If a driver doesn’t have auto accident insurance in Louisiana, the state’s “no pay, no play” law prevents them from recovering up to $15,000 of bodily injury damages and up to $25,000 of property damages. However, drivers should know about five exceptions to the rule.
It is Louisiana Car Accident: Exceptions to the No Pay No Play Rule and Your Legal Rights important for drivers in Louisiana to be aware of their legal rights in the event of a car accident, especially if they do not have car insurance. Consulting with an experienced attorney can help car accident victims understand their options, determine whether any of the exceptions to the “no pay, no play” law apply to your case and navigate the complex legal system to ensure car accident victims who are injured receive the compensation they deserve.
What Is the Louisiana ‘No Pay, No Play’ Law?
Since 2011, Louisiana drivers must carry auto accident insurance, or they won’t be able to recover damages, according to the “no pay, no play” law, also known as RS 32:866.
The statute prevents victims with little or no auto accident insurance coverage from recovering the first $15,000 of bodily injury compensation and the first $25,000 of property damage compensation.
So, no matter which driver is at fault for the accident, the uninsured party is responsible for covering these expenses.
Purpose and Rationale
The purpose of the 'No Pay, No Play' policy is to encourage drivers to obtain insurance coverage. By requiring all drivers to carry insurance coverage, the policy aims to reduce the number of uninsured drivers on Louisiana's roads. Uninsured drivers are more likely to cause accidents and are less likely to be able to pay for damages or injuries they cause in an accident.
The rationale behind the policy is that drivers who choose not to carry insurance coverage should not be able to benefit from the insurance policies of other drivers. By limiting the amount that uninsured drivers can recover in an accident, the policy aims to reduce the number of uninsured drivers on Louisiana's roads and to ensure that drivers who do have insurance coverage are not unfairly burdened with the costs of accidents caused by uninsured drivers.
Overall, the 'No Pay, No Play' policy has been controversial since its implementation. While some argue that it encourages drivers to obtain insurance coverage, others argue that it unfairly penalizes drivers who cannot afford insurance or who are unable to obtain insurance coverage due to other factors.
Are There Exceptions to Louisiana’s ‘No Pay, No Play’ Law?
If you have little or no auto accident insurance, you will be on the hook to pay medical expenses and car repairs whether you are at fault or not. But there are five exceptions to Louisiana’s “no pay, no play” law that could exempt you from having to pay.
If your car was legally parked at the time of the collision, the law does not apply, even if you don’t have auto accident insurance.
If you were hit by a driver under the influence of alcohol or drugs or the other driver committed certain other crimes before the accident, the law does not apply to you.
If you are a driver from another state with different insurance requirements, you are exempt from the “no pay, no play” law.
If you are a passenger but not a co-owner of the vehicle that has no insurance, the law does not apply to you, and you can make a compensation claim.
If you are carrying the minimum amount of auto accident insurance with $15,000 of bodily injury coverage and $25,000 of property damage coverage, you are exempt from the “no pay, no play” law. You do not have to carry full coverage.
It may not be immediately apparent that you are exempt from Louisiana’s “no pay, no play” law, but our car accident attorney from our firm can determine if any of the above five exceptions apply to you.
What if an At-Fault Driver Doesn’t Have Insurance in Louisiana?
Unfortunately, if the other driver is at fault for the accident and does not have auto insurance, your costs may end up going unpaid. Your insurance company will likely try to recover damages from the at-fault driver directly as opposed to the usual process of recovering damages from the other insurance company.
However, this effort may be unsuccessful. If this is the case, your insurer will likely raise premiums to offset the loss. You can also obtain legal representation and file a lawsuit against the other driver seeking compensation to cover your losses.
Can You Still Receive Compensation After an Accident?
Even if you don’t have auto accident insurance, you may still be able to recover compensation to cover your losses.
Louisiana’s “no pay, no play” law only prevents you from recovering the first $15,000 of bodily injury damages and the first $25,000 of property damages. If your medical or car repair expenses go beyond those amounts, you can seek compensation to cover additional expenses beyond those amounts, although you will have to pay the first $15,000 or $25,000 out of your own pocket.
This is why having adequate insurance coverage in Louisiana is important.
How Can I Get Auto Insurance in Louisiana?
As long as you purchase the minimum amount of coverage ($15,000 for bodily injury and $25,000 for property damage), you are exempt from the “no pay, no play” law.
Several auto insurance providers in the state can offer you coverage. You can contact one or several to get a quote that works for you and begin the process. You should also consider purchasing uninsured motorist coverage (RS 22:1295), which allows you to file a claim with your own insurer if the other driver has no insurance. This offers you another layer of protection, especially in a scenario where the at-fault driver has no insurance.
Legal Rights After a Car Accident
Right to Compensation
After a car accident, individuals have the right to seek compensation for damages and injuries sustained in the accident. This compensation may cover medical bills, lost wages, and other expenses related to the accident. In Louisiana, individuals can pursue compensation through their own insurance policy or by filing a personal injury lawsuit against the at-fault driver.
