Detailed Answer
When you’re involved in a car accident in Indiana and the at-fault driver’s liability policy limits (for example, $25,000 per person) are exhausted, you have several avenues to recover additional rental car expenses or loss-of-use damages.
1. File an Underinsured Motorist (UIM) Claim
If you purchased underinsured motorist coverage, Indiana law requires insurers to offer this optional coverage up to your liability limits. Under IC 27-7-5-2.3, UIM covers the gap between the at-fault driver’s limits and your total damages, including reasonable rental car costs.
- Notify your insurer of a UIM claim promptly.
- Submit proof of rental expenses (receipts, rental agreement).
- Document the repair timeline for your vehicle.
2. Use Rental Reimbursement or Loss-of-Use Coverage in Your Own Policy
Review your collision or comprehensive policy for a rental reimbursement or loss-of-use endorsement. This first-party benefit typically pays a daily rental rate—often $25–$50 per day—while your vehicle is repaired. File directly with your insurer and provide:
- A copy of the rental agreement.
- Repair estimate showing the repair period.
- Daily rental rate and total cost breakdown.
3. Pursue a Direct Tort Claim for Loss-of-Use Damages
If you lack UIM or rental endorsement, you can still sue the at-fault driver directly. Under IC 34-51-2-1, you may recover “actual and reasonably necessary expenses,” which include reasonable rental costs or loss-of-use fees.
- Establish the period your vehicle was unavailable.
- Prove rental costs were reasonable and necessary.
- Attach rental receipts and repair invoices.
4. Consider Small Claims Court or Settlement Negotiations
If the at-fault driver has no further insurance, you can file in small claims court (up to $8,000) or negotiate a structured settlement. Keep thorough records:
- All rental agreements and invoices.
- Repair shop estimates and completion dates.
- Correspondence with insurers and the at-fault party.
Helpful Hints
- Review your UIM and rental reimbursement coverages immediately after an accident.
- Maintain a daily log of rental car use and costs.
- Obtain a clear repair timeline from your auto shop.
- Request an assignment of benefits from your insurer to pursue the at-fault driver directly.
- Consult an attorney if your damages exceed small claims limits or if coverage disputes arise.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.