Indiana has the nickname the “crossroads of America.” But for the 6.8+ million people living in the Hoosier state, knowing Indiana car accident laws is also important. Because if you’re hurt in a car accident you didn’t cause, do you need an attorney to get fair compensation? Or are you better off dealing with the at-fault driver’s insurance company directly to cover your car repair and medical bill costs?
This guide will explain how Indiana state laws can affect your claim, including what insurance adjusters may not tell you. You’ll also learn when it make the most sense to call a lawyer about handling your claim instead of going it alone.
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Understanding How Indiana Car Accident Laws Affect Your Claim Payout: Key Takeaways
- Indiana car accident laws follow modified comparative fault rules to determine claim payouts. You can only recover money if you are less than 50% responsible for your accident. It also means any fault they pin on you will reduce your award by the same percentage amount.
- Insurance adjusters are financially motivated to pay you as little as possible, which can leave you under-compensated without legal representation.
- You may recover money for losses like medical bills, lost wages, or car repairs if you can provide receipts. However, you’ll probably need a lawyer to win any non-economic damages (i.e., money for pain and suffering or emotional distress).
- There is a hard two-year deadline to file an Indiana car accident lawsuit. If you fail to settle before that date passes, then you cannot receive any compensation at all.
- LegalASAP can connect you with an Indiana auto accident lawyer who usually charges legal fees only after your case wins. Every attorney we work with provides free consultations that cost $0 but reveal the true dollar value of your claim.
Steps to Take After an Indiana Car Accident
If anyone in your car or on the street needs medical attention, call 911 before you do anything else. This is a legal requirement under Indiana Code §9-26-1-1.1. Once you’re sure everyone is okay, check the rest of the accident scene. Are you blocking the road? In the middle of a busy intersection? To avoid making the situation worse, if you can, go ahead and move any vehicles involved out of the way. Be sure to check the other driver(s) and any passengers for injuries, too.
If you’re driving and strike an unattended parked vehicle, it’s also your responsibility to notify the other driver. Failing to complete this step could result in the police charging you with a misdemeanor or even felony charges.
Tips to Help Protect and Maximize Your Claim Value if You Think You Might Be Injured
- Get an immediate medical evaluation, even if you’re in shock and only have minor pain. Without medical bills, your auto insurance claim pays for car damage only. Waiting a few days or weeks just gives the insurer ammo to say you’re faking it to get a larger payout. To do this, ask for an EMT on the scene to evaluate you or head to the nearest ER.
- Call a lawyer before you report the accident to the other driver’s insurance provider. The claims adjuster will record your call and use anything you say against you to reduce your offer.
- Get videos and photos of any visible skid marks, car damage, weather and traffic conditions while you’re at the scene. You word vs. the other driver’s is never enough evidence to prove your version of how the accident happened.
Info to Gather at the Scene of the Crash
Though Indiana law doesn’t require it, anyone involved in an auto accident should exchange the following information:
- Full name, address, and contact info for all drivers (i.e., phone number, email, etc.).
- Car registration and auto insurance ID card/policy number.
- Driver’s license and license plate number.
- Make, model, and color for every affected vehicle.
Be sure to take lots of pictures and talk to any witnesses that saw the accident happen while you’re exchanging contact information.
Indiana Traffic Accident Reporting Requirements
Anyone involved in car accidents should gather as much information as they can at the scene. In Indiana, however, police have the legal responsibility for reporting every crash. Indiana code §9-26-2 requires law enforcement to investigate accidents in which any of the following occur:
- A physical injury
- Death
- Property damage that costs $2,500 or more to fix
The officer at the accident scene must submit a report summarizing the investigation within 24 hours to the state police. This report isn’t confidential and becomes available as a public record should you need to get a copy for yourself later.
What Indiana Car Accident Laws Say About Minimum Auto Insurance Requirements
Indiana state law states that a driver may not operate a motor vehicle unless that person can show proof of “financial responsibility.” What this means is that driving without car insurance is against the law in Indiana.
