What is Louisiana No Pay No Play Law?
No Pay, No Play, refers to a Louisiana law restricting the rights of a victim of an automobile accident to recover full damages. It a person is driving an automobile without the legally required insurance coverage his right to recover damages is limited.
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.
Purpose of No Pay No Play Law
The purpose of the law is to reduce the cost of insurance rates in the state. The theory is the limitation on recovery will encourage more driver to buy insurance coverage.
More insured drivers results in a lower number of uninsured drivers on the roads. The less uninsured drivers reduce the cost automobile insurance companies spend covering accidents caused by uninsured drivers. The lawmakers hope the savings for the insurance companies “trickle down” to consumers.
Currently, Louisiana has the second highest insurance premium rates in the country. To check the current statute 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.”
If you are involved in an Automobile Accident Contact Sonja Bradley your attorney in Hammond Louisiana, Denham Springs, Louisiana, Ponchatoula Louisiana, Livingston Louisiana, Albany Louisiana, Amite Louisiana, Walker Louisiana and surrounding areas to ensure your personal injury case is handled right.
Check out our article on steps to follow when you have been in a car accident.
The following is the Louisiana Revised Statute 32:866. It is essential to visit the website to check the current status of the law for any updates.
§866. Compulsory motor vehicle liability security; failure to comply; limitation of damages
A.(1) There 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.
(2) For purposes of this Section, the meaning of “bodily injury” and “property damage” is governed by the applicable motor vehicle liability insurance policy or, in the event of security other than an insurance policy, the meaning of such terms is that which is commonly ascribed thereto.
(3)(a) The limitation of recovery provisions of this Subsection do not apply if the driver of the other vehicle:
(i) Is cited for a violation of R.S. 14:98 as a result of the accident and is subsequently convicted of or pleads nolo contendere to such offense.
(ii) Intentionally causes the accident.
(iii) Flees from the scene of the accident.
(iv) At the time of the accident, is in furtherance of the commission of a felony offense under the law.
(b) The limitation of recovery provisions of this Subsection do not apply if at the time of the accident, the other vehicle is not being operated and the vehicle is not in violation of the provisions of Chapter 1 of this Title.
B. Each person who is involved in an accident in which the other motor vehicle was not covered by compulsory motor vehicle liability security and who is found to be liable for damages to the owner or operator of the other motor vehicle may assert as an affirmative defense the limitation of recovery provisions of Subsection A of this Section.
C. If the owner of a motor vehicle, who fails to own or maintain compulsory motor vehicle liability security, institutes an action to recover damages in any amount, regardless of whether such owner or operator is at fault, and is awarded an amount equal to or less than the minimum amount of compulsory motor vehicle liability security, then such owner or operator shall be assessed and held liable for all court costs incurred by all parties to the action.
D. Each person who applies for a driver’s license, registers a motor vehicle, or operates or owns a motor vehicle in this state is deemed to have given his consent to be subject to and governed by the provisions of this Section. All persons who apply for the issuance or renewal of a driver’s license, motor vehicle title, or motor vehicle registration shall sign a declaration on a form developed by the Department of Public Safety and Corrections pursuant to rule and regulation that the person acknowledges and gives consent to the requirements and provisions of this Section and that the person will comply with all provisions of this Section and the Motor Vehicle Safety Responsibility Law. Proof of whether the person obtained or signed such declaration is irrelevant to the application of this Section.
E. Nothing in this Section shall preclude a passenger in a vehicle from asserting a claim to recover damages for injury, death, or loss which he occasioned, in whole or in part, by the negligence of another person arising out of the operation or use of a motor vehicle. This Subsection shall not apply to a passenger who is also the owner of the uninsured motor vehicle involved in the accident.
F.(1) Notwithstanding any provision of law to the contrary, no insurer shall lose any rights of subrogation for claims paid under the applicable insurance policy for the recovery of any sum in excess of the first fifteen thousand dollars of bodily injury and the first twenty-five thousand dollars of property damages.
(2) In claims where no suit is filed, the claimant’s insurer shall have all rights to recover any amount paid by the claimant’s insurer on behalf of the insured for the recovery of any sum in excess of the first fifteen thousand dollars of bodily injury and the first twenty-five thousand dollars of property damages.
G.(1) Except for newly acquired vehicles added to a policy subject to the policy terms, the issuance, change, or adjustment of any motor vehicle liability security or insurance policy subsequent to a motor vehicle accident, without proof of coverage having been bound prior to such motor vehicle accident, shall not effectuate any of the following:
(a) The recovery for injury or damages that are otherwise prohibited under this Section.
(b) The defeat of any affirmative defense otherwise allowed under this Section.
(c) The avoidance of liability for court costs otherwise required under this Section.
(2) Reinstatement provisions of a policy during the premium payment grace period specified in the policy shall not be invalidated by the provisions of this Section.
H. The provisions of this Part shall not apply to any vehicle which is legally parked at the time of the accident.
Acts 1997, No. 1476, §4, eff. Sept. 6, 1998; Acts 1999, No. 1085, §1, eff. Jan. 1, 2000; Acts 2003, No. 532, §1; Acts 2008, No. 921, §1, eff. Jan. 1, 2010; Acts 2014, No. 149, §1.
NOTE: See Acts 1997, No. 1476, §5(D)(2). The rate reduction day was the date on which the judgment in the lawsuit became final, May 8, 1998. Sections 2 through 4 became effective 120 days thereafter, Sept. 6, 1998.