Indiana requires auto liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. Those 25/50/25 floors come from the Indiana Bureau of Motor Vehicles and are the legal minimum, not a recommendation after a serious crash on I-65, I-69, I-70, or I-80.

What do the $25,000/$50,000/$25,000 numbers pay?

The BMV's proof-of-financial-responsibility page and the Indiana Driver's Manual state that a person may not operate a motor vehicle in Indiana if financial responsibility is not in effect for that vehicle, or if the person is not otherwise insured to operate it. The required minimum includes $25,000 for bodily injury to or the death of one individual, $50,000 for bodily injury to or the death of two or more individuals in any one accident, and $25,000 for damage to or destruction of property in one accident.

Bodily injury liability pays people you injure, or the family of someone who dies, if you are responsible for a crash. The first number is the most the policy will pay for one person. The second is the most it will pay for everyone hurt in that accident, combined. Property damage liability pays for damage you cause to someone else's car or other property, up to $25,000 at the legal minimum.

Those floors can fall short of the cost of a serious injury or a newer vehicle. If a claim exceeds your limits, you can be personally responsible for the rest. A licensed local agent can quote higher liability limits and, if you have a house or savings to protect, an umbrella policy.

The Indiana Department of Insurance (IDOI) explains the usual coverages on an auto policy: bodily injury and property damage liability, medical payments, collision, comprehensive, and optional extras such as towing or a rental car. Collision and comprehensive are not a substitute for the 25/50/25 liability minimum. A lender may require those optional coverages if you have a loan or lease.

IDOI does not set auto rates, but companies must file rates and forms before they use them. When you compare quotes, ask each licensed agent to write down the same liability limits, deductibles, and optional coverages, including whether uninsured and underinsured motorist coverage has been rejected in writing.

How do you show proof, and what happens if you drive uninsured?

Keep a current insurance identification card and be ready to show it. After an accident, a pointable moving violation in certain situations, or another event that triggers a BMV request, the BMV may ask your insurer to file a Certificate of Compliance (COC) electronically. The COC must be received and processed within 90 days of the BMV's mailing of the request, or your driving privileges will be suspended. Contact your insurance company immediately and ask it to file the COC. Do not mail a completed COC to IDOI. IDOI warns that a form sent there will not reach the BMV and can put your driving privileges at risk.

The Driver's Manual says driving without a current liability policy that meets the state minimum is against the law. The BMV can impose driving-privilege suspensions and financial penalties, including reinstatement fees. If a court conviction or a BMV suspension requires proof of future financial responsibility, your insurer may need to file an SR-22 before privileges can be reinstated.

If you are new to Indiana, buy a policy that meets these minimums before you title and register the vehicle. New residents have 60 days to obtain an Indiana driver license and 60 days to title and register vehicles they own. The BMV requires proof of insurance to purchase a plate and registration.

A Certificate of Compliance, when the Bureau of Motor Vehicles requests one, must be filed electronically by the insurer. Do not mail a paper certificate to the Indiana Department of Insurance. Official BMV materials say the filing must be processed within 90 days of the Bureau's mailing, or driving privileges can be suspended. A court or BMV suspension may also require an SR-22 filing, which is a form your insurer files to prove coverage is in force. New residents generally have 60 days to obtain an Indiana driver license and 60 days to title and register a vehicle they already own, and proof of insurance is required to buy a plate.

FAQ

What auto liability limits does Indiana require?

At least $25,000 per person and $50,000 per accident for bodily injury or death, and $25,000 for property damage, as explained by the BMV and the Indiana Driver's Manual. This is commonly called 25/50/25 coverage.

What is a Certificate of Compliance?

It is the electronic filing your auto insurer makes with the BMV to show that financial responsibility was in effect. It must be processed within 90 days of the BMV's request, or driving privileges can be suspended.

Are the legal minimums enough after a serious crash?

They meet the law, but they may not meet the cost of a serious injury or a newer vehicle. Amounts above the minimum are a personal decision. A licensed local agent can quote higher limits and an umbrella policy.

Do I need Indiana insurance before I register a vehicle?

Yes. The BMV requires proof of financial responsibility to purchase a license plate and certificate of registration.