Indiana’s current liability insurance minimum coverage requirement is 25/50/25, an abbreviation that translates to:
- $25,000 in compensation to cover bodily injury/death costs for an individual victim
- $50,000 per car accident for all bodily injury and death costs combined, regardless of the number of victims
- $25,000 total for property damage, such as vehicle repair or replacement costs and other lost or damaged personal items
Are you a new driver? All first-time car insurance policies in Indiana must include uninsured or underinsured motorist’s coverage. All IN auto insurance providers must automatically include this coverage in your policy unless you explicitly reject it in writing.
There are dire consequences for violating Indiana car insurance laws. State law requires the Indiana Bureau of Motor Vehicles (BMV) to suspend your driver’s license if you choose to hit the road uninsured. That driver’s license suspension can last anywhere from 90-365 days total. Indiana can also charge financial penalties to reinstate your license after the suspension period ends.
Showing Proof of Financial Responsibility After an Accident Under Indiana Car Accident Law
You may receive a notification from the BMV after an auto accident due to Indiana’s insurance laws. This request asks you to show proof of financial responsibility (i.e. insurance) in a timely manner.
Contact your auto insurance provider and ask them to electronically send a Certificate of Compliance (COC) to the BMV within 90 days. This document helps prove you had legal coverage at the time of you incident. Failure to comply will once again result in you losing your right to drive.
Were you driving a company or rental car at the time? Then your employer or the rental company must also file State Form 55434 on your behalf. This “Affidavit – Proof of Financial Responsibility for Employer or Rental Vehicle” relieves you from personally having to provide such proof.
Anyone with suspended driving privileges will also need their insurance company to submit an SR22 form before reinstatement. This SR22 form shows authorities you now own a policy that conforms with Indiana’s auto insurance minimum coverage requirements.
Is Indiana a No-Fault State?
No, Indiana is not a no-fault state when it comes to automobile accidents. However, Indiana uses a comparative negligence system to divide up liability based on share of fault. Also known as modified comparative fault, this is in IC §34-51-2-5 and §34-51-2-6.
What Indiana’s Modified Comparative Negligence Law Means for Your Accident Claim
Look, you might think it’s easy to prove that someone else is very clearly 100% at fault for your collision. But in reality, insurance companies only stay profitable when they minimize claim payouts. Modified comparative negligence gives claims adjusters a huge financial incentive to place at least some blame on you. Indiana’s 51% comparative negligence rule can reduce your payout amount by your fault percentage. You can see the value of having an attorney fighting to reduce your share of blame when you have medical bills to pay:
| If Your Share of Fault For the Wreck Equals… | Your Max Settlement Offer From Insurance for Medical Bills and Property Damage Is… |
|---|---|
| 0% | $50,000 |
| 10% | $45,000, since the insurer can deduct $5,000 from your award based on your share of fault |
| 20% | $40,000 after the insurer deducts your $10,000 share of fault from your payout amount |
| 30% | $35,000 after deducting the $15,000 that represents your share of fault |
| 40% | $30,000 after your shared liability deduction of $20,000 |
| 50% | $25,000 for both your medical and car repair costs combined |
| 51%-100% | $0; you cannot legally get any money if your share of liability is above 50% total |
A 2022/2023 National Association of Insurance Commissioners report showed Indiana auto accident claims paid $23,128.46 for medical bills and $6,309.88 for property damage. Car accident lawyers can often increase your payout 1.5x-5x what insurers will offer to settle if you’re seriously injured.
Important: Anything you say to an insurance adjuster can potentially shift blame for the wreck onto you, even if it's unintentional. An attorney can handle all communications with insurers and push back against any unfair adjuster efforts to shrink or eliminate your payout. Should I Handle My Claim Myself or Hire an Indiana Car Wreck Lawyer?
