Whether it is the other party’s policy or your own, dealing with insurance can be frustrating after an accident. Luckily, there are certain protections granted in the state of Indiana to make the process easier and fairer. While it can be complicated and confusing, this article lays out what you should and should not do to protect your Indiana Insurance claim.
Contacting Your Insurance
Most insurance companies require promptness when reporting an accident. Contacting the company quickly is crucial, as avoiding delays can limit complications with your claim. Even if you are not at fault and intend to pursue a claim against the other party’s insurance, you still need to report the incident to your own insurer.
At the scene, you should collect as much evidence as possible. You have the right to document the accident by taking photos, recording weather conditions, time of day, and any other relevant facts. After making sure everyone is okay, exchange the following information with the other driver:
- Full names and contact information
- Driver’s license numbers
- License plates
- Vehicle identification such as make, model, year, and color, as well as the VIN (Vehicle Identification Number) if available
- Insurers and policy information
Preserving this evidence, along with all medical bills, repair costs, and correspondence with the insurance company, could help strengthen your potential case. These records may be important if liability or damages disputes arise.
The first priority should always be to ensure the safety of everyone involved, but collecting this information, if possible, can make the process easier.
Describing the Incident
When answering questions, stick to the facts. Provide your insurer with an accurate but concise account of the accident.
Indiana follows a modified comparative fault system, meaning that damages will be reduced by a party’s percentage of fault in the accident, and parties 51% at fault or more are barred from recovery. This is why it’s important to provide an honest account of the incident while avoiding speculation or unnecessary admission of fault.
These situations can be emotional, but try to remain as neutral as possible. Avoid emotional statements or allegations against the other driver. Provide your insurer with any documentation you have, and let the company determine liability.
Regarding injuries, wait to make conclusive assertions until after you have received medical treatment. Injuries from accidents may not appear right away, so it’s best not to limit your claim by making statements like “I’m fine,” or “I’m uninjured.” Insurance adjusters can use this to deny or undermine claims about damage resulting from the accident.
Seeking medical care as soon as possible is critical not only to your health and safety, but to your potential personal injury claim as well. A delay in treatment could lead to arguments that injuries were caused by something unrelated to the accident.
What to Do If the Other Party’s Insurance Contacts You
Generally, Indiana law does not require you to speak with or provide a statement to the other party’s insurer before pursuing a claim. In fact, there can be some risks associated with answering questions from insurers other than your own. Anything you say in a statement could be used to lowball, minimize payouts, or misconstrue the situation.
If the insurance company contacts you, be cautious in any statements you give. They may ask for a recorded statement or present an early settlement offer. Before agreeing to either, consider consulting legal counsel. After signing a settlement agreement, you are generally unable to recover further damages or seek additional compensation. It may be in your best interest to speak to an attorney to ensure you aren’t leaving money on the table.
Bad Faith Insurance
The Indiana Unfair Claims Settlement Practices Act places regulations on how insurance companies are required to handle claims. Enforced by the Indiana Department of Insurance, state law mandates that insurance companies investigate a claim in a reasonable and timely manner. While some states provide a specific number of days, Indiana relies on the standard of “reasonably promptly”.
For insured drivers, this means that the response and decision by their provider cannot drag on or be intentionally ignored. Because of this regulation, insurers cannot employ stalling tactics such as requiring you to fill out redundant paperwork, misrepresenting policy limits, or delaying investigation unnecessarily.
Additionally, once insurers determine losses are covered by policy, they must operate in good faith to secure a fair, timely, and equitable settlement. Case law helps to establish what constitutes bad faith, beginning with Erie Ins. Co. v. Hickman by Smith. In this landmark case, the Indiana Supreme Court ruled that insurance companies have a duty to deal in good faith, and that a breach of such duty may constitute a tort claim, potentially including punitive damages.
Indiana courts have acknowledged several forms of conduct that may constitute bad faith, such as unfounded delays, deception, and other conduct that negatively affects the claims process. However, the insured must also prove that the insurance company intentionally acted in bad faith, consciously violating its duties as opposed to simply being negligent.
The verdict in the case of Monroe Guar. Ins. Co. v. Magwerks Corp. reaffirmed this requirement of deliberate violation of good faith, ruling that coverage disputes do not necessarily constitute bad faith, but it also does not preclude punitive damages in cases of bad faith.
This means that if the claim is successful, the plaintiff may recover additional damages resulting from the actions of the insurer, possibly including emotional distress or legal fees. However, to do so, damages must be directly and specifically traced back to the bad faith of the insurer.
While relatively uncommon, these types of disputes with insurance companies add unnecessary complications to an already stressful situation. If you feel your insurance is not handling your claim properly, an attorney can help assess the situation and determine next steps.
How Stewart & Stewart Can Help
Our legal team is here to assist in any way we can. If you are looking for legal representation or just want to understand your options, call Stewart & Stewart Attorneys at (317) 983-5915 or visit getstewart.com for a free consultation.