Next step

Ask a licensed local agent to review your declarations page against the $25,000/$50,000/$25,000 minimums, and to quote higher liability and uninsured motorist limits. If the BMV has requested a Certificate of Compliance, call your insurer the same day and ask it to file the form electronically.

Sources: Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility; Indiana Driver's Manual, Chapter 5; Indiana Department of Insurance, Auto Insurance; Indiana Bureau of Motor Vehicles, New Indiana Residents.

After an Indiana auto policy has been in effect 60 days, the company cannot cancel except for certain reasons, such as nonpayment or loss of a driver license. A nonrenewal at the end of the policy period requires 20 days' advance notice.

If you cannot find auto coverage in the regular market, you may apply to the Indiana Auto Insurance Plan through any insurance agent in the state.

What IDOI says about cancellation and nonrenewal

The Indiana Department of Insurance (IDOI) Auto Insurance page sets out the timing rules in plain language. Insurance companies may cancel your policy within the first 60 days of a new policy. After the policy has been in effect 60 days, the company cannot cancel except for certain reasons, such as your failure to pay the premium or losing your license to drive. At the end of the policy period, the company may refuse to renew, but it must give you 20 days' advance notice.

Read any cancellation or nonrenewal letter as soon as it arrives. Note the effective date, the reason, and whether the action is a midterm cancellation or a nonrenewal when the term ends. If the letter arrives late, or if the reason does not match IDOI's examples, you can ask the company in writing for an explanation and, if needed, file a written complaint with IDOI Consumer Services. A complaint does not automatically keep a cancelled policy in force, so arrange replacement coverage before the date in the letter.

Nonpayment is a common midterm reason. If a cancellation is for nonpayment, ask the company whether a payment can reinstate the policy and the exact deadline. Do not assume a late payment has restored coverage until you have written confirmation and a current identification card. Driving without 25/50/25 liability insurance remains unlawful, and the Bureau of Motor Vehicles can request a Certificate of Compliance after a crash or certain violations.

A nonrenewal is different from a midterm cancellation. The company is declining to offer another term, and IDOI says it must give 20 days' advance notice. Use that window to shop. Ask each licensed agent for quotes at the same liability limits, and confirm whether uninsured and underinsured motorist coverage will be included unless you reject it in writing. If you have had claims or a lapse, start the search early rather than waiting until the last week of the 20-day period.

When the regular market will not write the risk

IDOI asks, "Turned down by an insurance company?" and answers that you can apply for the Indiana Auto Insurance Plan through any insurance agent in Indiana. Each insurance company licensed in Indiana may participate by taking its share of the drivers who have difficulty buying insurance. The Plan is a residual auto market, not a shortcut to a cheaper preferred policy. Ask the agent what limits are available, what the premium will be, and how long the assignment lasts.

The Indiana FAIR Plan, by contrast, is a last-resort market for property insurance, not for auto liability. Do not confuse the two. If you were declined for homeowners coverage, the FAIR Plan is the property path. If you were declined for auto coverage, the Auto Insurance Plan is the path IDOI names.

Practical steps if you receive a cancellation or nonrenewal notice:

• Confirm the date coverage ends, and do not drive uninsured after that date.
• Ask the current company, in writing, for the reason and for any appeal or reinstatement option.
• Shop with more than one licensed agent, including an application to the Auto Insurance Plan if admitted companies decline the risk.
• Put the new policy in force before the old one ends, and keep both identification cards until the overlap is clear.
• If the BMV later asks for a Certificate of Compliance, have the insurer that covered the date of the incident file it electronically.

IDOI Consumer Services can answer general questions at 800-622-4461 or 317-232-2395. Formal complaints must be in writing.

Keep written quotes, declination letters, and the Auto Insurance Plan application with your policy file. If the Plan issues a policy, read the identifications, limits, and any SR-22 or Certificate of Compliance needs with the same care you would use in the admitted market. The 25/50/25 liability minimum still applies, and uninsured and underinsured motorist coverage still must be included on a newly written Indiana auto liability policy unless a named insured rejects it in writing.

FAQ

Can my Indiana auto insurer cancel my policy at any time?

