue compensation against the at-fault driver, your award will be reduced by your own degree of negligence.

For example, if you were driving a few miles over the speed limit and the other driver ran a red light, the other driver may be found to be 90% at fault while you are found 10% at fault. In this scenario, your award would be reduced by 10% since that is the portion of the accident you were responsible for.

This system can be applied if you take your case to trial. The jury is responsible for apportioning fault between all of the at-fault parties. It can also be applied by an insurance company that is handling the claim.

For this reason, it is important that you have the help of a knowledgeable lawyer who can help prove that the other driver was completely or primarily at fault for the accident to ensure you receive the maximum compensation available for your claim.

If you've been injured in an auto accident in Indiana, contact Wegner & Associates for a free consultation.