Uninsured and Underinsured Motorist Coverage in Indiana, Explained
Uninsured and underinsured motorist coverage is one of the least understood pieces of an auto policy, largely because most drivers never think about it until they need it. Indiana requires carriers to include it on new policies by default — though you're allowed to decline it in writing — which tells you something about how much regulators think it matters.
Uninsured motorist coverage protects you when the driver at fault has no insurance at all. It's also what typically applies in hit-and-run situations, where there's no other driver to identify or file a claim against. Underinsured motorist coverage covers the gap when the at-fault driver does have insurance, but their policy limits aren't enough to cover your medical bills, lost wages, or other damages. Both exist because your own liability coverage only pays for damage you cause to others — it does nothing to protect you if someone else causes damage to you and can't pay for it.
This matters more in practice than most drivers assume. A meaningful share of drivers on the road carry only the state minimum, or no coverage at all, which means the driver who hits you may not have enough insurance to cover what you're actually owed. Without UM/UIM coverage on your own policy, you'd be left pursuing the at-fault driver directly for the difference — a process that's often slow and doesn't guarantee any real recovery if they don't have the assets to pay.
One detail worth knowing: in most cases, uninsured motorist coverage follows you as a person, not just your car. If you're a passenger in someone else's vehicle, or a pedestrian, and get hit by an uninsured driver, your own UM coverage can still apply.
Declining this coverage lowers your premium slightly, but it also removes a protection that exists specifically for situations outside your control. For most drivers, keeping it is one of the more straightforward "yes" decisions on a policy.
If you're not sure whether your current policy carries adequate UM/UIM limits, see our coverage guide for what to look for, or get a quote and ask directly what your options look like.