Companies may cancel within the first 60 days of a new policy. After 60 days, IDOI says the company cannot cancel except for certain reasons, such as failure to pay the premium or losing your driver license.

How much notice is required if the company will not renew?

IDOI says the company must give you 20 days' advance notice if it refuses to renew at the end of the policy period.

What if several companies decline to insure me?

IDOI says you can apply for the Indiana Auto Insurance Plan through any insurance agent in Indiana. Licensed companies may participate by taking a share of hard-to-place drivers.

Is the Auto Insurance Plan the same as the FAIR Plan?

No. The Auto Insurance Plan is a residual market for auto coverage. The Indiana FAIR Plan is a last-resort market for property insurance.

Next step

If you have a cancellation or nonrenewal letter, ask a licensed local agent to quote replacement coverage that meets the 25/50/25 minimums before the date in the notice, and to apply to the Indiana Auto Insurance Plan if admitted companies decline the risk.

Sources: Indiana Department of Insurance, Auto Insurance; Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility; Indiana Department of Insurance, File an Insurance Company Complaint.

A standard Indiana homeowners policy generally does not cover flood damage. Separate flood insurance, often through the National Flood Insurance Program (NFIP), normally will not go into effect until 30 days after you purchase the policy, a point the Indiana Department of Insurance (IDOI) has repeated in its flood insurance consumer alert.

That delay is one of the most common coverage surprises after a storm.

Why a homeowners policy is not enough

IDOI's flood alert asks, "Will my homeowners policy respond to a flood loss?" and answers: generally speaking, a homeowners policy will not cover flood loss. Some companies offer a hydrostatic-pressure endorsement, but IDOI says most of those endorsements cover only collapse of the structure due to hydrostatic pressure and do not insure other flood-related damage. Some policies provide limited coverage for sewer or drain backup, but IDOI notes that most of those provisions exclude backup as a result of flood and often limit payment to amounts usually less than $5,000. A scheduled property floater for listed items such as jewelry or art may respond to flood on those items; review the policy rather than assuming it.

A flood, as IDOI restates from the NFIP, is an excess of water or mud on land that is normally dry, including inundation of two or more acres of normally dry land or of two or more properties from overflow, unusual surface-water accumulation, mudflow, or certain shoreline collapse. That is a different peril from wind or a typical plumbing leak.

IDOI also cautions against treating a mortgage company's decision as a flood-risk analysis. Just because a lender does not require a flood policy does not mean the property cannot flood. The NFIP policy is designed to pay most damages resulting from a flood, IDOI says, and the household still has to decide how it would pay for a loss without that coverage.

Vehicles are different from buildings. If you carry "other than collision" coverage, formerly called comprehensive, IDOI says flood damage to a car, truck, SUV, or motorcycle should be covered up to actual cash value at the time of loss, minus the deductible. Towing and road-service coverage, if you have it, may also help with removal of the vehicle.

How to buy coverage, and what the waiting period means

You can buy flood insurance for a home or business whether or not the property is in a mapped floodplain, as long as the community participates in the NFIP, IDOI says. Purchase it from a property and casualty agent or company. To confirm community participation, IDOI has pointed consumers to FEMA's Indiana community list, and an agent can confirm availability and cost. IDOI has described NFIP dwelling coverage of up to $250,000 for the home and, for an additional premium, up to $100,000 for contents, with higher limits described for non-residential buildings. Confirm current limits and deductibles with the agent and with FloodSmart.gov, because program details can change.

Plan ahead. A former IDOI commissioner, quoted in the Department's alert, stressed that a flood insurance policy normally will not go into effect until 30 days after you purchase it. Waiting until water is already rising is often too late for that event. Ask the agent about any exception, including coverage required at a loan closing, and about the waiting period on a private flood policy if one is offered.

Look up the property on FEMA's Flood Map Service Center, then compare an NFIP quote and, if available, a private flood quote. After a flood, IDOI advises protecting the property from further loss, separating damaged property, documenting losses with photos and lists, and filing a proof of loss within 60 days. For more information, IDOI points to FloodSmart.gov and to the Department at 800-622-4461.

