The high rate of auto insurance in Louisiana has been a problem for years for drivers, even for those who are properly insured. In 2011, the state passed a ‘No Pay, No Play' law. The law requires all drivers to not only have a valid license, but also be properly insured if they wish to drive legally on the roads of Louisiana. The statute passed in 2011 prevents drivers who are uninsured or under insured from collecting on an insurance claim if they are the victim of a motor vehicle accident. Let's take a look at the ‘No Pay, No Play' law.
What is the Statute?
According to Louisiana, the law states the following:
“[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.”
Five Exceptions to the Law
The five exceptions to the ‘No Pay, No Play' law in Louisiana include the following:
- The statute requires that drivers only have minimum liability coverage, not comprehensive or full coverage.
- The statute does not apply to drivers from other states involved in crashes who have different insurance requirements.
- The statute does not take effect if the driver who caused the accident did so while breaking a law, such as driving while intoxicated, leaving the scene of the accident, intentionally causing the crash or if the driver committed a felony during the accident.
- The statute does not cover vehicles that are parked. If the car was parked when hit you are able to file a claim against the striking driver and it doesn't matter if you have coverage or not.
- If a passenger is injured, he or she can file a claim, as the law does not apply to them unless they happen to be the owner or the co-owner of the uninsured vehicle.
Why ‘No Pay, No Play?'
You might be wondering why Louisiana had to establish a ‘No Pay, No Play' statute back in 2011. The main reason was that the cost of car insurance for legal drivers was getting to be too high. Why? Insurance companies had to raise rates to cover the large number of drivers in the state who were driving uninsured or under insured. When an insured driver is involved in an accident with an uninsured driver, insurance companies lose a large amount of money. The state countered this issue of rising insurance costs by instituting this statute.
Speak to an Attorney after an Accident
Did you or a loved one suffer an injury in a car accident? Was the other driver uninsured or under insured? Are you uninsured or under insured? Either way, you should speak to an attorney about the injuries you suffered and how you can move forward and seek compensation. Contact the Schwartz Law Firm in New Orleans at 504-837-2263 or the office in Baton Rouge at 225-766-6775 today to schedule a consultation.