The True Cost of Being Uninsured: Protect Yourself on Indiana Roads

By: Melissa Brandt

How Important is your Uninsured/Underinsured Motorist Coverage?

Short answer? Very!

Imagine you’re driving home from work when another driver runs a red light and crashes into your vehicle. You did everything right, but then you discover the other driver doesn’t have insurance. Unfortunately, this situation is more common than many people realize.

A recent 2023 study by the Insurance Information Institute shows that about 14% of drivers in Indiana are driving on the road uninsured. That means roughly one in seven drivers on Indiana roads may not have insurance to pay for the damage they cause. As inflation continues to rise and wages remain stagnant, I think we are going to see a rise in people choosing to drive uninsured, or with lower liability limits, due to financial strain.

Your uninsured motorist coverage can step in to help pay for your injuries and/or any damages to your vehicle or property, in the event someone hits you and they don’t have any insurance or not enough. It’s super important to regularly review your auto coverage at least once a year to make sure you are properly insured.

When does Indiana Uninsured Motorist Property Damage kick in?

In Indiana, uninsured motorist property damage (UMPD) may help pay for damage to your vehicle or other covered property if an uninsured driver causes the accident. Because state laws and insurance policies vary, it’s important to understand exactly how your coverage works before you need it.

To qualify for UMPD in Indiana:

• The at-fault driver must be identified.
• You must be able to prove the driver was uninsured.

Will Filing a UM Claim Raise My Insurance Rates?

Many drivers worry that using their own insurance after an accident will automatically increase their premium. In many cases, accidents involving an uninsured driver are considered not-at-fault claims. This means typically have little or no impact on your rates. However, every insurance company has different underwriting guidelines, so the outcome can vary by carrier and claim history.

You can’t control whether other drivers carry enough insurance, but you can make sure your own policy protects you. Give our office a call at 765-838-2781 for a free insurance review to make sure you have the correct coverages in the place!