IDOI has also warned that hydrostatic-pressure endorsements usually cover only collapse, and that sewer or drain backup coverage often excludes flood and is often limited to usually less than $5,000. Comprehensive coverage, sometimes labeled "other than collision," should cover flood damage to a vehicle, generally at actual cash value minus the deductible. NFIP claims typically require a proof of loss within 60 days. IDOI has described NFIP building coverage up to $250,000 and contents coverage up to $100,000; confirm current limits with a licensed agent and with FloodSmart.gov, because program rules can change. Check the Flood Map Service Center at msc.fema.gov for the property's flood zone before you buy or renew.

FAQ

Does a standard homeowners policy in Indiana cover flooding?

Generally no. IDOI states that a homeowners policy will not cover flood loss, with only limited possible exceptions such as certain hydrostatic-pressure or sewer-backup endorsements, which often do not cover a typical flood.

How long before NFIP coverage takes effect?

IDOI says a flood insurance policy normally will not go into effect until 30 days after you purchase it. Ask a licensed agent about exceptions, including a policy required at a loan closing.

If my lender does not require flood insurance, am I safe to skip it?

Not necessarily. IDOI warns not to confuse a mortgage requirement with the actual flood exposure on the property.

Is flood damage to a car covered by auto insurance?

If you carry other-than-collision (comprehensive) coverage, IDOI says flood damage to the vehicle should be covered up to actual cash value minus the deductible.

Next step

Look up the property on FEMA's Flood Map Service Center, then ask a licensed local agent to quote NFIP or private flood coverage, including the waiting period, building and contents limits, and whether your community participates in the NFIP.

Sources: Indiana Department of Insurance, Flood Insurance; National Flood Insurance Program, FloodSmart; FEMA Flood Map Service Center.

Indiana insurance complaints must be submitted in writing to the Department of Insurance (IDOI) Consumer Services Division. The online Consumer Complaint Portal is the preferred and most efficient method, according to IDOI. You may also mail or fax the Insurance Complaint Form. By Indiana law, the company has 20 business days to respond in writing to IDOI.

What IDOI can and cannot review

IDOI regulates insurance companies, producers, and HMOs that are licensed to conduct business in Indiana. Consumer Services can assist with inquiries or complaints about health, life, automobile, and property and casualty policies. IDOI lists coverage concerns, claim disputes, premium issues, policy cancellations, and refunds as examples of appropriate issues.

Contact the insurance company, agent, or broker first and try to resolve the problem. If you do not receive a satisfactory response, file a complaint with the Division. Provide as much information as possible. IDOI warns that a copy of your complaint will be provided to the insurance company, and that failing to include supporting documentation may delay or even prevent assistance. Send copies, not originals, of the declarations page, cancelled checks, denial letters, and other correspondence. The Department says it is not responsible for lost original records.

Jurisdiction has clear limits. Generally, Indiana law does not apply to insurance contracts issued in other states. If your policy was issued in Ohio, for example, IDOI says Ohio law applies and you will need to contact that state's regulator. Employer self-funded plans, where the employer pays medical expenses rather than contracting with a health plan, fall under the U.S. Department of Labor, not IDOI. The Department also does not have jurisdiction over federal programs such as the Federal Employee Health Benefit Program, Medicare, Medicaid, HIP, workers' compensation, and Social Security.

For general questions, Consumer Services can be reached at 800-622-4461 or 317-232-2395, or at consumerservices@idoi.in.gov. Use the written complaint process for a formal complaint, not only a phone call.

How the complaint process works

IDOI says a submitted complaint is typically processed within 72 hours of receipt. You will receive a confirmation letter with a problem report number and the name of the consultant handling your file. Refer to that number in any later correspondence. IDOI then mails your complaint, with a Department letter, to the company or agency. The company has 20 business days to respond in writing. After IDOI receives that response, it will send you a copy of the company's response along with the Department's response. Your complaint will be kept on file and will become a public record.

To file online, start at IDOI's File an Insurance Company Complaint page and use the Online Consumer Complaint Portal. To file on paper, print the Insurance Complaint Form and mail it to IDOI, Attn: Consumer Services Division, 311 W. Washington Street, Suite 300, Indianapolis, IN 46204-2787, or fax it to 317-234-2103.

