Most consumers seek financial assistance from their auto insurance or the other driver’s liability coverage after a car accident to cover vehicle repairs and medical expenses. If another party were to blame for the collision, you would claim their motor liability insurance. When a car accident occurs, the person responsible for causing it is typically responsible for paying for the expenses and damages incurred by others.
Regrettably, a compensation claim could get trickier if the other driver doesn’t have auto insurance.
Typically, in Indiana, insurance coverage provided by another driver will cover the injured party if that driver does not have auto liability insurance. When this happens, Indiana citizens can usually rely on their uninsured and underinsured motorist coverage. Unless the policyholder expressly opts out in writing, Indiana law mandates that UM/UIM coverage be added to all new motor liability policies.
The failure of a vehicle accident victim to submit a UM/UIM claim is not uncommon. Most auto owners’ coverage types are not fully understood before they get auto insurance. UM/UIM insurance might cover damages if the driver at fault for the accident did not have insurance or had inadequate insurance to protect them.
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Liability Coverage Minimums
Driving a car without liability insurance is against the law in Indiana. The bare minimal liability protection need is:
- Death or physical injury of one person would result in a payout of $25,000.
- A $50k award for accidents that result in two or more fatalities or physical injuries;
- A $25,000 cap per incident covers property damage.
Comparison of uninsured versus underinsured motorists.
A driver without auto liability insurance is known as an uninsured motorist. Similarly, unidentified hit-and-run drivers are also covered by uninsured motorist coverage because there is no liability coverage for those types of accidents.
When an injured individual receives the entire amount of the at-fault driver’s liability insurance claim but still owes money for their medical treatment, they can obtain underinsured motorist coverage.
When you are hospitalized following a car accident that was someone else’s fault, an underinsured motorist policy can provide valuable coverage since most people only carry the minimum liability coverage, which is only $25,000 for bodily injury. The RAND Corporation published a report in 2020 stating that Indiana is one of the most expensive states for health care.