Indiana Motor Vehicle Accident Laws

Insurance Requirements

System type: Indiana operates under a fault-based insurance system. This means that the driver found at fault for an accident is responsible for covering damages to other parties through their liability insurance. Fault determination is a critical aspect of Indiana’s car accident claims process, influencing which insurance policies come into play.

Minimum coverage requirements: Under Indiana law, all drivers are required to maintain liability insurance with the following minimum coverage limits:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage per accident

Uninsured/underinsured motorist (UM/UIM) coverage: Indiana requires insurers to offer uninsured and underinsured motorist coverage in their policies, although drivers have the option to decline this coverage in writing. UM/UIM coverage protects against drivers who lack insurance or have insufficient insurance to cover damages. While not mandatory, this coverage is strongly recommended to ensure financial protection in such scenarios.

Penalties for non-compliance: Driving without insurance in Indiana carries serious consequences, including fines and fees ranging from $250 to $1,000, depending on the offense. Drivers could also face suspension of driving privileges until proof of insurance is provided, as well as the mandatory filing of an SR-22 form for three years, which serves as proof of financial responsibility. Repeat offenses can lead to steeper penalties, including longer suspension periods and higher reinstatement fees.

Rideshare drivers: Rideshare drivers in Indiana, such as those working for Uber or Lyft, must adhere to specific insurance requirements based on their app usage:

• Logged into the app, but no ride was accepted:
  • $50,000 bodily injury per person
  • $100,000 bodily injury per accident
  • $25,000 property damage per accident
• Ride accepted or passenger on board: Rideshare companies provide $1 million per accident in liability coverage, $1 million in UM/UIM coverage, and comprehensive and collision coverage with deductibles up to $2,500

Rideshare drivers should ensure that their personal auto insurance policies do not exclude coverage during rideshare activities, as this could result in significant coverage gaps.

Optional coverages: The limits of liability coverage are designed to provide basic financial protection for victims of car accidents, but they may not fully cover significant damages in more serious accidents. Therefore, Indiana drivers can enhance their financial protection by opting for additional coverages, such as:

• Collision coverage: Pays for vehicle damage regardless of fault
• Comprehensive coverage: Covers non-collision-related damages, including theft, vandalism, and weather-related incidents
• Medical Payments (MedPay): Covers medical expenses for the policyholder and passengers, regardless of fault
• Gap insurance: Covers the difference between a vehicle’s loan or lease balance and its actual cash value if totaled
• Rental reimbursement: Covers the difference between a vehicle’s loan or lease balance and its actual cash value if totaled

Fault Laws

Modified comparative negligence in Indiana

Indiana adheres to a modified comparative fault system, also known as the “51% bar rule.” Under this system, injured parties can recover damages as long as they are 50% or less at fault for the accident. However, their compensation is reduced proportionally by their degree of fault. For example, if a claimant is 20% at fault in an accident with $10,000 in damages, they can recover $8,000. However, if they are 51% or more at fault, they are barred from recovering any damages. This rule ensures that claimants cannot receive compensation if their responsibility for the accident outweighs that of the other parties involved.

Multi-vehicle collisions

In multi-vehicle accidents, fault is allocated among all involved parties based on evidence and testimony. Each party’s ability to recover damages is reduced by their percentage of fault. Proper documentation, eyewitness accounts, and expert accident reconstruction are critical in establishing fault and ensuring fair compensation.

Special considerations for passengers

Passengers injured in a car accident may file claims against any at-fault party, whether the driver of their vehicle or another involved driver. However, if the passenger’s own actions—such as failing to wear a seatbelt—contributed to their injuries, their compensation may be reduced in accordance with Indiana’s modified comparative fault rules.

Statute of Limitations

Personal injury claims: Indiana law allows injured parties two years from the date of the accident to file a personal injury lawsuit. This includes claims for medical expenses, lost wages, and pain and suffering. Filing after this period typically results in the dismissal of the claim.

Property damage claims: Claims for property damage, such as vehicle repairs or the replacement of personal items damaged in the accident, also have a two-year statute of limitations starting from the accident date.

Wrongful death claims: In the event of a fatal car accident, family members or representatives have two years from the date of death to file a wrongful death lawsuit. This timeline differs from personal injury claims, as it begins on the date of death rather than the accident itself.