A short, dated timeline helps the consultant: the policy and claim numbers, what happened, when you contacted the company, and what you are asking IDOI to review. Stick to facts and attach the documents that support them. Filing a complaint does not, by itself, stop a policy deadline or a suit-limitation period. If a deadline is close, talk with a licensed local agent and, if needed, a lawyer about preserving your rights while the Department reviews the file.

Suspected insurance fraud can be reported as well. For fraudulent activity in Indiana, IDOI points consumers to Consumer Services at 1-800-622-4461 or 317-232-2395. The formal complaint and a fraud report are not always the same filing, so ask the Division which form to use if fraud is the issue.

The mailing address for a paper complaint is IDOI, Attn: Consumer Services Division, 311 W. Washington Street, Suite 300, Indianapolis, IN 46204-2787. The fax number listed by the Department is 317-234-2103. Use the current Insurance Complaint Form from the IDOI website rather than a photocopied older version. IDOI notes that a complaint becomes a public record, so do not include unnecessary personal data that is not needed to describe the dispute. After you receive the problem report number, keep it with your claim file, the 20-business-day response deadline, and any later letters from the company or the Department.

Have your policy number, the claim number if one exists, the dates of loss or of the disputed billing, and a short timeline ready before you open the portal. IDOI can ask clearer questions of the company when those facts are in the written complaint from the start. Phone calls to 800-622-4461 or 317-232-2395 are useful for general questions, but they do not replace the written filing that starts the 20-business-day response clock.

FAQ

Do I have to complain to the company before I contact IDOI?

IDOI asks you to contact the company, agent, or broker first. If that does not resolve the issue, file a written complaint.

Can I file a complaint only by phone?

No. Consumer complaints must be received in writing. Specialists can answer general questions by phone at 800-622-4461 or 317-232-2395.

How long does the company have to respond to IDOI?

By Indiana law, an insurance company has 20 business days to respond in writing to IDOI.

What if my policy was issued in another state?

IDOI says Indiana law generally does not apply to policies issued in other states. Contact the insurance regulator in the state where the policy was issued.

Next step

Call IDOI Consumer Services with general questions if you need help framing the issue, then file the written complaint online or by mail and talk with a licensed local agent about coverage, deadlines, and next steps on the claim itself.

Sources: Indiana Department of Insurance, File an Insurance Company Complaint; Indiana Department of Insurance, Complaints; Indiana Department of Insurance, Consumer Services.

The Indiana FAIR Plan can offer limited dwelling or homeowners coverage if at least three insurance companies have declined the risk. Coverage is written on an actual-cash-value basis, not replacement cost, and a homeowners building or a dwelling-fire policy has a $250,000 maximum. Apply only through a licensed Indiana agent. The agent cannot bind the coverage.

What the FAIR Plan is, and what it is not

The Indiana Basic Property Insurance Underwriting Association, also called the FAIR Plan, was established in 1968 to make basic property insurance available when the normal market will not. The Plan's own site says it is not intended to compete with the voluntary market and is designed as a last resort. It is a voluntary association of companies licensed to write property insurance in Indiana.

Eligibility starts with declinations. The Plan offers dwelling and commercial insurance to Indiana residents who have been declined coverage by at least three non-related insurance companies. The declination is verified in section 2 of the application. At renewal, you must again show proof of three declinations within the prior 60 days. Keep the written refusals, company names, and dates.

Coverage is limited, and the consumer FAQ is direct about that. Vacant or unoccupied buildings are not eligible, unless the property is under active renovation by a licensed contractor and the work will be completed and the home occupied within 90 days. The Plan can insure owner-occupied and non-owner-occupied dwellings, some occupied commercial buildings, personal property on owner-occupied property, and contents for renters and condominium owners, if the risk meets underwriting guidelines.

Available forms include a Dwelling Fire DP1 Basic policy, a Dwelling Fire DP2 Broad policy, a Homeowners Modified 8 Basic policy, a Homeowners 2 Broad policy, and a Commercial Fire policy for qualifying commercial risks. The FAIR Plan will not insure a home for replacement-cost value. It takes depreciation into account and uses actual cash value. The maximum for a dwelling-fire policy is $250,000, which includes both the building and its contents within that single limit. The homeowners policy maximum building coverage limit is $250,000. A commercial fire policy has a maximum of $1,000,000.

