In an issue of first impression, the Indiana Court of Appeals ruled recently in an Indiana car accident lawsuit that a vehicle that is insured but denied coverage following a crash should be considered uninsured under state law.
The case has implications for future uninsured motorist (UM) claims in Indiana.
Indiana requires every newly-written auto liability insurance policy to include uninsured and underinsured motorist coverage – unless it’s rejected in writing by the insured. Minimum UM/UIM liability limits are $25,000 per person and $50,000 per accident of UM benefits, $25,000 per accident for property damage, and $50,000 per accident for UIM benefits. This coverage protects insureds in the event they are involved in a crash with an at-fault driver who either doesn’t have auto insurance (as required by law) or doesn’t have enough auto insurance liability coverage to cover the full cost of the plaintiff’s injuries and damages.