Indiana car insurance operates under a tort system. This means that after an accident, an investigation is conducted to determine which driver is at fault. The driver responsible for the collision is also responsible for paying compensation to the occupants of the other vehicle who were injured as well as paying for the cost of repairs of property damaged in the accident.
Car insurance is bought to provide financial protection to drivers. Instead of paying for these damages personally, the at-fault driver’s car insurance company pays for them. A person who is responsible for causing damage in an accident who does not have insurance is not only breaking the law, but they may be faced with having to sell off their hard-earned assets to pay for the damages they caused.
The tort system allows accident victims to sue the at-fault driver for damages after the accident. They can recover the cost of medical bills, rehabilitation services and other expenses related to the accident.
If the at-fault driver has insurance, the company will take charge of retaining an attorney on the policyholder’s behalf. He or she will attempt to negotiate a settlement of the claim. If the matter cannot be settled out of court, the attorney will represent the policyholder at trial. The cost of paying car insurance premiums is money well spent when you consider the level of protection they buy for a policyholder.