What Is Indiana Uninsured Motorist Coverage?

While exploring all the cities and sights The Hoosier State offers residents and tourists alike, all drivers must ensure their car insurance coverage meets legal requirements and provides the ideal amount of protection. 

The minimum legal requirement for auto insurance in Indiana is liability coverage with $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $25,000 of property damage liability per accident, often expressed on a policy as 25/50/25 liability coverage. Insurers must offer each new policyholder the same 25/50/25 limit of uninsured motorist coverage (UM). However, policyholders can reject this coverage if they sign a waiver upon binding a policy.

While maintaining uninsured/underinsured motorist coverage (UM/UIM) isn’t required in The Hoosier State, it’s strongly encouraged. Let’s take a look at what you stand to gain by carrying UM and how it works on your auto insurance in Indiana.

While maintaining uninsured motorist in Indiana isn’t required, it’s highly recommended. A policy with UM coverage helps cover the policyholder’s expenses should they be in an accident caused by a driver who lacks adequate car insurance coverage. UM may help the policyholder cover medical expenses and the cost of vehicle repairs if it’s damaged in an accident caused by an uninsured driver.

Since Indiana is a tort state, otherwise known as an at-fault state, drivers are legally required to carry liability coverage to help cover the victim’s expenses in an accident caused by the policyholder. If the driver who causes an accident isn’t sufficiently insured, the victim cannot file a claim with the at-fault party’s insurance to receive assistance for their expenses. This is where UM coverage comes in.

Indiana uninsured motorist coverage essentially acts as liability coverage for the policyholder. When a would file a claim with the at-fault driver’s liability coverage but can’t due to insufficient coverage, one will file a claim with their UM coverage instead. How much your insurance will cover will depend on the limit you set. Whenever you file a claim, you’re covered up to your policy limit after you reach your deductible. 

You can always choose to raise your policy limits if your financial status changes after binding a policy with your insurer. However, it’s important to remember that with more coverage comes higher premiums.

If you decide to add UM coverage to your policy, you will see there are two facets to the coverage type: uninsured/underinsured motorist bodily injury coverage (UMBI/UIMBI) and uninsured/underinsured property damage coverage (UMPD/UIMPD)

Let’s take a look at how both UMBI/UIMBI and UMPD/UIMPD work.

UM and UIM coverages are lumped together in the state and offer the same protection up to your specified policy limit. UMBI/UIMBI helps policyholders cover medical expenses caused by injuries they incur in an accident caused by an uninsured or underinsured driver. 

UMBI/UIMBI typically covers medical expenses like:

UMBI/UIMBI may also cover these expenses for your passengers if they don’t have an auto insurance policy of their own.

UMBI/UIMBI acts very similarly to a first-party medical benefit, like medical payments coverage (MedPay), as it works to help the policyholder cover the cost of their medical expenses. If you already have MedPay or another first-party medical benefit, you may not need UMBI/UIMBI. It’s always important to speak to your insurer before adding or dropping coverage on your policy to ensure you’re adequately protected in a wide range of scenarios.

Uninsured motorist property damage in Indiana is somewhat self-explanatory. UMPD/UIMPD helps the policyholder cover any repairs to their vehicle if it’s damaged in an accident caused by an uninsured or underinsured driver. This coverage will kick in once you reach your deductible and help you up to your policy limit. 

UMPD/UIMPD acts almost the same way as collision coverage, as it works to help the policyholder cover the cost of their vehicle repairs. If you already have a full coverage policy with collision coverage, you may not need UMPD/UIMPD. However, be sure to consult your insurer before adding or dropping any coverage from your policy to ensure you’re protected in any scenario.

Indiana Underinsured Motorist Coverage works in the same way as UM, and they’re often lumped together as UM/UIM coverage. If a driver has some coverage on an insurance policy but doesn’t meet the legal minimum amount of coverage, they’re considered uninsured in the eyes of the law. 

Since UIM coverage works the same way as UM coverage and UM coverage works like liability coverage that covers the policyholder, then UIM works like liability coverage that protects the policyholder. How’s that for a math problem? 

Filing a claim with your UIM coverage in Indiana will operate like filing any other claim with your insurer. Once you file a claim and your insurer accepts your claim, you will begin receiving compensation for your medical expenses or vehicle repairs once you reach your deductible. You will only receive assistance up to your specified policy limit.

While there aren’t any legal rules for uninsured motorist coverage in Indiana, it’s a good idea to carry this coverage so you’re comfortably covered on this Midwestern state’s roads. The state’s law requires insurers to offer a base limit of UM coverage when a new policyholder binds a policy, but the coverage isn’t required by law.

Out of all the drivers in Indiana, about 15% lack sufficient car insurance coverage. The national average number of uninsured motorists is just below 13%, so Indiana is on par with, if not slightly above, average. While Indiana has a statistically high number of uninsured motorists, that statistic isn’t the only thing that drives states to enact mandatory UM.

No, there isn’t a statute for uninsured motorist coverage in Indiana. Typically, states enact mandatory UM if there’s a statistically high number of uninsured drivers and a high population. While Indiana’s population of uninsured drivers is high, its overall population is low, and its population density is even lower. The big cities, like Indianapolis and Bloomington, aren’t very densely packed, so the state doesn’t view the issue of uninsured drivers as dire.

In Indiana, drivers aren’t required to carry uninsured motorist coverage. Insurers must offer the coverage, but policyholders may reject it if they choose. Here at Clovered, we recommend having at least the minimum amount of UM/UIM your insurer offers to ensure your protection on The Hoosier State’s roads.

If you’re considering adding UM/UIM coverage to your policy but want to ensure you get the best policy in Indiana with the cheapest premiums in the state, look no further. Start your journey by getting and comparing quotes from the state’s top insurers right here at Clovered. You can use our free quoting tool to get your quotes in minutes. If you prefer to speak to an agent about your quote or have any questions about UM coverage, feel free to call us at 833-255-4117 or email us at [email protected].