Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
In Indiana, insured drivers often share a combined single-limit policy covering multiple at-fault parties. When medical bills, property damage, and other expenses exceed that policy limit, injured claimants can pursue additional recovery in two ways: by suing individual at-fault parties for amounts beyond the exhausted limit and by asserting joint and several liability for economic losses. Indiana law distinguishes between economic and noneconomic damages in multi-tortfeasor cases.
1. Understand Combined Single-Limit Policies
A combined single-limit (CSL) policy caps the insurer’s payment for all covered losses from an accident, regardless of how many insureds caused it. If two drivers under the same CSL policy cause $150,000 in losses but the policy limit is $100,000, you exhaust the $100,000. To recover the remaining $50,000, you must pursue the individual assets of at-fault drivers personally or look to other available coverages.
2. Leverage Joint and Several Liability for Economic Loss
Under Indiana’s Comparative Fault Act, you may hold any solvent tortfeasor fully responsible for all economic losses (medical bills, lost wages, property damage) regardless of each party’s percentage of fault. See Indiana Code §34-51-2-10: IC 34-51-2-10. This allows you to recover the unpaid balance from the wealthiest or most collectable defendant.
3. Know the Limits on Noneconomic Damages
Indiana law limits noneconomic damages (pain and suffering) to the share of fault assigned to each defendant. You cannot shift another’s portion to a joint tortfeasor. For noneconomic loss, liability is several only. See IC 34-51-2-10.
4. File Suit Before the Statute of Limitations Expires
Most personal injury and property damage claims must be filed within two years of the accident date. See Indiana Code §34-11-2-4(1): IC 34-11-2-4(1). Timely filing preserves your right to recover unpaid losses from both insurers and at-fault individuals.
5. Consider a Bad Faith Claim
If the insurer acted unreasonably in handling your claim or failed to pay undisputed amounts, you may pursue a bad faith action under Indiana Code §27-4-1-1 et seq. See: IC 27-4-1-1. Successful bad faith claims can yield extra-contractual damages beyond policy limits.
Helpful Hints
- Identify all at-fault parties and list their respective coverages early.
- Request liability and coverage information through discovery (interrogatories, depositions).
- Pursue the insurer’s full limit before suing defendants personally.
- When naming defendants, specify economic and noneconomic damages separately in complaints.
- Evaluate each defendant’s assets to determine the optimal target for joint and several recovery.
- Consult local court rules on service of process—missing service deadlines can cost recovery.
- Keep detailed records of all medical bills, repair estimates, and communication with insurers.