To make this decision as simple as possible for you, we’ve broken all the most likely scenarios down into one simple table.
| If Your Claim Includes… | Handling Your Claim Alone | Hiring an Indiana Attorney |
|---|---|---|
| Only minor vehicle or property damage but no injuries | Can be reasonable, if the insurer’s offer covers vehicle repairs and rental car costs | Not always necessary, but a free consult can confirm you’re not leaving money on the table |
| Serious injuries that require ongoing medical treatment (like physical therapy or surgery) | You risk underestimating the true dollar value of any future medical care you’ll need and lost wages from missing work | Lawyer can calculate full medical costs, lost wages, and other non-economic damages to push for a higher settlement |
| Insurance adjuster claims you’re at least 50% responsible for causing the accident | May lose your chance for compensation if you accept the insurer’s version of events | Lawyer can challenge that share of fault under Indiana’s modified comparative negligence rules |
| Multiple cars involved / unclear who is most responsible for the accident | It’s hard to navigate a fair settlement on a claim with such a complicated blame split by yourself | Lawyer can investigate and allocate fault across multiple parties for maximum recovery |
Not every claim needs an attorney to reach a fair resolution, and you know your own situation better than we do.
Available Damages for Indiana Auto Accidents
Indiana allows victims of a car accident who are at less than 50% negligent to recover damages. These include both economic and non-economic damages.
Economic Damages
Economic damages are any money losses that arise after a car accident. These may include:
- Medical bills (but only existing ones; an attorney can get future physical therapy covered, too)
- Vehicle repair costs
- Lost work wages
- Loss of use of property (such as a damaged work laptop)
- Lost overtime, bonuses, or missed job promotions because of the time you missed at work (usually possible only with a lawyer)
Non-Economic Damages
Often called “general damages,” non-economic damages pay money to compensate you for accident costs you can’t show receipts for. Non-economic damages are harder to prove, so keeping detailed records might help. Examples of these “injuries” according to IC §34-30-29.2-2 may include:
- Physical and emotional pain and suffering
- Physical impairment
- Emotional distress
- Mental anguish
- Loss of enjoyment (meaning, not being able to pick up your kids, enjoy hobbies, or sleep well because you’re in pain)
- Loss of companionship, services, and consortium
Indiana abides by what some call the “No Pay, No Play” law under IC §34-30-29.2 and §27-7-5.1. State lawmakers passed these to encourage Indiana residents to carry auto insurance. These two state laws say no uninsured Indiana driver can receive non-economic damages, even if another person is 100% at fault.
Statute of Limitations in Indiana
The statute of limitations in Indiana is two years from the date of the accident per IC §34-11-2-4. However, there are a few exceptions. For example, if someone died as a result of the accident and a family member of the estate wants to file a wrongful death suit.
You might think two years is a lot of time to reach a settlement, but that’s not really true. I broke my leg in 2019, and I spent about three months just recovering from surgery and learning to walk again. I didn’t finish follow-up appointments and physical therapy for almost six months. For worse injuries, it could take you a year or longer to recover. Accepting an early settlement offer could leave you owing thousands in additional expenses that must come out of your own pocket. An attorney can make sure that doesn’t happen to you.
How LegalASAP Can Connect You With Your Local Auto Accident Lawyer
Indiana’s insurance requirements and modified comparative fault laws can make dealing with a car accident by yourself challenging. If you’re unsure whether you need a lawyer, a free case review lets you compare your options before you decide anything. LegalASAP can connect you with a nearby auto accident attorney to learn your claim’s true value, free of charge.
When you request a free claim review from our website, you stay in control. Your information stays safe, confidential, and only you get to decide whether to move forward or work with the attorney who calls you. Once the consultation ends, you aren’t required to do anything else.
So, you literally have nothing to lose and everything to gain — let us help you get started on your claim today:
Lori Polemenakos is Director of Consumer Content and SEO strategist for LeadingResponse, a legal marketing company. An award-winning journalist, writer and editor based in Dallas, Texas, she's edited several published books. Since 2016, she's published hundreds of articles about Social Security disability, workers' compensation, veterans' benefits, personal injury, mass tort, auto accident claims, bankruptcy, employment law and other related legal issues.
