The Insurance Research Council (IRC) says that about 14% of drivers across the country are uninsured. This means that almost 1 out of 7 motorists have no automobile insurance. The states with the highest insurance premiums also have the highest number of uninsured drivers, as insurance companies in these states must make up for costs incurred by uninsured or underinsured motorists.
If a driver in Louisiana is either uninsured or underinsured, then the “No Pay, No Play” statute comes into effect. This statute prevents uninsured drivers from claiming the first $15,000 for medical damages and the first $25,000 for property damages, even if they are not the driver at fault. In these cases, they will receive money only in excess of these thresholds.
As of 2018, Louisiana has the second highest vehicle insurance costs in the nation. More populated states like New York and California are much further down the list, which is a telling sign of just how much uninsured drivers affect rates. It was found that approximately 13% of all drivers in Louisiana are uninsured.
In order to change this and to reduce premiums for insured drivers, in 1997, the state enacted Act 1476, known as Omnibus Premium Reduction Act. This law contains the “No Pay, No Play” statute that punishes uninsured and underinsured Louisiana drivers while at the same encouraging them to purchase a proper level of auto insurance.
Exceptions to the “No Pay, No Play” Statute
There are a number of exceptions to Louisiana’s “No Pay, No Play” statute. First and foremost, it only requires drivers to secure a bare minimum amount of auto insurance. The law also does not apply to cars that were legally parked at the time of the accident, and it does not apply to cars registered in other states, if the other state does not require a minimum level of auto liability insurance.
The law does not apply if the driver of the other car is convicted of the any of the following violations when the accident happened: driving while intoxicated, intentional destruction of property, fleeing the scene of an accident, or committing a felony. Additionally, the law does not apply to a passenger in an uninsured/underinsured car, if they have no ownership interest in the car.
There are 10 other states currently that have “No Pay, No Play” statutes on their books. This includes Alaska, California, Indiana, Iowa, Kansas, Michigan, Missouri, New Jersey, North Dakota and Oregon.
If you are injured in an accident with an uninsured driver, be sure to reach out to a local car accident lawyer who can make you aware of your legal options. The Louisiana car accident attorneys at E. Orum Young Law Offices can help guide you through the personal injury claims process. We have over 35 years of experience representing injured drivers and can put our legal knowledge to work for you. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.