What Are No-Pay, No-Play Car Insurance Laws?

For example, there were recent changes in no-pay, no-play laws in Louisiana. The new law means you can’t sue for your damaged property or medical costs for the first $100,000 in expenses if you get into an accident and are uninsured. That means if your medical bills are $99,000, you can’t recover any of those costs. You’re also unable to sue for noneconomic damages. 

With the new penalty limitation, many uninsured drivers struggle to recoup any losses. This can cause a trickle-down effect and shift the burden onto health insurers or the Medicaid system to pay for the injured uninsured drivers, according to Wild-Donde’Ville. 

The only instances when the Louisiana no-pay, no-play law might be waived is if the insured, at-fault driver breaks the law, like if they were driving under the influence, intentionally caused the accident or fled the accident scene. 

What damages can uninsured drivers not recover?

In most no-pay, no-play states, you cannot recover noneconomic losses from the at-fault driver if you get into an accident while uninsured. That means you cannot sue the at-fault party or their insurance company for nontangible losses such as:

• Mental anguish, such as depression or anxiety
• Pain and suffering, such as chronic, ongoing back pain, or emotional suffering, like PTSD
• Loss of enjoyment of life, like if you can no longer enjoy your hobbies and previously favorite activities

Stricter states, like Louisiana and New Jersey, also limit suing for damaged property and medical expenses if you’re uninsured.

Which states have no-pay, no-play laws?

Nearly a dozen states have some form of no-pay, no-play laws.