Exceptions to the statute of limitations:

• Minors: If the injured party is under 18, the statute of limitations is paused until their 18th birthday, after which the standard two-year filing period begins
• Government claims: Claims involving government entities, such as accidents with government vehicles, require filing a Notice of Tort Claim within 180 days for local entities or 270 days for state agencies
• Delayed discovery: If injuries or damages are not immediately apparent, the two-year period may begin from the date the harm is discovered or reasonably should have been discovered

Accident Reporting Requirements

When to report an accident

Indiana law requires drivers to report a car accident to law enforcement if any of the following conditions are met:

• Injury or death: If anyone involved in the crash suffers bodily injury or dies
• Property damage: If the total property damage exceeds $1,000
• Unattended vehicle or property: If the accident involves an unattended vehicle or other property, and the owner cannot be located

Accidents must be reported immediately using the quickest available means, such as calling 911. If the accident occurs within a municipality, contact the local police department. Outside of a city’s limits, on the other hand, you would notify the county sheriff’s office or the nearest Indiana State Police post.

Failing to report a qualifying accident can result in legal penalties, including fines, license suspension, and, in severe cases, criminal charges.

Filing accident reports

If law enforcement responds to the scene, they will file an official crash report. However, in some cases, it becomes the driver’s responsibility to file a report:

• Operator’s Proof of Insurance/Crash Report: Indiana law requires motorists to file this form with the Bureau of Motor Vehicles (BMV) within 10 days of a reportable accident. This form verifies that drivers had valid insurance coverage at the time of the accident and must be signed by their insurer.

Steps for filing:

1. Obtain the Operator’s Proof of Insurance/Crash Report form from the Indiana BMV website
2. Complete the form with details of the accident, including the date, time, location, and involved parties
3. Submit the signed form to the BMV electronically or by mail. Failure to file the required report can result in suspension of your driver’s license and vehicle registration

How to access accident reports

Crash reports can be obtained for insurance claims or legal proceedings. In Indiana, you can access these reports through the following methods:

Online: Visit the Indiana State Police’s BuyCrash platform to request and purchase an electronic copy of your crash report.

In-person: Contact the law enforcement agency that responded to the accident to request a copy.

By mail: Submit a written request to the investigating agency, including the report number (if known), the accident date, and the names of involved parties.

Reports are typically available within 3-10 business days after the accident.

Additional considerations

Private property accidents: Accidents occurring on private property, such as parking lots, may not always require a police report but should still be documented for insurance purposes.

Deer collisions: Indiana’s high number of deer-related crashes makes police documentation important for insurance claims.

Moving vehicles post-accident: If no severe injuries occur, Indiana drivers are encouraged to move vehicles to a safe location to prevent further accidents.

Compensation Limits

Economic damages: Indiana does not cap economic damages, allowing car accident victims to recover the full extent of their measurable financial losses. These damages typically include medical expenses, lost income, loss of earning capacity, property damage, and other out-of-pocket costs directly related to the accident.

Non-economic damages: Indiana imposes no general cap on non-economic damages, which address losses that are harder to quantify, such as pain and suffering, loss of companionship or consortium, reduced quality of life, and so on. However, non-economic damages may be subject to specific limits in cases involving government entities or certain legal contexts.

Punitive damages: Punitive damages, intended to penalize defendants for egregious misconduct, are capped in Indiana. The limit is the greater of $50,000, or three times the amount of compensatory damages (economic and non-economic). 

Claims against the government: When filing a claim against the State of Indiana, its agencies, or local governments, the compensation is capped at $700,000 per individual per incident and $5,000,000 total per accident, regardless of the number of claimants. Punitive damages are not recoverable in claims against government entities or employees acting within the scope of their duties. Additionally, claims must follow strict deadlines, with notices required within 180 days for local entities and 270 days for state entities.

Medical Coverage Considerations

Navigating medical coverage after a car accident in Indiana is essential for managing expenses and ensuring access to timely treatment. Understanding the available insurance options, legal frameworks, and financial tools can alleviate the burden of medical costs during recovery.

Liability insurance: Indiana follows an at-fault insurance system, meaning the at-fault driver’s liability insurance typically covers medical expenses and damages. Drivers must carry minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injuries, and $25,000 for property damage. Liability insurance reimburses victims only after fault is established and claims are resolved. This process can delay compensation, leaving victims responsible for covering immediate costs.

Medical Payments Coverage (MedPay): MedPay is an optional auto insurance feature available to Indiana drivers, covering medical expenses for the policyholder and passengers, regardless of fault. MedPay may cover emergency medical services, hospitalization, surgical procedures, rehabilitation, and physical therapy. MedPay provides immediate financial support, avoiding delays associated with liability claims. However, reimbursement to the insurer may be required from any settlement received.

