Uninsured & Underinsured Insurance Coverage in Indiana

 Having an automobile accident in Indiana can become a significant financial burden for an injured person. This burden can be compounded when the at-fault party does not have insurance or does not have an insurance policy sufficient to cover damages. Under Indiana law all drivers are required to have what is known as 25/50/10 coverage, meaning a minimum coverage of $25,000 for each person for bodily injury, minimum liability limit of $50,000 for each accident, and a minimum of $10,000 in coverage for property damage. However, despite these laws, there are still cars on the road who are either uninsured or under insured. Therefore, in order to promote opportunity for innocent individuals to recover for damages in the event of an accident with another driver who is not properly insured, Indiana requires that auto insurance providers to provide their customers uninsured and under insured motorist coverage, for either a single premium or for separate premiums, in limits at least equal to the limits of liability specified in the bodily injury liability provisions of an insured's policy. If the insured chooses not to purchase this coverage, the law requires that he must explicitly reject or waive the coverage in writing. https://askcompetentlawyer.com/ The court has previously interpreted the UM/UIM statute to require an offer, not merely the accessibility to coverage. The law also specifies that for under insured motorist coverage, the coverage must be made available in limits not less than $50,000 and providers may not sell or provide any under insured motorist coverage less than that. Furthermore, at the insured's option, the bodily injury liability limit may be required to be equal to the under insured motorist coverage. Any policies issued after 1995 may offer uninsured or under insured motorist coverage in an amount greater than the limits of liability in the bodily injury and property damage liability provisions of an insurers' policy.

There is a significant difference between an uninsured and under insured vehicle. An uninsured motor vehicle means a motor vehicle without liability insurance or one that doesn't have the required 25/50/10 coverage or any similar requirements applicable under the law of another state. However, an uninsured motor vehicle can also be an insured motor vehicle where the liability insurer of the vehicle is unable to make payments within the 25/50/10 limits because of insolvency of the insurance company within two years of the accident. In a hit-and-run case the driver would be considered an "uninsured" motorist as well. On the other hand, an under insured motor vehicle is an insured motor vehicle where the limits of coverage available for payment to the insured under all bodily injury liability policies, covering persons liable to the insured, are less than the limits for the insured's under insured motorist coverage at the time of the accident.