Uninsured vs. Underinsured Motorist Coverage in Indiana
Indiana treats a vehicle as underinsured when the bodily injury limits available to you from the people liable are less than your own UIM limits. UM and UIM must be offered unless rejected in writing.
Who counts as uninsured
IC 27-7-5-4(a) says an uninsured motor vehicle is one without liability insurance or not otherwise in compliance with the financial responsibility requirements, and includes an insured vehicle whose insurer cannot pay within the minimum limits because of insolvency. Insolvency protection applies only to accidents during the UM policy period when the tortfeasor's insurer becomes insolvent within two years after the accident.
Who counts as underinsured
Subsection (b) says an underinsured vehicle includes an insured vehicle where the limits available for payment to you under all bodily injury policies covering the people liable are less than your UIM limits at the time of the accident. It compares limits with limits, not with your damages, and does not include an uninsured vehicle.
Minimums and rejection
The minimum bodily injury limits are $25,000 per person and $50,000 per accident (IC 9-25-4-5). UM and UIM must be available in limits at least equal to your liability limits unless rejected in writing, and UIM must be offered in limits of at least $50,000 (27-7-5-2).
How much it pays
The maximum amount payable for bodily injury is the lesser of your per-person limit less what was paid by or for the people liable, and your damages less that payment (27-7-5-5(c)).
Deadlines and next steps
An action for injury to a person must be commenced within 2 years after the cause of action accrues (IC 34-11-2-4). Stacking is a separate question; see our statute post and the explainer, then use the Indiana UM/UIM stacking calculator.
A local personal injury attorney can review your claim — many offer a free consultation.
This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Indiana's rules apply to your specific case with a licensed Indiana attorney.