What You Need to Know About Underinsured Motorist Insurance in Indiana

Underinsured motorist insurance (UIM) is a critical aspect of auto insurance that every driver in Indiana should understand. This coverage is designed to protect you when you're involved in an accident with a driver who has inadequate insurance to cover the damages. Here’s what you need to know about UIM coverage in Indiana.

What is Underinsured Motorist Insurance?

Underinsured motorist insurance provides financial protection when you suffer damages from an accident caused by a driver whose liability insurance limits are insufficient to pay for your losses. In Indiana, the minimum liability coverage required by law is $25,000 for injury or death of one person, which may not always be adequate in serious accidents.

Understanding the Importance of UIM in Indiana

Indiana ranks among the states with a considerable number of uninsured and underinsured drivers. Having UIM coverage can help you avoid significant out-of-pocket expenses resulting from an accident with such a driver. This insurance can cover medical expenses, pain and suffering, lost wages, and other damages.

How UIM Insurance Works

If you are involved in an accident where the at-fault driver has insufficient insurance, your UIM policy will kick in. For example, if you suffer $50,000 in damages, and the at-fault driver only has $25,000 in coverage, your UIM can help cover the additional $25,000 if you have that amount in your policy limits.

Coverage Limits and Costs

When purchasing underinsured motorist insurance in Indiana, you have the option to set your coverage limits. The cost of UIM coverage can vary depending on several factors including your driving record, the type of vehicle, and where you live. Typically, UIM premiums are quite reasonable compared to the extensive protection they offer.

Legal Requirements in Indiana

In Indiana, underinsured motorist coverage is not mandatory, but it is highly recommended. Many drivers opt for this coverage to safeguard their financial interests. If you choose not to carry UIM insurance, you may be required to sign a waiver when purchasing your auto policy.

Claims Process

In the case of an accident involving an underinsured motorist, it’s crucial to follow the proper claims process to ensure you receive the benefits you’re entitled to. You should report the accident to your insurance company as soon as possible and gather all relevant documentation, including police reports and medical records. Your insurer will then evaluate the situation to determine how much compensation you can receive under your UIM policy.

Conclusion

Understanding underinsured motorist insurance is essential for protecting yourself on Indiana roads. While it’s not a legal requirement, having UIM coverage can provide peace of mind and critical financial support in the event of an accident involving an underinsured driver. Be sure to discuss your options with your insurance agent to ensure you select a plan that best fits your needs.