In this article, the team of experienced personal injury attorneys at Breaux Law Firm break down Louisiana’s “No Pay, No Play” law for car accidents. We explain how the law limits uninsured drivers, five exceptions, and commonly asked questions about this law.
Car accidents can be stressful, traumatic, and costly, often leading to significant financial burdens for those involved. In an effort to address these concerns and encourage responsible driving habits, Louisiana implemented the “No Pay, No Play” (LA. R.S. 32:866) law, which has been in effect since 2011. This law places limitations on uninsured drivers’ ability to recover damages after a car accident, while also allowing for five specific exceptions to the rule.
The Legal Requirement to Have Auto Insurance
Every driver operating a vehicle in the US is legally required to have auto insurance. In Louisiana, drivers must maintain compulsory motor vehicle liability coverage on any automobile they own. Under Louisiana law, each vehicle is required to have coverage for up to $15,000 in bodily injury to one person, $30,000 in bodily injury to more than one person in a single accident, and $25,000 in damage to someone else’s vehicle or property.
This liability coverage is required by law, but other types of insurance are optional, such as medical payments coverage, uninsured/underinsured motorist coverage, comprehensive coverage, and collision coverage. Uninsured motorist coverage is not required in the state of Louisiana but is highly recommended, especially in urban areas like Greater New Orleans or Baton Rouge.
A person driving an uninsured car anywhere in the US is taking a great risk. A valid auto insurance policy is meant to protect you and the drivers you share the road with.
Understanding Louisiana’s “No Pay, No Play” Law
To help protect Louisiana drivers and visitors to New Orleans who may use rental cars, the Louisiana legislature passed the “No Pay, No Play” statute (La. R.S. 32:866) in 2011.
The “No Pay, No Play” law restricts the recovery of certain damages by drivers who are involved in car accidents but who do not have the legally required minimum liability insurance. Under this law, uninsured drivers cannot recover the first $15,000 in bodily injury damages and the first $25,000 in property damages, regardless of the severity of their injuries or the extent of the property damage.
This means that if an uninsured driver causes an accident, that driver is then held financially responsible for the first $15,000 in bodily injury damages and the first $25,000 in property damages incurred by other parties involved.
“No Pay, No Play” laws are unique. It is a recognized and enforced Louisiana law, but not all Louisianans are aware of it. Only 10 other states currently have this type of law: Alaska, California, Indiana, Iowa, Kansas, Michigan, New Jersey, North Dakota, Oklahoma, and Oregon.
The primary purpose of the “No Pay, No Play” law is to encourage drivers to maintain auto insurance coverage. By limiting the recovery rights of uninsured drivers, Louisiana hopes to reduce the number of individuals who drive without insurance, as well as the associated financial risks posed to responsible drivers who have purchased an insurance policy.
Still, according to data gathered by the Insurance Information Institute in 2019, roughly 11.7% of drivers in Louisiana were uninsured. The number of uninsured drivers in Louisiana is roughly average in comparison to all states, ranking at #27 in the same study.
The Five Exceptions to the Rule
While “No Pay, No Play” is strictly enforced, there are exceptions to the Louisiana law that allow uninsured drivers to bypass these restrictions and recover damages after an accident. The following are the five exceptions to the “No Pay, No Play” rule:
- Passengers: The “No Pay, No Play” law only applies to owners and operators of an uninsured motor vehicle. As a passenger, as long as you’re not the owner, “No Pay, No Play” will not apply to you.
- Parked Vehicle: If a person was not driving at the time of the accident and their vehicle was legally parked at the time, they are considered exempt from the “No Pay, No Play” law.
- Hit-and-Run Accidents: If you were involved in a hit-and-run accident but the responsible party is successfully identified or located, you can still seek compensation, even if you were uninsured at the time. This exception ensures that victims of hit-and-run accidents are not unfairly penalized.
- Out-of-State Accident: A Louisiana resident who is uninsured and is involved in an accident in another state can still recover damages without the “No Pay, No Play” limitations applying. However, this exception does not extend to out-of-state residents who are involved in accidents within Louisiana.
- Intoxicated Driver: If the at-fault driver was under the influence of drugs or alcohol at the time of the accident, the “No Pay, No Play” limitations do not apply. This exception recognizes the seriousness of impaired driving and its potential to cause severe harm.
In a situation where a driver does not have insurance, is involved in an accident, and believes one of these exceptions applies to their case, it is crucial that they seek legal advice and representation. A skilled personal injury attorney, like the team at Breaux Law, may still be able to help a driver recover damages under the appropriate exception, even if that driver doesn’t have insurance.
Consequences of Non-Compliance with the Law
The consequences of failing to comply with the “No Pay, No Play” law are severe. An uninsured driver who causes a motor vehicle accident could be held personally responsible for the first $15,000 in bodily injury damages and the first $25,000 in property damages. These expenses can be financially crippling, potentially leading to significant personal liability and legal consequences.
Additionally, the license and registration of the uninsured driver may be suspended for a minimum of one year, and they may be required to pay reinstatement fees and provide proof of insurance for three years following the suspension. Furthermore, the Louisiana Department of Public Safety and Corrections may require them to complete a driver improvement program.
FAQs About Louisiana’s “No Pay, No Play” Law
What happens if I have no insurance and the other driver was at fault?
As we discussed in our article on auto accidents without insurance, “If you are not at fault in an accident, but you are uninsured, you will encounter restrictions on what you can recover against that driver. Louisiana’s “No Play, No Pay” law prohibits uninsured motorists from collecting the first $25,000 in property damages and the first $15,000 in personal injuries.” If you are hurt in a crash caused by someone else but you don’t have auto insurance, you can still get compensation in some circumstances.
Reach out to the law office of Breaux Law Firm to discuss your case and learn more about your possible compensation. Each case is different, and our experienced personal injury attorneys can help walk you through the legal process.
What is the “No Pay, No Play” Statute of Limitations in Louisiana?
The statute of limitations in Louisiana is one year. What this means is that you have one year from the date of the accident to seek reimbursement. After that one year has passed, you can no longer file a claim to receive compensation for damages you sustained in that accident. So whether or not your case falls under the “No Pay, No Play” law, you still need to file your claim or work with a personal injury attorney within that one year timeframe.
Contact Breaux Law Firm Today for Your Personal Injury in Louisiana
Louisiana’s “No Pay, No Play” law encourages responsible driving by placing limitations on uninsured drivers’ ability to recover damages after a car accident. While the law is strict, there are five exceptions that provide some relief for uninsured drivers in specific circumstances. Car accidents can cause thousands of dollars of property damage and bodily injury, and no recovery amount can make up for the emotional trauma and suffering in the aftermath of a car wreck.
If you or a loved one have been injured in an accident and you would like to understand how Louisiana’s “No Pay, No Play” law connects to your case, reach out to Breaux Law Firm for your free consultation. A car accident lawyer understands the different insurance requirements between different states, the ins and outs of working with insurance companies, and the exceptions to Louisiana’s laws. And at Breaux Law, we make it our mission to treat each client like part of our family.
Been in a car accident in Louisiana? Call Breaux Law Firm. Our reputation speaks for itself. We’re ready to fight for you.