Uninsured/underinsured motorist coverage (UM/UIM): Indiana auto insurance policies automatically include UM/UIM coverage unless explicitly waived. This coverage is critical in cases where the at-fault driver has no insurance or insufficient coverage to meet damages. Minimum UM/UIM coverage is the same as that of liability insurance, and ensures victims are not left with the financial burden caused by underinsured or uninsured drivers.

Health insurance: Health insurance can act as a secondary source of coverage, paying for medical expenses not covered by auto insurance. While health insurance helps manage immediate costs, insurers often seek reimbursement (subrogation) from any settlement received. Understanding this process is vital to avoid unexpected financial obligations.

Government assistance programs: Programs such as Medicaid and Medicare can serve as a last resort for covering medical expenses for eligible individuals. These programs require reimbursement from any settlement or judgment obtained, and recipients must often provide proof of expenses to the at-fault driver’s insurer.

Medical Liens and letters of protection: Indiana law permits healthcare providers to file medical liens against settlements or judgments to secure payment for services rendered. Medical liens allow victims without health insurance to receive immediate care without upfront payment. On the other hand, letters of protection, issued by attorneys, promise providers payment from any future settlement or judgment, ensuring access to continued care during the claims process. Both liens and letters of protection must be carefully negotiated to minimize repayment obligations and maximize recovery for the injured party.

Additional considerations:

• Payment plans: Medical providers may offer payment plans to spread out costs for uninsured or underinsured patients
• Subrogation and negotiations: Insurers often seek reimbursement from settlements. Negotiating fair terms can help maximize financial recovery

Unique Local Factors

Weather and road conditions: Indiana’s diverse seasonal weather presents unique challenges to drivers throughout the year.

• Winters: Snow, ice, and reduced visibility are common, especially in northern regions and areas near Lake Michigan. Black ice is a frequent hazard on major highways like I-80 and I-65, making winter driving particularly dangerous
• Spring and summer: Heavy rain, thunderstorms, and flash flooding create slippery roads and increase accident risks, particularly on rural roads and low-lying areas
• Autumn: Wet leaves on roads can reduce traction, and foggy mornings often impair visibility. Deer are most active during the fall mating season, increasing the likelihood of wildlife collisions

To mitigate these risks, Indiana drivers should ensure vehicles are equipped with winter tires, maintain proper tire pressure, and remain vigilant during seasonal changes.

Traffic hazards and wildlife: Cities like Indianapolis and Fort Wayne experience heavy traffic during peak hours, particularly on major highways like I-465 and I-69. Construction delays are common in urban areas, especially during summer months. 

By contrast, Indiana’s extensive network of rural roads often sees deer crossings, especially at dawn and dusk. Wildlife collisions are a significant concern, as Indiana ranks high in deer-related accidents. In agricultural areas, slow-moving farm vehicles often share the road, requiring drivers to exercise extra caution and patience. Therefore, drivers in Indiana should be particularly cautious near wildlife crossing signs and be prepared to adjust to slow-moving or stationary vehicles in farming regions.

Tourism and events: Indiana hosts numerous events and attractions that draw heavy traffic, particularly on weekends and holidays.

• Indianapolis 500: The Indy 500 brings thousands of visitors annually, leading to increased congestion on I-70 and local roads around the Indianapolis Motor Speedway
• State parks: Attractions like Brown County State Park and Indiana Dunes National Park see heightened traffic during peak seasons, often with unfamiliar drivers on local roads
• Festivals: Events like the Covered Bridge Festival and the Indiana State Fair bring significant crowds, increasing accident risks in small towns and surrounding areas

Drivers should plan routes carefully during popular events and allow extra time to account for traffic delays.

Local Resources & Contacts

State agencies:

• Indiana Department of Transportation (INDOT): Provides road condition updates, traffic reports, and construction alerts 
  • Website: www.in.gov/dot
  • Phone: (855) 463-6848
• Indiana Bureau of Motor Vehicles (BMV): Offers resources for accident reporting and insurance compliance
  • Website: www.in.gov/bmv    
  • Phone: (888) 692-6841

Indiana State Police (ISP): Maintains crash reports and provides public safety guidance.

• Website: www.in.gov/isp    
• Phone: (317) 232-8248

Legal assistance: Consulting an Indiana personal injury attorney is strongly recommended for navigating accident claims. Experienced attorneys can help establish liability and seek compensation for medical expenses, property damage, and other losses. They can also ensure compliance with critical deadlines like the statute of limitations. Many Indiana personal injury attorneys offer free consultations to evaluate your case. Be sure to consult a professional to protect your rights and maximize your recovery.