No Pay, No Play

If there is no insurance available for one of the vehicles involved in an automobile accident, Louisiana's "No Pay, No Play" statute (La.R.S. 32:866) will be applied. This statute which became effective in 1998 forbids a motor vehicle owner who does not have liability insurance from recovering the first ten-thousand dollars of any bodily injury or property damage claim. This means if you are driving a car without insurance you give up the right to collect your first ten-thousand dollars of personal injury and property damage claims.

These requirements apply not only to Louisiana residents but also drivers from other states which require their drivers to carry liability insurance. However, accidents caused by drunk drivers or hit and run drivers are not subject to the "No Pay, No Play" law. In these situations, victims are allowed to recover despite not having any insurance. Passengers in a vehicle that lacks valid insurance are also not subject to the "No Pay, No Play" limitation. If the involved passenger is also an owner of the vehicle at issue, then the "No Pay, No Play" limitation is applicable.

The provisions of this statute have changed through legislative amendment and judicial interpretation. A licensed attorney can assist you in understanding these changes and insure that your rights will be fully protected.