On roads like US 50 in Lawrenceburg, I-74 near St. Leon and SR 1 and SR 56, you share the road with drivers who may have no insurance at all. Nearly 15% of Indiana drivers are uninsured, and many more carry only the state minimum of $25,000 in bodily injury coverage, which a single emergency room visit can wipe out.
That is where uninsured and underinsured motorist coverage, known as UM/UIM, comes in.
Why minimum coverage leaves Indiana drivers exposed
Indiana law requires drivers to carry minimum liability coverage of $25,000 per person and $50,000 per accident. That sounds like a safety net, but it is a thin one. A serious crash involving surgery, hospitalization or lost wages can generate medical bills that far exceed those limits within days.
When the driver who hit you has no insurance, or not enough, their policy cannot cover what you are owed. Without UM/UIM coverage on your own policy, you may have no practical way to recover those damages.
How UM/UIM coverage actually works
Uninsured motorist coverage (UM) steps in when the at-fault driver has no insurance. Underinsured motorist coverage (UIM) applies when their policy limits are not enough to cover your losses. In both cases, you file a claim through your own insurer for your medical bills, lost wages and other damages up to your policy limits.
Under Indiana law, insurers must offer UM/UIM coverage equal to your liability limits when you purchase a policy. Many drivers unknowingly waive it in writing when signing their documents, often without realizing what they are giving up.
Why filing a UM/UIM claim does not mean higher rates
One of the most common reasons drivers hesitate to file a UM/UIM claim is the fear that their rates will skyrocket. This concern is largely a myth. Because a UM/UIM claim involves a crash caused by someone else, it is treated as a not-at-fault claim. While insurers generally do not apply at-fault surcharges for UM/UIM claims,
Indiana law does not strictly prohibit carriers from adjusting your policy rates or discounts upon renewal. Filing the claim you paid for is not the same as causing an accident. Speaking with an attorney before filing can help you understand your rights and what to expect from your insurer.
Protecting yourself on Dearborn County roads
If a crash in Dearborn County left you hurt and the at-fault driver carried little or no insurance, you may have more options than you think. An experienced attorney can review your policy, identify whether UM/UIM coverage applies to your situation, and help you pursue the compensation your injuries deserve.