Let’s say that you have found yourself in this tough predicament: you’ve been in a car accident in Indianapolis, but you don’t have auto insurance. Maybe something happened that caused you to lose your policy. Maybe you had been planning to deal with it but kept forgetting or running out of time. Maybe you didn’t even realize your policy had ended!
But now you’re looking at damage to your car and possibly personal injury to boot. Can you file a car accident claim in this situation?
The answer is complicated, especially if you were not the one who caused the accident. You’re probably left wondering, what happens if you have no insurance but the other driver was at fault in Indiana?
Assuming the other driver is at fault, their insurance company may insist they owe you nothing for your pain and suffering. They will argue that legally, you’re liable for the collision as you were driving sans insurance.
The police likely informed you that even though you were not responsible for your accident, you would still have to appear in court for an uninsured driver charge. The responding officer issued you a ticket and a monetary fine. It’s a lot of stress and it’s getting expensive — and it wasn’t even your fault?
How will you pay for car repairs and medical bills? Can you file a personal injury claim if you don’t have insurance? The good news is you still may have legal recourse to recoup your losses.
Uninsured Driver Accidents in the U.S. and Indiana
If you don’t have car insurance, you’re not alone. In 2019, 12.6% of U.S. drivers (or 32 million people) did not have any vehicle insurance coverage. Indiana ranks 15th in the U.S. for the highest number of uninsured drivers: 15.8% of Indiana drivers do not have any insurance.
Every year, 82% of the drivers who don’t have car insurance feel they cannot afford to make required policy payments. Car insurance may feel like an exorbitant cost when you’re struggling to make ends meet. However, if you drive, legally you are required to carry a policy for your vehicle.
If you are pulled over or involved in a car accident with no insurance, you could face legal consequences. Uninsured or underinsured insurance coverage carried by insured drivers costs an annual average of $13 billion.
Getting into a car accident without insurance is more than just inconvenient. It can be incredibly expensive and come with penalties and fines in addition to medical expenses and property damage costs.
Who is Required to Carry Auto Insurance in Indiana?
Indiana law requires all drivers to purchase car insurance, including uninsured driver insurance.
Insured drivers must have policies for at least $25,000 in bodily injury coverage, $25,000 in property damage coverage, and $50,000 in bodily injury as a result of accidents with under-insured drivers.
When insured drivers include both Bodily Injury Liability (also known as BI) and Property Damage Liability (or PD) on their car insurance policies, they protect both themselves and uninsured drivers. When someone suffers physical injuries or property damage as a result of an accident with an insured driver, their insurance company may still be required to pay for medical treatment and vehicle repairs. PD coverage may also pay for any incurred legal fees.
What is Uninsured Motorist Insurance?
In addition to carrying auto insurance, drivers in Indiana must carry Uninsured Motorist Insurance.
Twenty U.S. states, including Indiana, require this coverage, known as UMBI (Uninsured Motorist Bodily Injury). If a policyholder gets into an accident with an uninsured driver, and that uninsured driver is at fault, UMBI covers the insured driver’s costs.
Most UMBI policies will extend some coverage to at-fault policyholders who collide with uninsured motorists.
UMBI coverage extends to:
- Funeral expenses
- Lost wages
- Medical bills
In states where UMBI is not required, many auto insurance policies still include UMBI as optional coverage.
Common Causes of Car Accidents in Indiana
- Distracted driving (texting, eating, adjusting radio, etc.)
- Speeding and reckless driving
- Driving under the influence of alcohol or drugs
- Failure to yield the right of way
- Running red lights or stop signs
- Inclement weather conditions (rain, snow, ice, etc.)
- Vehicle defects or maintenance issues
- Inexperienced or fatigued drivers
- Improper lane changes or merging
- Following too closely to the vehicle in front
- Road debris or poor road conditions
- Aggressive driving or road rage
- Driver error or negligence
Indiana Laws on Uninsured Drivers
As an uninsured driver in Indiana, you can still file a claim after your car accident. However, you may still face consequences for failing to purchase car insurance. Some of the legal ramifications for uninsured drivers in Indiana include:
Driver’s license suspension
After your first offense, you will face a 90-day suspension of your license. After a second offense, your suspension will last for one year. A third offense will suspend your license for three years.
