What Happens If the Person at Fault in an Accident Has No Insurance in Indiana?

In Indiana, a driver whose actions led to an auto crash is financially liable for the bodily and property damages incurred during the accident. The State of Indiana operates an "at-fault" or tort-based liability system for auto insurance (IC 34-11-2-5). This means that whoever is more than 50% responsible for an accident is mandated by law to cover the cost of damages incurred during the accident. The other party is entitled to full compensation provided they are not at fault; if they have any percentage fault, their compensation is reduced by the amount of their percentage fault. If the at-fault driver has no insurance or is underinsured, the victim may have difficulty getting financial compensation, as the uninsured driver may be financially incapable of paying for the medical bills, damages, and wage loss caused by the accident from their assets. Driving without insurance is also considered a violation of state law and may result in penalties under Indiana traffic violations and infractions, including license suspension, fines, and reinstatement fees.

Is It Illegal To Drive Without Insurance In Indiana?

Per In. Code § 9-25-8-2, driving without any form of insurance or financial liability is a Class A infraction or a Class C misdemeanor if the offender intentionally violates this law and has a previous unrelated conviction or judgment under this law. Some of the penalties attached to driving without insurance in Indiana include:

• Suspension of license for at least ninety days (first-time offender) or one year (subsequent offenders)
• Payment of $250 for reinstatement and reissuance of the license
• Filing of the SR-22 certificate for a period of 180 days (first offense), three years (second offense), or five years (third offense) under IC 9-25-4-1
• Vehicle impoundment
• Monetary Fines ranging between $500 (second time offender) and $1,000 (third time offender)
• Possible jail time

What Is the Minimum Insurance Requirement in Indiana?

Under IC 9-25-4-5, the minimum insurance liability requirements for motor vehicles are:

• $25,000 for bodily injuries or death for one person
• $50,000 for bodily injuries or death caused to two or more persons per accident
• $25,000 for property damages per accident

According to IC 27-7-5-2, insurance companies are mandated to offer Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage up to $25,000 (per person) or $50,000 (per accident) to vehicle owners, but the insured is at liberty to reject the offer in writing. MedPay coverage is also an optional coverage, but insurance companies are not mandated by law to offer it to vehicle owners.

What To Do After A Car Accident With an Uninsured Driver in Indiana

Motorists who get involved in an accident caused by an uninsured driver may follow the outlined steps below:

• Report to the nearest law enforcement agency using the Indiana Crash Report (BMV Form 20468) if it involves death, injury, or damages up to $1,000 (Indiana Code § 9-26-1-1.1)
• Obtain medical help for themselves and others involved in the accident
• Take photos, videos, and other evidence of the accident that may be helpful during compensation or legal resolution processes
• Exchange contact information with the at-fault driver to follow up on compensation
• Contact their insurance company if they have Uninsured Motorist coverage
• Sue the uninsured driver for compensation under the State's third-party or personal injury claims

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Indiana's fault-based liability system ensures that the victim of an auto crash receives some amount of economic compensation even if they do not have an insurance policy. However, the extent of financial compensation they can receive depends on their percentage of fault. In addition, the No Pay, No Play rule (IC 34-30-29.2 and IC 27-7-5.1-5) enacted by the Indiana government restricts uninsured victims from pursuing compensation for non-economic damages from the at-fault driver.

Can I Sue an Uninsured Driver in Indiana?

Yes. Indiana law allows victims of auto crashes to file a personal injury claim against an uninsured at-fault driver within two years from the incident date (IC section 34-11-2-4). For cases involving damages up to $10,000 or less, applicants may file a suit with a Small Claims Court in Indiana (IC§ 33-28-3-4). For personal, property, or economic losses more than $10,000, a superior court will be the right place to file a suit. Judgements and financial compensation may be recovered through liens on real property or wage garnishments (Indiana Code § 22-4-13.3). Small Claims judgment may be renewed after 10 years and may last as long as 20 years (Indiana Code Section 34-11-2-12).

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Indiana?

Yes. Motorists with Uninsured or Underinsured motorist coverage in Indiana may seek compensation from their insurance company if the at-fault driver has no insurance. Uninsured or Underinsured motorist coverage usually covers both bodily and property damages incurred during the accident up to $25,000 per person or $50,000 per accident. In addition, the victim may also lean on their MedPay or Collision coverages if available.

What Is Uninsured Motorist Coverage in Indiana?

Uninsured Motorist Coverage (UM) is a form of auto insurance that protects a vehicle owner from paying for damages caused by crashes with drivers without insurance or any form of financial liability. In cases where the at-fault driver lacks insurance, the insurance company of the victim with UM coverage covers the cost of medical bills, lost wages, property damages, and other non-economic damages.