Statute of Limitations
It is important to note that there is a statute of limitations for filing a personal injury lawsuit in Louisiana. This means that individuals have a limited amount of time to file a lawsuit after the accident. In Louisiana, the statute of limitations for personal injury claims is one year from the date of the accident. However, recent legislation has changed the statute of limitations to two years depending on certain types cases. It is important to consult with a qualified attorney as soon as possible to ensure that the statute of limitations is not missed.
Dealing With Insurance Companies
Dealing with insurance companies can be a complex and confusing process. Insurance companies may try to offer a settlement that is less than what the individual is entitled to, or they may deny the claim altogether. It is important to have a qualified attorney on your side to help navigate the process and ensure that your legal rights are protected. An attorney can negotiate with the insurance company on your behalf and help you obtain the compensation you deserve.
Navigating Car Accident Claims
Filing a Claim
After a car accident, filing a claim with your insurance company is the first step towards recovering damages. The process of filing a claim involves submitting a written notice of the accident, along with any supporting documents, to your insurance company. The notice should include details such as the date, time, and location of the accident, as well as the names and contact information of any witnesses.
However, you should first speak to an experienced car accident law firm, like Locke Meredith, Sean Fagan & Associates Injury Attorneys, before speaking with any insurance company.
Claim Investigation Process
Once the claim is filed, the insurance company will initiate an investigation into the accident. This investigation will involve gathering evidence such as police reports, medical records, and witness statements. The insurance company will also assess the damages to your vehicle and any injuries you sustained in the accident.
Settlement Negotiations
After completing the investigation, the insurance company will make a settlement offer. This offer will typically be lower than the amount of damages you are seeking, so it is important to negotiate with the insurance company to reach a fair settlement. If a settlement cannot be reached, you may need to file a lawsuit to recover damages.
Navigating the car accident claims process can be complex and overwhelming. It is important to seek the advice of an experienced attorney who can guide you through the process and help you obtain the compensation you deserve.
Litigation Process
Initiating a Lawsuit
If a person is injured in a car accident in Louisiana and is unable to settle the case, the injured party may be able to file a lawsuit to recover damages. The injured party must prove that the at-fault driver was negligent and caused the accident. The lawsuit must be filed within one year to two years depending on certain circumstances of the accident.
To initiate a lawsuit, the injured party must file a petition in the appropriate court. The petition must include a statement of the facts of the case, the injuries sustained, and the damages sought. The at-fault driver must be served with a copy of the petition and given an opportunity to respond.
Discovery Phase
During the discovery phase, both parties exchange information and evidence related to the case through different discovery mechanisms. This may include interrogatories, request for documents, request for admission of facts, depositions and other discovery tools. The injured party may also be required to undergo a medical examination by a doctor chosen by the at-fault driver's insurance company.
Trial and Verdict
If the parties are unable to reach a settlement, the case will proceed to trial. At trial, both parties will present evidence and arguments to a judge or jury. The injured party must prove every elements required by the applicable law.
If the injured party is successful, the court will issue a verdict and award damages. The damages may include compensation for medical expenses, lost wages, and pain and suffering. The at-fault driver may be required to pay the damages out of pocket or through their insurance company.
Overall, the litigation process can be complex and time-consuming. It is important for injured parties to seek the assistance of an experienced attorney to navigate the legal system and protect their legal rights.
Hiring a Car Accident Attorney
Benefits of Legal Representation
After a car accident, hiring a car accident attorney can be a wise decision. An experienced attorney can help you navigate the legal system and ensure that you receive fair compensation for your injuries and damages.
One of the main benefits of hiring an attorney is that they can handle all communication with insurance companies and other parties involved in the accident. This can help alleviate stress and ensure that you do not accidentally say something that could harm your case.
Additionally, an attorney can investigate the accident and gather evidence to support your case. They can also negotiate with insurance companies to ensure that you receive a fair settlement. If necessary, an attorney can take your case to court and advocate on your behalf.
What to Look for in an Attorney
When hiring a car accident attorney, it is important to choose someone who is experienced and knowledgeable in this area of law. Look for an attorney who has a track record of success in handling car accident cases. Google reviews are a great source to gather information from other car accident and injury victims’ experience with the attorney.
It is also important to choose an attorney who is responsive and communicates well with you. You should feel comfortable asking questions and receiving updates on your case.
Finally, consider the attorney's fees and payment structure. Many car accident attorneys work on a contingency fee basis, which means they only get paid if you receive a settlement or judgment in your favor. Make sure you understand the attorney's fees and how they will be paid before hiring them.
Learn More About Exceptions to Louisiana’s ‘No Pay, No Play’ Law Today
Maybe you don’t quite understand Louisiana’s “no pay, no play” law or the exceptions that apply. You may not even know about them or if they apply to your situation. A car accident attorney from Locke Meredith, Sean Fagan & Associate Injury Lawyers can explain the law to you and determine if you are exempt under any of the exceptions.
Our Louisiana-based attorney team have over 75 years of collective personal injury experience providing legal services to clients like you. If you or someone you love were in a car accident and you or the other driver have no insurance, contact us to schedule a free consultation today.
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