Car insurance laws vary throughout the United States, specifically regarding
minimum requirements and the consequences of not carrying insurance. In
the state of Louisiana, drivers are required to carry a minimum bodily
liability coverage $15,000 per person and $30,000 per accident, and $25,000
in property damage liability coverage. While these limits are similar
to many of those found in other states, Louisiana is unique due to its
“No Pay, No Play” law.
Under this rule, uninsured drivers who are injured in
car accidents caused by another driver’s negligence are unable to collect the
first $15,000 in damages for bodily injury or the first $25,000 for property
damage. In other words, drivers who do not pay into the system are unable
to reap its benefits. Likewise, two uninsured motorists who collide with
each other are unable to pursue legal action against each other under this law.
The “No Pay, No Play” rule was implemented as a means of encouraging
more drivers to purchase auto insurance. According to DMV.org, more than
10 percent of Louisiana motorists are uninsured, contributing to overall
high premiums for car insurance throughout the state.
When Does “No Pay No Play” Not Apply?
There are certain limitations to the “No Pay, No Play” rule.
Drivers are only required to purchase liability insurance rather than
full coverage. If a driver has a state compliant auto liability coverage,
they may file a claim against the at-fault driver’s insurance provider.
Next, the rule does not apply to parked vehicles. If a driver’s
vehicle was parked at the time of a collision, they may file a claim against
the at-fault driver’s insurance even if they do not have insurance
Uninsured drivers from other states are also unaffected by this rule, though
they may still face penalties or a possible license suspension in their
home state if they are caught driving without insurance in Louisiana.
Finally, “No Pay, No Play” does not apply if the at-fault
driver was intoxicated or fled the scene of the accident.
If you have been injured in a collision and are unsure if “No Pay,
No Play” applies to your collision, contact Duck Law Firm, LLC.
Having recovered millions on behalf of injured motorists throughout Louisiana,
our Lafayette car accident lawyer can evaluate your legal options and
help you pursue the most appropriate course of action.
Call (337) 660-2699 or
schedule a no-cost case review today to get started towards filing a claim.