Louisiana’s “No Pay, No Play” Law

Insurance companies always seem to get a bad rap when it comes to rates, but did you know that statistics show 12.6% of Louisiana drivers do not have automobile insurance?
Nine times out of ten, these are the same people who jump on the law suit wagon, demanding to be compensated for their bodily injuries and property damages to their vehicle.

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I’m sure Louisiana is not the only state with these types of statistics, but the average law abiding citizen who does carry insurance as required by the state, gets a bit frustrated over the fact that their insurance rates are through the roof due to no fault of his/her own.

For this reason, Louisiana, along with about ten other states has implemented a “No Pay, No Play” law.

This law states that if you are involved in an accident and you are not at fault but do not have liability insurance, the other parties’ insurance carrier DOES NOT have to pay the state’s minimum liability limits (first $15,000 of bodily injuries and first $25,000 for property damages).

What does this mean exactly?

If you are in a not-at-fault accident but do not have insurance, the company insuring the at fault driver does not have to pay for your bodily injuries if they are less than $15,000 nor do they have to repair or replace your vehicle if damages are less than $25,000.

Injuries and damages more? If the at fault driver has minimum state limits (15,000 per person/30,000 per accident/25, 000 property damage) you are out of luck.

Suppose you’re the injured party who has state mandated liability limits of auto insurance and the at fault driver has none?

Unless you have Comprehensive, Collision, Medical Payments, and/or Uninsured Motorist coverage, you too are out of luck.

This is why it is important to understand your insurance options and to make sure you are adequately covered regardless of who is at fault in an accident.

If you need to purchase or review your auto insurance, give us a call and we’ll get’cha covered!

Until next time, take care and be aware.
Tommy Curtis and Staff