Understanding Louisiana’s “No Pay, No Play” Law

A New Orleans attorney explains what injured crash victims need to know

When you’ve been hurt in a Louisiana car accident, life can change quickly. Medical expenses for treatment can add up fast, leading to financial stress. If a negligent driver caused the crash, you deserve financial compensation for your medical bills and other related damages. However, there are many factors that can impact the amount of money you can recover. One potential factor is the state’s “No Pay, No Play” law.

Louisiana is an at-fault state for car accidents. That means the driver who is determined to be at fault for causing the crash is financially responsible for any resulting damages. The at-fault driver’s insurance company typically pays for the damages, including medical expenses, property damage, and other related costs.

Injured parties have the following options to seek compensation after a car accident in Louisiana:

File a claim with their own insurance company: If the victim has collision coverage or other applicable insurance, they can initially file a claim with their own insurer, who may then seek reimbursement from the at-fault driver’s insurance company.
File a claim with the at-fault driver’s insurance company: The injured party can file a third-party claim directly with the at-fault driver’s insurer to recover compensation for damages.
File a personal injury lawsuit: If a fair settlement cannot be reached with the insurance company, the injured party has the right to file a lawsuit against the at-fault driver to seek compensation for their losses.

All drivers in the state are required to carry insurance. But what happens if you don’t have car insurance and are involved in a crash?

Under state law, if you are uninsured and are injured in an accident caused by another driver, the amount of compensation you can recover is limited.

What is the “No Pay, No Play” law?

This legislation applies to all drivers involved in car accidents within the state. The law, formally known as Louisiana Revised Statute § 32:866, is designed to encourage all drivers to maintain the minimum required car insurance coverage.

Enacted in 1997, the “No Pay, No Play” law essentially penalizes drivers who choose not to carry the minimum liability insurance required by the state. Under this law, if an uninsured driver is involved in an accident, they are prohibited from recovering the first $15,000 of bodily injury damages and the first $25,000 of property damage – even if the other driver is 100% at fault for the accident. This means that uninsured drivers cannot seek compensation for these amounts from the at-fault party or their insurance company, effectively reducing their potential recovery by these amounts.

For example, if an uninsured driver is injured in an accident and has $20,000 in medical expenses, they would only be able to seek recovery for $5,000 of those expenses under the “No Pay, No Play” law. Similarly, if their vehicle sustains $30,000 in damage, they would only be able to seek $5,000 in property damage compensation.

Why does Louisiana have this law?

The primary purpose of the “No Pay, No Play” law is to encourage all drivers to comply with Louisiana’s mandatory car insurance requirements. By limiting the compensation that uninsured drivers can recover, the law creates a strong financial incentive for drivers to have coverage. The idea is that if drivers know they will be penalized financially in the event of an accident, they will be more likely to buy and maintain insurance.

To avoid the penalties imposed by the “No Pay, No Play” law, drivers in Louisiana must carry at least the minimum required liability insurance coverage. Minimum requirements are:

$15,000 for bodily injury or death of one person in an accident
$30,000 for bodily injury or death of more than one person in an accident
$25,000 for property damage per accident

These minimums are often referred to as 15/30/25 coverage. While carrying only the minimum required coverage allows you to meet the state’s legal requirements, many drivers choose to carry higher limits or additional types of coverage, such as comprehensive or collision insurance, to provide greater financial protection.

Exceptions to the “No Pay, No Play” law

There are some exceptions to the “No Pay, No Play” law where an uninsured driver may still be able to recover damages. These exceptions include:

Parked vehicles – If your uninsured vehicle was legally parked at the time of the accident, the “No Pay, No Play” law does not apply, and you may be able to recover damages.
Intoxicated drivers – If the at-fault driver was convicted of driving while intoxicated (DWI) in connection with the accident, the uninsured driver may be exempt from the “No Pay, No Play” penalties.
Intentional acts – If the at-fault driver intentionally caused the accident, the “No Pay, No Play” law may not apply.
Hit-and-run accidents – The law does not apply if the at-fault driver leaves the scene of the accident.
Other special circumstances – There may be other specific circumstances under which the “No Pay, No Play” law might not apply. Consulting with a car accident lawyer is the best way to determine if your situation falls under one of these exceptions.

For drivers who are insured, the “No Pay, No Play” law serves as a reminder of the importance of maintaining coverage. For those who are uninsured, it highlights the potential financial risks of driving without adequate insurance. After a car accident, an uninsured driver subject to the law may find that their ability to recover damages is significantly limited, and they would be financially responsible for most of those damages.

What should I do after an accident if I don’t have insurance?

If you’re uninsured and involved in a car accident in Louisiana, the situation can be challenging. But there are steps you can take to address your health and safety, as well as your rights.

Call the police – Officers who respond to the scene can make sure everyone is safe. They will also conduct an initial investigation and complete an official accident report. When speaking with the police, be honest about what happened, but avoid admitting fault. Stick to the facts.
Get medical attention – See a doctor, even if you seem to feel fine. Some injuries have delayed symptoms. A doctor can diagnose your injuries, begin treatment, and provide documentation that you were injured.
Gather evidence – Take photos or videos of the accident scene, including vehicle damage, skid marks, traffic signals, and any visible injuries. This evidence can be crucial if there are disputes about what happened.
Exchange information – Get the contact and insurance information of the other driver(s) involved in the accident. Also, collect contact information from any witnesses.
Talk to a lawyer – Getting legal advice as soon as possible is important. An attorney can help you understand your rights and options, especially considering the restrictions imposed by the “No Pay, No Play” law.

After an accident, it’s important to have someone you can trust

If you are injured in an accident in Louisiana, the “No Pay, No Play” law might affect your claim if you are uninsured. An experienced New Orleans car accident attorney can help you navigate the claims process, understand your rights, and determine the best course of action for recovering compensation.

At The Law Offices of John S. Williams, LLC, we understand how injuries from an accident can affect your life. Attorney John S. Williams is dedicated to helping you find answers and solutions. He is ready to handle your injury claim from start to finish and will fight for the best possible outcome.

Learn more about how our firm can help. Contact us today to schedule a free consultation.

Click here to download a printable PDF of this article, “Understanding Louisiana’s ‘No Pay, No Play’ Law.”