Indiana Car Accident Laws

The Short Answer

Indiana is an at-fault state, meaning the driver who caused the accident is responsible for resulting damages. Your ability to recover compensation depends on how fault is assigned, the available insurance coverage, and whether you file within the 2-year statute of limitations. If you are found more than 50% at fault, you cannot recover compensation under Indiana’s modified comparative fault rule. Violations of traffic laws can also be used as evidence when determining fault.

Key Takeaways

• Indiana is an at-fault state—the driver who caused the crash is responsible for damages.
• Under Indiana’s modified comparative fault rule, you can only recover compensation if you are 50% or less at fault, and your recovery is reduced by your fault percentage.
• You generally have two years from the date of the accident to file a lawsuit. Missing this deadline can bar you from recovering anything.
• Indiana requires a minimum 25/50/25 liability coverage, but these limits often fall short in serious injury cases.
• Traffic violations like drunk driving, distracted driving, speeding, and unsafe lane changes are commonly used as evidence when determining fault.
• Indiana law requires drivers to stop, exchange information, and provide reasonable assistance after a crash. Failing to do so can lead to criminal charges and affect your civil case.
• Insurance companies actively look for ways to shift fault to reduce payouts—early evidence collection is critical.
• Hit-and-run victims may need to rely on their own uninsured motorist coverage if the at-fault driver can’t be identified.

Indiana Laws That May Affect Your Car Accident Case

Car accident cases in Indiana are shaped by laws that determine who is responsible, how fault is shared, and how long you have to act. These rules affect whether you can pursue a lawsuit, how much compensation you can recover, and how insurance companies evaluate your case.

Indiana Is an At-Fault State

Indiana follows an at-fault system, meaning the driver who caused the accident is responsible for the resulting harm. Indiana is an at-fault state because it does not have “no-fault” laws, which force your insurance company to pay your medical bills, no matter who caused the crash. This “at-fault” status exists because state laws require drivers to carry insurance to pay for others and use a modified comparative fault rule to decide who is legally responsible for the damage (Ind. Code §§ 9-25-4-1(b)(2), 34-51-2-1 (2025)). After a crash, you have a few paths to pursue compensation:

• Through the at-fault driver’s insurance policy
• Through your own insurance coverage, if applicable
• By filing a car accident lawsuit against the at-fault driver

Because fault matters so much under this system, insurance companies focus heavily on who caused the crash and if they can pin the fault on you.

Modified Comparative Fault Law

Indiana uses a modified comparative fault system (Ind. Code § 34-51-2-6 (2025)), meaning your compensation can be reduced based on your share of fault in a car accident. If you are partly at fault, your compensation is reduced by that percentage. For example, if your total losses are $100,000 and you are 20% at fault, the most you could recover is $80,000.Under this rule, you can recover compensation only if you are 50% or less at fault. If you are found to be more than 50% at fault, you cannot recover compensation from the other party. Because of this, insurance companies often try to assign a higher percentage of fault to reduce what they have to pay.

How Fault Is Determined After a Car Accident

Fault in an Indiana car accident is based on the facts of how the crash happened, including carelessness, recklessness, or intentional action that lead to your injury (Ind. Code § 34-6-2-45 (2025)). Insurance companies, attorneys, and sometimes a jury, review the available evidence to decide who was responsible and whether fault should be shared.

In many cases, more than one driver may share fault. When that happens, each person’s actions are compared to determine their percentage of responsibility.

Indiana’s Statute of Limitations for Car Accident Lawsuits

Indiana law sets a time limit for pursuing a car accident lawsuit. In most cases, you have two years from the date of the accident to pursue a lawsuit for injuries or vehicle damage (Ind. Code § 34-11-2-4 (2025)). If you miss this deadline, you may not be able to recover compensation, even if the other driver was clearly at fault.

Exceptions to the Deadline

Claims Involving Government Entities
If your accident involves a government vehicle or agency, shorter notice deadlines may apply under the Indiana Tort Claims Act:

• Claims against a city or county: notice required within 180 days (Ind. Code § 34-13-3-8 (2025))
• Claims against the State of Indiana: notice required within 270 days (Ind. Code § 34-13-3-6 (2025))

These are not the same as the standard lawsuit deadline. They are early notice requirements that must be met for a case to move forward.

Minors
If the injured person is under 18 (referred to in law as a person under a “legal disability”), the timeline to pursue a lawsuit is extended. The 2-year period typically does not begin until the person turns 18, giving them until their 20th birthday to file (Ind. Code § 34-11-6-1 (2025)).

Discovery Rule (Limited Situations)
In rare cases, the deadline may be affected if an injury is not immediately discovered. While there is no specific code for this rule, Indiana courts use it to decide when the 2-year period in Ind. Code § 34-11-2-4 actually begins. It generally only applies if you could not have known you were injured when the accident happened.

Concealment
If the person who caused the accident intentionally hides evidence or their involvement to prevent you from filing a claim, the law may “pause” the deadline until the situation is discovered(Ind. Code § 34-11-5-1 (2025)).

