Insurance Claim Rights in Indiana
Indiana is an at-fault state with modified comparative fault that bars recovery at 50% or more fault. The state requires liability insurance and offers uninsured motorist coverage that can only be rejected in writing. Indiana has a straightforward 2-year statute of limitations for both personal injury and property damage claims.
25/50/25
Min. Liability
2 yrs
PI Deadline
2 yrs
PD Deadline
Yes
Diminished Value
Fault System
How Indiana's At-Fault (Tort) System Works
Indiana is an at-fault (tort) state. This means the driver who caused the accident is financially responsible for the other party's damages. After an accident, you file a claim against the at-fault driver's insurance company. If the claim is denied or undervalued, you have the right to file a lawsuit to recover your damages.
Deadlines
Statute of Limitations in Indiana
Personal Injury
2 Years
You have 2 years from the date of the accident to file a personal injury lawsuit in Indiana. Missing this deadline permanently bars your right to seek compensation for medical bills, lost wages, and pain and suffering.
Property Damage
2 Years
For property damage claims (vehicle repairs, total loss, personal property), Indiana allows 2 years to file a lawsuit. This includes diminished value claims if applicable. Report damage to your insurer as soon as possible: report to insurer promptly; within 30 days recommended.
Coverage Requirements
Minimum Auto Insurance in Indiana
Indiana requires all drivers to carry at least 25/50/25 in liability coverage. These numbers represent the minimum bodily injury per person / bodily injury per accident / property damage limits in thousands of dollars. While these are the legal minimums, higher coverage is strongly recommended.
Bodily Injury / Person
$25,000
Maximum per injured person
Bodily Injury / Accident
$50,000
Maximum per accident total
Property Damage
$25,000
Maximum for property damage
Diminished Value
Diminished Value Claims in Indiana
Indiana Allows Diminished Value Claims
After an accident in Indiana, your vehicle may lose market value even after high-quality repairs — this is called "diminished value." Indiana allows you to file a diminished value claim against the at-fault driver's insurance to recover the difference between your vehicle's pre-accident and post-repair market value. The amount recoverable depends on the vehicle's age, mileage, damage severity, and repair quality.
Calculate your diminished valueKey Laws
Important Insurance Laws in Indiana
Indiana follows a modified comparative fault rule with a 50% bar (Ind. Code § 34-51-2-6).
Indiana requires uninsured motorist coverage unless rejected in writing by the policyholder.
Insurers must acknowledge receipt of claims within 10 business days and provide a decision within 45 days.
Resources
Indiana Department of Insurance
If you have a complaint about your insurance company or need help with a claim dispute in Indiana, contact the state Department of Insurance. They regulate insurance companies operating in Indiana and can assist with claim disputes, bad faith complaints, and coverage questions.
FAQ
Frequently Asked Questions About Indiana Insurance Claims
How does Indiana's comparative fault system work?
Indiana uses a modified comparative fault system. If you are found 50% or more at fault for the accident, you cannot recover any damages. If you are less than 50% at fault, your recovery is reduced by your percentage of fault.
Is uninsured motorist coverage mandatory in Indiana?
Indiana requires insurers to offer uninsured motorist coverage, and it is included by default. You can reject it, but only by signing a written rejection form. Given the number of uninsured drivers on the road, keeping this coverage is strongly recommended.
What is the deadline to file a lawsuit after a car accident in Indiana?
Indiana has a 2-year statute of limitations for both personal injury and property damage claims. You must file a lawsuit within 2 years of the accident date or you lose your right to seek compensation through the courts.
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