Is underinsured motorist coverage required by law?

Underinsured motorist coverage is not required by law in Indiana. This coverage, while beneficial for protecting drivers against the financial burden of being in an accident with a driver who does not have sufficient insurance, is considered optional. This means that drivers can choose to include this coverage in their auto insurance policy or opt out of it if they prefer.

The significance of this optional status allows drivers more flexibility in tailoring their insurance coverage to fit their financial needs and risk tolerance. It is essential for drivers to understand the implications of not having this coverage, as it could leave them vulnerable to high out-of-pocket expenses if they are involved in an accident with an underinsured motorist.

In contrast to the other options, none of which reflect the current legal requirements in Indiana, this clarification highlights that while underinsured motorist coverage is beneficial, it is ultimately up to the individual driver to decide whether to include it in their insurance policy.