An examination of Louisiana Law referred to as No Pay No Play and how it can effect you.
No Pay, No Play, refers to a Louisiana law that restricts the rights of a victim of an automobile accident to recover full damages if he is driving without the legally required insurance coverage.
To legally drive on the roads and highways in Louisiana you must have a valid drivers license and have automobile insurance coverage.
Under Louisiana's "no pay" "no play" insurance laws you may lose the right to recover for your losses suffered in an accident if you didn't carry automobile insurance on the vehicle you were driving, even if you were not at fault for the accident.
Under this statute (No Pay, No Play) victims of an accident without insurance can not recover the first $15,000 of bodily injury damages and the first $25,000 of property damages.
There are some important exceptions you need to be aware of:
You are only required to carry a minimum liability insurance;
Drivers from other states are not covered by the statute;
The law doesn't apply if the at fault driver broke certain laws before the crash, such as driving under the influence, fleeing the scene, or it tha at fault driver is in the commission of a felony.
if the car was legally parked
A passenger may recover for his damages, so long as he was not a co-owner of the uninsured vehicle.
The purpose of the law was to try to reduce the cost of insurance rates in the state. Louisiana has the second highest insurance premium rates in the country. To read La. R.S. 32:866, the statute governing No Pay, No Play in Louisiana click here
The statute reads, in part:
“[t]here shall be no recovery for the first fifteen thousand dollars of bodily injury and no recovery for the first twenty-five thousand dollars of property damage based on any cause or right of action arising out of a motor vehicle accident, for such injury or damages occasioned by an owner or operator of a motor vehicle involved in such accident who fails to own or maintain compulsory motor vehicle liability security.”