After being involved in a car accident, damages are assessed to determine who will pay for repairs. If the accident resulted in injuries, you might seek compensation from the other party. In the United States, the law allows each state to follow its own rules. There are some states that have “no-fault” statutes, while others have fault rules. Indiana is NOT a “no-fault” state. Instead, Indiana follows “at-fault” rules for individuals involved in car accidents.

What Is “No-Fault”?

In a “no-fault state”, a driver’s insurance company will pay any damages, medical bills, and other expenses that result from a car accident. If the insurance policy limit has been reached and no longer covers the remaining expenses from the accident, a claim under the other party’s insurance policy is made, or they can be sued for compensation.
Indiana is a not “no-fault” state, you can start by seeking compensation from the at-fault party’s insurance. If that coverage is insufficient, you can then file a claim based on your uninsured/underinsured motorist coverage.
It is extremely important to retain an experienced attorney to ensure that all applicable policies are considered for potential recovery and to make sure that all proper procedures and laws are followed to prevent any bars or restrictions to uninsured/underinsured motorist coverage recovery.

What is At Fault vs No Fault Insurance

What is “At-Fault”?

In an at-fault state, the blame and financial responsibility are given to individuals in the event of an accident where a loss occurs. In an at-fault state, the person that is responsible for any of the loss payments, including any medical and property damage bills due, is the party that was responsible for causing the incident. In a state with an “At-Fault” law, usually, the law enforcement officer is the party that determines who is at fault if an accident occurs.

Indiana’s No Pay, No Play Statute

Indiana has also implemented the “No Pay, No Play” statute. The No pay, No play laws are in place to prevent repeat non-insured motorists from collecting non-economic damages after being involved in an auto accident. The state classifies non-economic damages as the following:

  • Pain and suffering,
  • Emotional distress
  • Physical impairment
  • Mental anguish or mental distress

Again, the No Pay, No Play statute applies only to those who:
(1) Do not have liability insurance at the time of the accident
(2) Violated Indiana’s financial responsibility laws within the past five years.

Indiana’s No Pay, No Play Statute

Indiana Minimum Car Insurance Requirement

Minimum Liability Protection
The motor vehicle laws in the State of Indiana require every vehicle to have certain minimum liability insurance coverages. The minimum amount of car insurance liability coverage according to Indiana laws are as follows:

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

The goal of liability insurance is to pay for:

  • Medical bills
  • Damages
  • Injuries caused to
    •  Drivers
    • Passengers
    • Pedestrians

Uninsured/Underinsured Motorist Coverage

Aside from minimum liability insurance, all Indiana drivers are required to have uninsured/underinsured motorist coverage added to their auto insurance policy, unless the coverage is rejected in writing pursuant to Indiana law. Uninsured/underinsured motorist coverage provides a driver with additional coverage if the party who caused the accident does not have insurance or is an underinsured motorist.

Indiana Minimum Car Insurance Requirement

Have You Been in an Accident in a No-Fault or an At-Fault Liability State?

If you have been involved in a car accident in either state, the need for a personal injury attorney is definitely needed. You can find a personal injury attorney by