Car insurance claim rules in Indiana

The clock on an Indiana claim

Section 27-4-1-4.5 of the Indiana Code lists unfair claim settlement practices. Among them are failing to acknowledge and act reasonably promptly on communications about claims, and failing to affirm or deny coverage within a reasonable time after proof of loss statements have been completed. The section sets no number of days.

Without a fixed deadline, your records carry more weight. Send your proof of loss early, ask in writing what the insurer still needs, and keep a dated log of every call. Our page on claims that drag on shows how to follow up in writing.

Your say over repair parts

Chapter 27-4-1.5 of the Indiana Code, on auto repair claims, applies when an insurer pays to repair the body of your car. Before it directs a body shop to make the repair, it must give you a written notice that you may approve the type of body parts used.

• Three choices. New parts from the car's manufacturer, new parts from another maker, or used parts.
• Your approval in writing. The insurer must let you mark your choice in writing, and it can't direct the shop to use a different type or refuse to pay for the parts you approved.
• Newer cars only. The rule applies in the five years after the car's model year.

A violation counts as an unfair claim settlement practice. More on choosing a shop and parts is in choosing a repair shop and parts.

When an Indiana car is a total loss

Under Section 9-22-3-3, a car manufactured within the last seven model years needs a salvage title when an insurer has decided it is economically impractical to repair and has made an agreed settlement with you. That is the insurer's own judgment, not a fixed share of the car's value. The 70% test in the same section applies to businesses that insure their own vehicles and to people who buy a car after it was damaged. A flood-damaged car also needs a salvage title.

The settlement should be the car's actual cash value before the crash, less your deductible. How to check it is in our guide to total loss claims.

Reporting an Indiana crash

Section 9-26-1-1.1 requires every driver in a crash to stop, give their name, address and registration number, and show their license. If anyone is hurt or killed, the driver must give reasonable help and notify the police at once by the quickest means: the local police inside a city, the county sheriff or nearest State Police post outside one, or a 911 operator. If you hit an unattended car or other property and can't find the owner, contact law enforcement.

Drivers don't file their own written report with the state. Under Sections 9-26-2-1 and 9-26-2-2, an officer investigates every crash with an injury, a death or apparent property damage of at least $2,500, and sends the report to the State Police within 24 hours of finishing the investigation.

Fault, deadlines to sue and complaints

Indiana is an at-fault state: the driver who caused the crash, through their liability insurance, pays for the damage. Under Section 34-51-2-6, you recover nothing if your fault is greater than the combined fault of everyone else who caused the harm, and otherwise your award drops by your share. Section 34-11-2-4 gives two years to sue for injuries and for damage to personal property such as your car.

1. Ask the insurer in writing for the reason for a denial or a low offer and the policy language it relies on.
2. Call the Indiana Department of Insurance consumer services line at 800-622-4461.
3. File a complaint about the insurance company on the department's website; our guide to insurance department complaints shows what to include.

Questions people ask