How Insurance Companies Use Indiana’s Tort Reform Laws to Pay Less for Your Injuries

If you’ve been injured in Indiana, you might be shocked at how little the insurance company offers to settle your claim — even when your injuries are serious and life-changing.

That’s not an accident. Insurance companies are national corporations that know Indiana’s tort reform laws make it easier — and cheaper — to settle claims here. Instead of offering fair compensation based on what you’ve lost, they use Indiana law to drive down the value of your injury.

Here’s how they do it:

Indiana’s Tort Reform Laws Favor Insurance Companies

Over the years, Indiana lawmakers have passed several “tort reform” laws that protect corporations and insurance companies at the expense of injured people. These include:

• Caps on damages: In cases like medical malpractice and some wrongful death claims, there are strict limits on how much an injured person can recover.

• Limits on punitive damages: Even if a jury wants to punish a company for gross misconduct, Indiana law caps the amount — and a significant portion goes to the State, not the victim.

• Short statutes of limitations: Victims are forced to file lawsuits quickly, often before the full extent of their injuries is even known.

These laws make Indiana a “low-value” state for claims. Insurance companies know it — and use it to their advantage.

Indiana Lets Insurance Companies Devalue Medical Expenses

Another major problem for Indiana injury victims is how courts treat medical expenses.

Under Indiana law, insurance companies can present to the jury the amount of medical expenses that were actually paid — not the amount that was billed. This means that if your medical providers billed $100,000 for your care but your health insurance company negotiated it down to $10,000, the jury sees the $10,000 and the insurance company uses that to devalue the case.

Insurance companies seize on this rule during settlement negotiations. They don’t look at the full value of your medical care — they look at what was paid after insurance adjustments and write-offs, and they devalue your entire injury claim accordingly.

Even if you required extensive, expensive treatment, the insurer will argue that your damages are “low” and you weren’t hurt that badly simply because your health insurance company got a discount. That’s not fair — but under Indiana law, it’s allowed.

The Reality: Indiana Victims Are Treated as "Discount Claims"

Insurance companies don’t just look at your injuries — they look at how much they have to pay under Indiana law. And because Indiana’s tort reform laws and medical expense rules make payouts lower here than in other states, national insurers routinely:

• Lowball settlement offers to Indiana victims.

• Delay and deny claims hoping you’ll give up or settle cheap.

• Value serious injuries at a fraction of what they would be worth elsewhere.

It’s simple math for them — and a huge injustice for real people who are hurting.

You Deserve Full Compensation

The fact that Indiana laws favor insurance companies doesn’t mean you have to accept their lowball offers. At Guenin Law Office, we know you deserve fair treatment, full compensation, and real justice and we work to help you obtain it.