Insurance Requirements in Indiana

Indiana law (Ind. Code § 9-25-4-5) requires drivers to carry minimum liability insurance:

• $25,000 for bodily injury to one person
• $50,000 total for bodily injury per accident
• $25,000 for property damage

This is referred to as 25/50/25 coverage. Insurers must also offer uninsured and underinsured motorist coverage, though drivers can reject it in writing. These minimums are often insufficient for serious injuries, making available coverage a common limiting factor in how much a car accident settlement may be worth.

Traffic Laws That Commonly Affect Fault in Indiana Car Accidents

State law (Ind. Code § 9-21-8-59 (2025)) prohibits drivers from holding or using a handheld mobile device while driving. Hands-free technology is permitted, but any manual phone use can result in a citation. Phone records, witness statements, or video footage may be used to establish fault when distraction is involved.

Distracted Driving Laws in Indiana

State law (Ind. Code § 9-21-8-59 (2025)) prohibits drivers from holding or using a handheld mobile device while driving. Hands-free technology is permitted, but any manual phone use can result in a citation. Phone records, witness statements, or video footage may be used to establish fault when distraction is involved.

Drunk Driving Laws and Dram Shop Liability

Indiana law (Ind. Code § 9-30-5-1 (2025)) makes it illegal to drive while intoxicated. A driver is considered impaired at a BAC of 0.08% or higher, or if otherwise unable to safely operate a vehicle. Police reports, chemical tests, and arrest records are commonly used as fault evidence.

Indiana’s dram shop laws can also extend responsibility to a bar, restaurant, or retailer that served alcohol to a visibly intoxicated person who later caused a crash, provided there is evidence that the service contributed to the accident.

Speeding and Unsafe Driving Laws

Under state law (Ind. Code § 9-21-5-2 (2025)), drivers must travel at a speed that is reasonable and safe for current conditions—not just within posted limits. A driver can be found at fault even without technically speeding if conditions called for slower travel. Excessive speeding may also fall under reckless driving laws, further supporting a fault finding.

Aggressive Driving and Road Rage

Aggressive driving—tailgating, weaving, refusing to yield—can be used as fault evidence. More extreme road rage behavior may lead to criminal charges under state law (Ind. Code § 9-21-8-55 (2025)) and plays a significant role in how fault is assigned.

Unsafe Lane Changes and Sideswipe Accidents

Under Ind. Code § 9-21-8-24, drivers must signal and confirm it’s safe before changing lanes. Unsafe lane changes are a common cause of sideswipe accidents. The driver who made the unsafe move is typically found at fault, though fault can be shared if the other driver was speeding or driving in a blind spot.

What Indiana Drivers Must Do After a Car Accident

Indiana law places specific duties on drivers after a crash. Failing to follow these requirements can lead to criminal charges and may affect how fault is evaluated (Ind. Code § 9-26-1-1.1 (2025)).

When a Car Accident Must Be Reported in Indiana

Indiana law requires certain accidents to be reported to law enforcement. These rules depend on what happened in the crash, including whether anyone was injured or property was damaged (Ind. Code § 9-26-1-1.1 (2025)).

• Accidents Involving Injury or Death: Must be reported to law enforcement immediately by calling 911 from the scene (Ind. Code § 9-26-1-1.1 (2025)(a)(3)(2025)).
• Crashes Involving Property Damage: If an unattended vehicle or property is damaged, the driver must attempt to locate the owner. If unsuccessful, they must notify law enforcement (Ind. Code § 9-26-1-1.1 (2025)(a)(4)(2025)).
• Reporting Requirements and Proof of Insurance: Drivers may need to show proof of insurance to law enforcement after a crash. If the Indiana BMV requests proof of financial responsibility, the driver’s insurer typically submits it on the driver’s behalf (Ind. Code § 9-25-5-4 (2025)).

Hit-and-Run Laws in Indiana

Indiana law requires drivers to stop, remain at the scene, and follow certain steps after a crash. When a driver leaves without doing so, it is commonly referred to as a hit-and-run (Ind. Code § 9-26-1-1.1(b)(2025)).

• What Counts as Leaving the Scene: A driver may be considered to have left the scene if they fail to stop, don’t provide required information, or leave before helping injured individuals—even if they initially stopped.
• Criminal Consequences Versus Civil Consequences: Leaving the scene can lead to criminal charges and complicate a civil case by making it harder to determine fault or recover compensation.
• Insurance Issues in Hit-and-Run Crashes: If the at-fault driver cannot be identified, the injured person may need to rely on their own uninsured motorist coverage.

How These Laws Affect Your Car Accident Claim

The value of a personal injury lawsuit depends on injury severity, medical costs, lost income, available insurance coverage, and how fault is assigned. Compensation may be limited by policy limits or reduced if you share fault. Under Indiana’s modified comparative fault rule, you cannot recover anything if you are more than 50% at fault—making even small fault disputes consequential.

Questions About Indiana Car Accident Laws? Talk to the Ken Nunn Law Office

Understanding how Indiana’s car accident laws apply to your situation can be difficult, especially when fault is disputed or injuries are involved. The Ken Nunn Law Office can review what happened, explain how Indiana law applies, and help you take the next steps. If you were injured in a car accident, contact the Ken Nunn Law Office to discuss your case.