The Plan's only payment mode is annual. It does not accept payments by phone or credit card, and it does not offer installment plans. Policies are written for one-year terms. If you find other insurance while a FAIR Plan policy is in force, you may cancel and receive a refund of unearned premium by notifying the Plan and your agent in writing. The Plan does not backdate cancellations.

How to apply, and what to watch before you rely on it

Consumers must contact an insurance agent licensed to sell property insurance in Indiana. Agents do not have binding authority. No coverage is in place until FAIR Plan approval, acceptance, and written acknowledgment are provided. Applications are date-stamped when received as a possible effective date. After you apply, an inspection company will schedule an interior and exterior inspection, including basements. Coverage can be declined or limited if the inspection cannot be completed. Inspectors carry identification.

Before you treat a FAIR Plan quote as a complete homeowners replacement, ask the licensed agent to put the following in writing:

• The policy form (DP1, DP2, HO-8, or HO-2) and whether liability, theft, and other coverages are included or excluded.
• The actual-cash-value basis and the $250,000 building cap, or the combined building-and-contents cap on a dwelling-fire policy.
• The three declinations that support the application.
• The effective date, which is not the date you signed the agent's paperwork.
• Whether a separate flood policy is still needed. A FAIR Plan policy is not a flood policy.

IDOI lists the Indiana FAIR Plan among its homeowner and property-insurance resources. If you were cancelled or nonrenewed in the admitted market, shop there first, then use the FAIR Plan if three companies have declined the risk. For claims, the Plan tells you to contact your agent, and it publishes a claims number, 317-692-0572. The main consumer number is 317-692-0559.

The Plan's consumer materials list dwelling-fire forms DP1 and DP2, homeowners forms HO-8 Modified and HO-2, and commercial fire. Commercial fire coverage has a maximum of $1,000,000. Vacant or unoccupied property is generally ineligible unless it is under active renovation by a licensed contractor and will be completed and occupied within 90 days. Payment is annual only; the Plan does not take phone or credit-card payments, does not backdate cancellations, and writes one-year terms. An inspection of the interior, exterior, and basement is required. Claims can be reported at 317-692-0572, and general questions at 317-692-0559. The office address is 3502 Woodview Trace, Suite 100, Indianapolis, IN 46268.

FAQ

How many declinations do I need for the Indiana FAIR Plan?

At least three non-related insurance companies must have declined coverage. At renewal, the Plan again requires proof of three declinations within the prior 60 days.

Will the FAIR Plan pay replacement cost for my house?

No. The Plan takes depreciation into account and will not insure a home for its replacement-cost value. Limits are also capped, including a $250,000 homeowners building maximum.

Can my agent put coverage in force the day I apply?

No. Agents do not have binding authority. Coverage is not in place until the FAIR Plan approves the application and provides written acknowledgment.

Does the FAIR Plan cover a vacant house?

Generally no. Vacant or unoccupied buildings are not eligible, with a narrow exception for active renovation that will be finished and occupied within 90 days.

Next step

If admitted insurers have declined your home, ask a licensed local agent to document three declinations, explain the FAIR Plan's actual-cash-value limits in writing, and compare any remaining admitted-market option, including a separate flood policy if you need one.

Sources: Indiana FAIR Plan, Consumers; Indiana FAIR Plan, Home; Indiana Department of Insurance, Types of Insurance.

Each newly written Indiana auto liability policy must include uninsured and underinsured motorist coverage unless you reject it in writing. The Indiana Department of Insurance (IDOI) lists minimum uninsured motorist bodily injury limits of $25,000/$50,000, uninsured motorist property damage of $25,000, and underinsured motorist bodily injury of $50,000.

What do UM and UIM pay?

Uninsured motorist (UM) coverage can pay, up to the limits of your own policy, when you are legally entitled to collect from a driver who has no liability insurance. Underinsured motorist (UIM) coverage can apply when the other driver has liability insurance, but those limits are not enough to cover your bodily injury claim. IDOI says these coverages allow you to collect the damages from your own insurance company.