License reinstatement fees
A first offense requires you to pay $250 to have your license reinstated. A second offense will cost $500. If you’re uninsured and pulled over or involved in an accident for a third time, the fee is raised to $1000.
Required SR22 Insurance
SR22 insurance is a certificate of financial responsibility that exponentially raises your insurance rates. SR22 is typically a requirement for drivers with multiple driving infractions or DUI charges. Indiana mandates that uninsured drivers carry three years of SR22 insurance after an accident.
Vehicle Registration Suspension
Driving without insurance can lead to you being prohibited from renewing your vehicle registration for one year.
How to File a Claim Without Insurance
If you weren’t at fault in your accident but it occurred when you were uninsured, this does not diminish the validity of your claim. You may have a legal case for the personal injury you’ve endured.
Nonetheless, if you file a claim with an insurance company, the company may report your uninsured status to law enforcement and to the Indiana BMV (Bureau of Motor Vehicles).
When You Should File a Claim for an Accident with No Insurance
You may determine that filing a claim is worth the consequences you will face as an uninsured driver. If your accident was not your fault, the financial obligations that mount in the aftermath of your accident should fall to the at-fault driver.
Reasons to file a claim may include:
- Medical Expenses: Any doctor’s appointments, drug prescriptions, hospital stays, and surgical procedures related to your accident.
- Repair and Transportation Costs: If your vehicle was damaged in your accident or you needed another mode of transportation as a result of your accident, this could lead to potential compensation.
- Lost income: If your accident leads to documented unpaid time off from work, or you miss out on benefits (including bonuses or scheduled raises).
- Emotional distress: A documented diagnosis from a psychological professional of emotional trauma caused by your accident can be expensive and life-changing.
Uninsured Driver FAQ
Can I still file a claim if I was partially at fault for the accident?
Yes, you may still be able to recover some compensation due to Indiana’s comparative negligence laws. However, your compensation would be reduced by your percentage of fault. For example, if you were 30% at fault, you could recover 70% of your damages from the other driver’s insurance.
What if the other driver was also uninsured?
This makes the situation more complicated. You may need to pursue compensation through your own uninsured/underinsured motorist coverage if you have it. If not, you may need to file a lawsuit directly against the other driver.
How long do I have to file a claim in Indiana?
The statute of limitations for filing a personal injury claim related to a car accident in Indiana is generally two years from the date of the accident.
However, there are exceptions, so it’s best to consult a lawyer.
Will my credit score be impacted if I file a claim as an uninsured driver?
Filing a claim itself likely won’t impact your credit score directly. However, any fines, fees, or legal judgments against you for being an uninsured driver could potentially show up on your credit report.
Can I go through mediation or arbitration instead of court?
Alternative dispute resolution methods like mediation and arbitration may be options, especially if the insurance company is resistant to settling. An experienced attorney can advise if these routes make sense for your case.
What happens if you hit someone but don’t have insurance in Indiana?
If the at-fault party in an accident lacks insurance coverage, potential compensation may still be accessible to the victim through their own insurance provider, given they possess uninsured motorist coverage. This form of coverage serves as a fallback when collisions involve uninsured drivers. However, it is imperative to have secured this coverage prior to the incident. Conversely, for individuals responsible for an accident in Indiana without insurance, navigating the situation becomes complex. Indiana operates as an at-fault state, mandating uninsured drivers to bear full financial responsibility for all resulting damages in accidents they cause.
How a Car Accident Lawyer Can Help You
You can file a personal injury claim on your own. However, you may find your case easier to pursue with the assistance of a car accident lawyer.
Insurance companies are always reluctant to settle a claim filed by an uninsured driver. A seasoned, empathetic lawyer has dealt with these companies before and will know how to cut through an insurer’s red tape.
An attorney can also help you with the charges you may face for driving without insurance.
Although you are legally required to purchase auto insurance for your vehicle, this does not negate the suffering caused by your accident.
At Yosha Law, we are passionate about our insured and uninsured clients alike and consider them part of our family. We will help with your personal injury claim in Indianapolis and fight for what you’re owed.
We also offer an initial free case evaluation where we can help you explore the merits of your case and guide you through the legal process.