Uninsured Motorist Coverage may also apply to accidents caused by hit-and-run drivers. In Indiana, UM coverage is optional, but insurers are mandated to provide it to vehicle owners unless they reject it in writing (IC 27-7-5-2). A person's UM coverage typically mirrors their liability limit, except they reduce or increase their limits by stacking up other coverages.

What If I Don't Have Uninsured Motorist Coverage in Indiana?

A person without Uninsured Motorist Coverage may pursue compensation if they get involved in an accident caused by another uninsured driver by:

• Filing a personal injury civil suit against the defendant in a small claims or superior court
• Requesting the suspension of the defendant's license if they refuse to satisfy the court-ordered compensation
• Following up with wage garnishments or property liens from court judgements
• Reaching an agreement with the at-fault driver or their representative to settle out of court.

How Do I Get Compensation from an Uninsured Driver in Indiana?

To get compensation from an insurance driver who is at fault, the claimant may file a civil suit with a small claims or superior court, depending on the severity of damages incurred. To begin the process, the claimant may visit the court clerk's office in the relevant County to file a complaint and pay the required fees (or apply for a waiver if available). Most courts allow online or mail filings.

After filling, the clerk issues a summons which must be served on the defendant at least ten days before the scheduled hearing date. During the hearing, the judge listens to arguments from both parties and decides the case according to the information contained in the Indiana Small Claims Rules or the Indiana Small Claims Manual. If the defendant fails to appear in court, a default judgment may be entered in favour of the plaintiff. Small Claims are usually resolved by mediation, alternative dispute resolution, settlements, or court-ordered restitutions.

How Much Can You Recover From an Uninsured At-Fault Driver in Indiana?

Under Indiana Code, a victim is allowed to sue an uninsured at-fault driver for economic compensation. However, the financial capabilities of the uninsured driver may limit or delay the compensation received by the claimant. For minor injuries and damages resolved by Small Claims Court, the damage cap is $10,000 (IC§ 33-28-3-4). Major injuries that are settled in Superior or other courts typically have no claim limit or damage cap. Under Indiana law, civil judgements have an annual interest rate of 8% effective from when the judgement is entered unless a contract stipulated otherwise (Indiana Code 24-4.6-1-101).

How To Find Out If the At-Fault Driver Has Insurance in Indiana

It may be possible to find out if an at-fault driver has insurance in Indiana by:

• Requesting a copy of the vehicle crash report from the state police or local police departments
• Submitting an Indiana Crash Report (Form 20468) to the Bureau of Motor Vehicles
• Directly asking the driver at fault
• Making an investigation through the victim's insurance company
• Suing the driver and getting insurance information during the discovery phase of the litigation

Are Accidents Public Record in Indiana?

Yes. Indiana's Access to Public Records Act (APRA), contained in Indiana Code 5-14-3-3, permits public access to records created and maintained by law enforcement agencies, including accident reports (IC 9-26-2-3). However, certain restrictions may apply to public access to these records. For instance, accident reports of active investigations may not be publicly available. In addition, certain sensitive information contained in accident reports may be redacted from public access.

Can You Go to Jail for Causing an Accident Without Insurance in Indiana?

While driving without insurance is illegal in Indiana, first-time offenses are considered Class A infractions punishable by fines, license suspension, vehicle impoundment, or filing a SR-22 certificate. Nonetheless, if the uninsured driver causes an accident that results in death or other severe damages, they may likely face jail time after a criminal proceeding. For subsequent offenders with a prior conviction for DUI or other motor vehicle crimes, jail time of up to sixty days may be part of the penalties meted out by law. In addition, providing false insurance documents may be considered a misdemeanor or felony and may attract jail time in Indiana.

Can You Settle With an Uninsured Driver Out of Court in Indiana?

Yes. Out-of-court settlements may be a faster and easier alternative to pursue compensation for accidents caused by uninsured drivers. However, such settlements may only be legally binding if they are written according to provisions contained in Indiana Contract law.

Can I Get Compensation If I Was Partially at Fault?

Yes, according to Indiana's modified comparative negligence rule (Indiana Code 34-51-2-6). Based on this rule, a party to an auto crash may receive compensation from the at-fault driver provided their percentage of fault is less than 50%. The compensation amount is, however, reduced by the percentage of the victim's contribution to the accident. For instance, if the victim is 20% at fault, they will only receive compensation for 80% of the damages incurred during the accident.