The IDOI Auto Insurance page and the Department's Auto Insurance Facts publication set out the minimums this way:

• Uninsured motorists bodily injury: $25,000/$50,000.
• Uninsured motorists property damage: $25,000, for policies issued on or after July 1, 2017, according to the Facts publication.
• Underinsured motorists bodily injury: $50,000.

Those figures are floors, not a recommendation after a serious injury. If you carry $100,000/$300,000 in liability, ask whether your UM and UIM limits match those amounts, or whether a named insured has selected only the statutory minimum or has rejected the coverage. A written rejection is the key document. If you do not remember signing one, ask the agent for a copy of the rejection or the declarations page that shows the UM and UIM limits actually in force.

UM and UIM are easy to confuse with collision. Collision pays for damage to your own car after a crash, usually subject to a deductible, whether or not the other driver is insured. UM property damage, when it is on the policy, is tied to an uninsured motorist. Medical payments coverage, if you buy it, can pay medical bills for you and usually your passengers, up to the limit, without waiting on a liability finding. Compare each coverage by name, not only by the monthly premium.

How to read the policy and keep the coverage you want

Because the coverage must be included unless it is rejected in writing, a low quote that omits UM or UIM should raise a question, not a shrug. Ask the licensed agent to confirm, in writing:

• Whether UM bodily injury, UM property damage, and UIM bodily injury are all in force.
• The dollar limits for each, and whether they equal your liability limits or only the IDOI minimums.
• Whether a named insured has signed a rejection, and the date of that rejection.
• How a hit-and-run or a claim against an underinsured driver would be reported.

If you replace a vehicle, change companies, or receive a new application at renewal, review the UM and UIM lines again. A rejection given to one company does not automatically travel with you to a new insurer. IDOI also notes that after a policy has been in effect 60 days, a company cannot cancel except for certain reasons, such as failure to pay the premium or losing your license to drive, and that a nonrenewal requires 20 days' advance notice. Use that notice period to compare UM and UIM quotes before the old policy ends.

Higher UM and UIM limits cost more, but the legal minimum may not cover a serious injury. Talk with a licensed local agent about matching those limits to your liability coverage, and about an umbrella policy if you want another layer of protection. An umbrella may have its own rules for UM or UIM; do not assume the umbrella automatically follows the auto policy.

If a UM or UIM claim is denied, or if you believe the coverage was not offered or was removed without a written rejection, you can file a written complaint with IDOI Consumer Services after you have first contacted the company. Keep the declarations page, the rejection form if any, the police report, and the claim correspondence.

The written rejection has to come from a named insured. A spouse, a household member, or a later driver added to the policy should not assume that someone else's old rejection still speaks for a newly written policy. When you change companies, treat the new policy as a new decision: confirm the UM and UIM limits in the first declarations page, and keep a copy of any rejection with the policy packet. IDOI's Auto Insurance Facts publication is the official consumer summary of the minimums, including the July 1, 2017 date for the $25,000 uninsured motorist property damage figure. If an agent cannot point to that publication or to the declarations page, slow down before you sign.

FAQ

Is uninsured motorist coverage required on a new Indiana auto policy?

IDOI says each newly written Indiana auto liability policy must include uninsured and underinsured motorist coverage unless you reject this in writing.

What minimum UM and UIM limits does IDOI publish?

UM bodily injury of $25,000/$50,000, UM property damage of $25,000, and UIM bodily injury of $50,000. The Auto Insurance Facts publication dates the $25,000 UM property-damage minimum to policies issued on or after July 1, 2017.

Does rejecting UM also reject collision coverage?

No. Collision is a separate optional coverage for damage to your own vehicle. A UM rejection does not, by itself, add or remove collision.

How do I know whether I have already rejected the coverage?

Ask your licensed agent or company for the signed rejection, if one exists, and for a current declarations page that lists the UM and UIM limits.

Next step

Ask a licensed local agent to show you, in writing, whether your Indiana auto policy carries uninsured and underinsured motorist coverage at the IDOI minimums or at limits that match your liability coverage, and whether a written rejection is on file.

Sources: Indiana Department of Insurance, Auto Insurance; Indiana Department of Insurance, Auto Insurance Facts.