If you’ve been in a car accident in Louisiana, you might be surprised to learn about the state’s “No Pay, No Play” statute. This law limits the damages that uninsured drivers can recover, even if the other driver is at fault. This blog post will explain what this means for you, and how to avoid falling into a financially precarious situation.
What is the No Pay, No Play Law?
The No Pay, No Play statute (R.S. 32:866), enacted in 2011, was designed to encourage drivers to purchase car insurance and reduce the number of uninsured drivers on the road. Here’s how it works: if you find yourself in an accident where the other driver is completely at fault, but your insurance has lapsed, you could be left without compensation for your injuries and damages.
Key Provisions of the No Pay, No Play Law
- Bodily Injury Damages: Uninsured drivers cannot recover the first $15,000 in bodily injury damages. You will receive nothing if your claim is valued at $15,000 or less. If your claim exceeds $15,000, you can only recover amounts above that threshold.
- Property Damage: Similarly, uninsured drivers cannot recover the first $25,000 of property damage. This means you will need to cover the cost of repairs out of pocket.
- Exceptions: There are exceptions to this law. If the other driver intentionally caused the accident, fled the scene (hit and run), or was committing a felony or driving under the influence, the No Pay, No Play rule may not apply.
- Passenger Rights: Importantly, the No Pay, No Play statute does not apply to passengers who do not own a vehicle, as they are not responsible for maintaining insurance.
Avoiding Financial Pitfalls
So, how can you ensure you do not get caught in this situation? Here are some tips:
- Keep Your Insurance Current: Ensure your auto insurance coverage remains in force. Regularly check in with your insurance agent, especially after moving or changing your address.
- Use Autopay: Setting up autopay for your premiums can help prevent lapses due to missed payments.
What Happens If You Are Injured?
The No Pay, No Play law significantly impacts your claim if you are involved in an accident and your insurance has lapsed. For example, if you incur $100,000 in damages but your insurance lapsed before the accident, you may only recover $85,000, assuming the at-fault driver has adequate coverage.
Contact an Experienced Accident Attorney Today
Navigating the complexities of car accident claims can be daunting, especially when dealing with insurance companies. Our car accident attorney understands these challenges and we know the insurance company’s strategies.
It’s in your best interest to consult an attorney before you discuss your claim with the other party’s insurance company. Insurance adjusters work for the insurance provider. An adjuster’s goal is to protect the company by denying your claim or paying as little as possible to settle your claim. The adjuster is not working for you.
When you choose to work with Pierce & Shows law firm, there are no out-of-pocket expenses. We operate on a contingency basis, meaning you do not pay us anything if we do not win your case.
If you’ve suffered an injury through no fault and feel overwhelmed by the insurance process, schedule a consultation with us today. Let us help you get the justice and compensation you deserve.
Remember, once you settle your claim, you cannot reopen the claim even if you discover additional damages or losses.