Most people use their auto insurance, or the other driver’s liability insurance, to cover car repairs and medical expenses after a collision. You would claim the other driver’s motor liability insurance if they were at fault for the crash. The party at fault is typically required to cover the expenses and damages incurred by others in an automobile accident.
Unfortunately, a compensation claim may become more complex if the other motorist does not have car insurance. The Insurance Research Council (IRC) reports that over 16% of drivers in Indiana in 2019 were uninsured, despite the state’s mandate that vehicle owners carry liability insurance coverage.
Your auto policy’s UM/UIM coverage may cover compensation for your injuries if another driver is uninsured or underinsured and causes them. Get legal advice!
Minimum Requirements for Liability Insurance
Driving an automobile without having liability insurance is prohibited in Indiana. The bare minimum required for liability coverage is:
- $25,000 for a single person’s death or bodily harm;
- If two or more people die or are physically injured in a single accident; and
- Each accident’s property damage is worth $25,000.
As a general rule, liability insurance is often referred to as 25/50/25. The law in Indiana says that drivers convicted of driving without auto insurance will have their licenses suspended and have to pay a fine. With reinstatement costs, licenses can be suspended for 90 days to one year.
Each insurance policy shall contain, in addition to auto liability coverage, uninsured and underinsured motorist coverage, unless the buyer refuses in writing. The minimum UM/UIM coverage matches the Indiana minimum liability coverage requirement: masstamilan
Uninsured Drivers
- $25,000 per person/$50,000 per accident for bodily injury
- Damage to Property: $25,000 per incident
Automobile Underinsured
- Bodily Injury: Each accident and injury is worth $50,000.
Under your own auto insurance policy, you are entitled to compensation if an uninsured or underinsured motorist strikes you.
To Wrap Up
When a driver lacks auto liability insurance, they are considered uninsured. Unidentified hit-and-run drivers are also covered by uninsured motorist insurance because there is no available liability insurance in those cases.
Underinsured motorist insurance coverage becomes available when the injured party has received the total amount allowed under the at-fault driver’s liability insurance but still owes money on medical costs.
Underinsured motorist coverage is beneficial if you get into an accident caused by someone else’s negligence since most people only have liability insurance, which covers up to $25,000.
