Which Insurance Covers an Indiana Crash Involving a Borrowed Car?

Key takeaways

• Indiana Code section 27-1-13-7 addresses coverage under the qualifying policy described in the statute.
• The statute refers to both express and implied permission.
• The statute does not decide whether a separate driver policy applies; that policy's text would have to be reviewed.
• Indiana's UM/UIM statutes contain separate coverage rules.
• Indiana's comparative-fault statutes address fault and damages.

What does the vehicle-policy statute say?

Indiana Code section 27-1-13-7 requires a qualifying motor-vehicle liability policy to insure the named insured and a person using the insured vehicle with the named insured's express or implied permission, subject to the policy's coverage and limits. See the official Indiana Code section 27-1-13-7^[1].

For broader collision guidance, see Delventhal Law Office's Fort Wayne car accident guide. A related article addresses a driver using someone else's car.

What about a separate driver policy?

Indiana Code section 27-1-13-7 does not decide whether a separate driver policy applies. That policy's text would have to be reviewed.

The official Indiana Department of Insurance claim tips^[2] recommend knowing what the policy says, keeping correspondence, and requesting the specific policy language supporting a denied claim.

What do the cited sources address?

Is the owner automatically liable?

Indiana Code section 27-1-13-7 states required policy coverage; it does not state that permission itself makes the owner liable for the driver's conduct.

In Manuel v. Kestler^[3], the Indiana Court of Appeals described negligent entrustment as a separate tort and stated its elements in the context of an allegedly incapacitated driver.

When can UM or UIM matter?

Indiana Code section 27-7-5-2 generally requires UM and UIM coverage in a newly issued auto liability policy unless the named insured rejects it in writing. The section contains additional provisions and exceptions. See Indiana Code section 27-7-5-2^[4].

Indiana Code section 27-7-5-4 defines an underinsured motor vehicle by comparing the bodily-injury liability limits available for payment to the injured insured with the injured insured's UIM limits. See Indiana Code section 27-7-5-4^[5].

How does comparative fault fit in?

For a claimant in an action governed by Indiana's comparative-fault chapter, damages are reduced in proportion to the claimant's fault. A claimant whose fault is greater than the fault of all persons whose fault is to be compared is barred from recovery. See Indiana Code sections 34-51-2-5 and 34-51-2-6^[6].

Those sections address fault and damages; they do not state whether a separate driver policy applies.

Which statutory deadlines require attention?

Indiana Code section 34-11-2-4 generally provides a two-year limitations period for an action for injury to person or character. See Indiana Code section 34-11-2-4^[7].

Indiana Code section 34-13-3-6 generally provides 270 days for notice of a claim against the state or a state agency, while section 34-13-3-8 generally provides 180 days for notice of a claim against a political subdivision. See Indiana Code chapter 34-13-3^[8] and the firm's government tort-claim notice guide.

What does IDOI recommend?

The IDOI claim tips recommend knowing what the policy says, keeping correspondence, and requesting the specific policy language supporting a denied claim.

Frequently Asked Questions

Does permission itself make the owner liable for the driver?

Indiana Code section 27-1-13-7 does not state that permission itself makes the owner liable for the driver's conduct.

Does Indiana Code section 27-1-13-7 decide whether a separate driver policy applies?

No. Indiana Code section 27-1-13-7 does not decide whether a separate driver policy applies. That policy's text would have to be reviewed.

How does Indiana Code define an underinsured motor vehicle?

Indiana Code section 27-7-5-4 compares the bodily-injury liability limits available for payment to the injured insured with the injured insured's UIM limits.

What does IDOI recommend when a claim is denied?

The IDOI claim tips recommend requesting the specific policy language supporting the denial.

If you were injured in a borrowed-car crash, you may request a free case evaluation.

This article provides general information and is not legal advice.

Sources

1. Indiana Code section 27-1-13-7 (iga.in.gov) ↩
2. Indiana Department of Insurance claim tips (secure.in.gov) ↩
3. Manuel v. Kestler (public.courts.in.gov) ↩
4. Indiana Code section 27-7-5-2 (iga.in.gov) ↩
5. Indiana Code section 27-7-5-4 (iga.in.gov) ↩
6. Indiana Code sections 34-51-2-5 and 34-51-2-6 (iga.in.gov) ↩
7. Indiana Code section 34-11-2-4 (iga.in.gov) ↩
8. Indiana Code chapter 34-13-3 (iga.in.gov) ↩