What is Louisiana’s “No Pay, No Play” Law?

Posted in Our Blog on January 22, 2019

Several factors may affect a victim’s right to compensation – the nature of the accident, the extent of an individual’s injuries, and the nature of an at-fault driver’s insurance coverage. What some Louisiana residents may not realize, however, is that state law does not automatically entitle them to compensation for injuries. The No Pay, No Play law affects a resident’s right to file a claim following an auto accident. If you or a loved one are having issues with the No Pay, No Play law following an automobile accident in Louisiana, contact the Law Office of John W. Redmann, LLC today.

The Louisiana Fault System of Insurance

Louisiana follows a traditional fault model of insurance regarding car accidents. When a person suffers an injury or property damage in a car accident in the state, he or she files a claim with the at-fault driver’s insurance company to obtain compensation for losses. However, under Louisiana’s No Pay, No Play law, each person must have coverage under a valid auto insurance policy to file a claim.

Furthermore, uninsured or underinsured drivers may be personally liable, and have to pay out of pocket for damages they cause to people or property, including car accidents.

However, failure to follow insurance law in Louisiana could also result in being unable to file a claim against an at-fault driver. The No Pay, No Play law went into effect in the state in 2011 and prevents uninsured or underinsured drivers from collecting the first $15,000 and $25,000 of bodily injury or property damages, respectively.

What is No Pay, No Play?

Louisiana’s insurance and tort laws are complex, but drivers should know a few important things about the statute.

• The law requires that residents meet the minimum for liability coverage required by the state. Louisiana does not require full or comprehensive coverage, just liability in the form of $15,000 for bodily injury per person ($30,000 per accident) and $25,000 in property damage.

• No Pay, No Play does not apply to out-of-state drivers with varying insurance requirements.

• The statute does not apply if a driver was guilty of breaking certain laws at the time of the accident. For example, the law does not apply to drunk driving, intentionally or recklessly causing an accident, fleeing the scene of an accident, or if the driver committed a felony.

No Pay, No Play in Louisiana

No Pay, No Play is becoming more common. Eleven states use a form of the statute. However, Louisiana is the only state that enacts this law regarding economic damages as well as non-economic damages. In the other ten jurisdictions, victims can still collect damages from medical bills and property damage, even if they are uninsured or underinsured at the time of the accident.

Under Louisiana law, however, uninsured and underinsured drivers are responsible for the first $15,000 of bodily injury and first $25,000 of property damage, even when another driver is at fault. Essentially, underinsured and uninsured drivers will be paying much of their bills out of pocket under Louisiana’s version of the law, making it the strictest in the nation.

Louisiana residents can protect their right to compensation by keeping their insurance policies up to date and in line with state-established minimums.

If you have been a victim of a car accident, even as an uninsured driver, the Law Office of John W. Redmann, LLC can help you explore your legal options. Contact us today to schedule a free case evaluation.