Almost every state requires that drivers carry insurance on vehicles they own. The reason is that if a person causes an accident, they are responsible for paying bodily injury and property damage expenses for the other person(s) involved in the accident. When a driver has insurance, the company steps in to cover costs based on the limits set in the insurance contract.
However, if a driver does not have insurance, they may be responsible for paying the expenses out of their own pocket. Often, the expenses can be so high that it is difficult for an individual to cover the costs on their own. In such cases, the insured driver’s insurance may cover their customer’s expenses but might not get reimbursed from the uninsured driver. Premiums increase to offset the costs the company must pay.
The No Pay, No Play Law
To combat the cost of high insurance premiums, Louisiana passed the compulsory vehicle security statute L.a. R.S. 32:866 in 2011. Commonly known as the “no pay, no play” law, this statute limits an uninsured driver’s ability to pursue a claim against an at-fault driver’s insurance company after an accident. If a driver does not have insurance, they cannot claim the first $15,000 of bodily injury damages and the first $25,000 of property damage. That means the uninsured driver is responsible for paying up to those amounts on their own.
A driver needs to maintain only the state-required minimum liability insurance to meet the stipulations of this law. As long as the driver has coverage before an accident, they can pursue a claim against the at-fault driver.
Exceptions to the Law
Some exceptions to the no pay, no play law exist, and under the following circumstances, an uninsured driver can file a claim:
- The at-fault driver was intoxicated, fled the scene, caused the accident on purpose, or committed a felony at the time of the accident
- The at-fault driver collided with a parked vehicle
- The driver of the vehicle that was hit was from out of state
We Fight to Protect Your Rights
With over 25 years of experience, our Bossier City car accident attorney understands the complexities surrounding the no pay, no play law. At Joseph A. Gregorio, A Professional Law Firm, we can provide you with superior legal guidance for your case and work toward getting favorable compensation for you. We also work on a contingency-fee basis, which means you will not pay legal fees unless we recover compensation on your behalf.
If you’ve been injured in an accident caused by a negligent driver, call Joseph A. Gregorio, A Professional Law Firm at (318) 719-7515">(318) 719-7515 to discuss your case. You can also fill out an online contact form to reach our team.