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What is the Louisiana "No Pay, No Play" law?

In Louisiana, when there is a car accident, the driver who does not have the required car liability insurance coverage, cannot recover the first $15,000 for injuries and the first $25,000 for property damage.

The No Pay, No Play statute was passed in 2011 to persuade Louisiana drivers to purchase insurance. 

The problem this No Pay No Play statute is attempting to solve is to reduce the number of uninsured drivers on Louisiana roads. If an individual does not pay to have insurance and protect other drivers in case of an accident, the individual should not be able to reap the benefits of the system if they are then victims in an accident. Hence, if they do not pay, they do not get to play in the system. 

What Are 5 Key Exceptions to Louisiana No Pay No Play?

car accident no pay no play Louisiana
Here are some key Louisiana “No Pay, No Play” exceptions.

In Louisiana, there is a “No Pay, No Play” law that limits how much a victim can claim from the other driver’s insurance if they themselves are uninsured at the time of the accident. Here’s an outline of exceptions to the Louisiana No Pay, No Play law:

Driver of the Other Vehicle:

  • Is cited for a violation of R.S. 14:98 (Operating a vehicle while intoxicated) as a result of the accident and is subsequently convicted of or pleads nolo contendere to such offense.
  • Intentionally causes the car accident.
  • Flees from the scene of the accident.
  • At the time of the accident, is in furtherance of the commission of a felony offense under the law.
  • The limitation of recovery do not apply if at the time of the accident, the other vehicle is not being operated and the vehicle is not in violation of the provisions of Chapter 1 of this Title.

Other Possible Exceptions of Louisiana No Pay No Play Law Include:

  • The law does not apply to a passenger in an uninsured car, if the passenger had no ownership interest in the car.
  • The law does not apply to drivers involved in crashes who are from another state that does not require the same levels of coverage as Louisiana.
  • The law does not apply to legally parked cars.

§866.  Compulsory motor vehicle liability security; failure to comply; limitation of damages

(a)  The recovery for injury or damages that are otherwise prohibited under this Section.

(b)  The defeat of any affirmative defense otherwise allowed under this Section.

(c)  The avoidance of liability for court costs otherwise required under this Section.

(2)  Reinstatement provisions of a policy during the premium payment grace period specified in the policy shall not be invalidated by the provisions of this Section.

H.  The provisions of this Part shall not apply to any vehicle which is legally parked at the time of the accident.

Acts 1997, No. 1476, §4, eff. Sept. 6, 1998; Acts 1999, No. 1085, §1, eff. Jan. 1, 2000; Acts 2003, No. 532, §1; Acts 2008, No. 921, §1, eff. Jan. 1, 2010; Acts 2014, No. 149, §1.

NOTE:  See Acts 1997, No. 1476, §5(D)(2).  The rate reduction day was the date on which the judgment in the lawsuit became final, May 8, 1998.  Sections 2 through 4 became effective 120 days thereafter, Sept. 6, 1998.

NOTE (OTHER POTENTIAL EXCEPTIONS)  Please note the law does not apply to a passenger in an uninsured car, if the passenger had no ownership interest in the car.  The law does not apply to drivers involved in crashes who are from another state that does not require the same levels of coverage as Louisiana.

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(a)  The recovery for injury or damages that are otherwise prohibited under this Section.

(b)  The defeat of any affirmative defense otherwise allowed under this Section.

(c)  The avoidance of liability for court costs otherwise required under this Section.

(2)  Reinstatement provisions of a policy during the premium payment grace period specified in the policy shall not be invalidated by the provisions of this Section.

H.  The provisions of this Part shall not apply to any vehicle which is legally parked at the time of the accident.

Acts 1997, No. 1476, §4, eff. Sept. 6, 1998; Acts 1999, No. 1085, §1, eff. Jan. 1, 2000; Acts 2003, No. 532, §1; Acts 2008, No. 921, §1, eff. Jan. 1, 2010; Acts 2014, No. 149, §1.

NOTE:  See Acts 1997, No. 1476, §5(D)(2).  The rate reduction day was the date on which the judgment in the lawsuit became final, May 8, 1998.  Sections 2 through 4 became effective 120 days thereafter, Sept. 6, 1998.

NOTE (OTHER POTENTIAL EXCEPTIONS)  Please note the law does not apply to a passenger in an uninsured car, if the passenger had no ownership interest in the car.  The law does not apply to drivers involved in crashes who are from another state that does not require the same levels of coverage as Louisiana. The no pay no play law does not apply to legally parked cars.

A.(1)  There shall be no recovery for the first fifteen thousand dollars of bodily injury and no recovery for the first twenty-five thousand dollars of property damage based on any cause or right of action arising out of a motor vehicle accident, for such injury or damages occasioned by an owner or operator of a motor vehicle involved in such accident who fails to own or maintain compulsory motor vehicle liability security.

(2)  For purposes of this Section, the meaning of “bodily injury” and “property damage” is governed by the applicable motor vehicle liability insurance policy or, in the event of security other than an insurance policy, the meaning of such terms is that which is commonly ascribed thereto.

(3)(a)  The limitation of recovery provisions of this Subsection do not apply if the driver of the other vehicle:

(i)  Is cited for a violation of R.S. 14:98 as a result of the accident and is subsequently convicted of or pleads nolo contendere to such offense.

(ii)  Intentionally causes the accident.

(iii)  Flees from the scene of the accident.

(iv)  At the time of the accident, is in furtherance of the commission of a felony offense under the law.

(b)  The limitation of recovery provisions of this Subsection do not apply if at the time of the accident, the other vehicle is not being operated and the vehicle is not in violation of the provisions of Chapter 1 of this Title.

B.  Each person who is involved in an accident in which the other motor vehicle was not covered by compulsory motor vehicle liability security and who is found to be liable for damages to the owner or operator of the other motor vehicle may assert as an affirmative defense the limitation of recovery provisions of Subsection A of this Section.

C.  If the owner of a motor vehicle, who fails to own or maintain compulsory motor vehicle liability security, institutes an action to recover damages in any amount, regardless of whether such owner or operator is at fault, and is awarded an amount equal to or less than the minimum amount of compulsory motor vehicle liability security, then such owner or operator shall be assessed and held liable for all court costs incurred by all parties to the action.

D.  Each person who applies for a driver’s license, registers a motor vehicle, or operates or owns a motor vehicle in this state is deemed to have given his consent to be subject to and governed by the provisions of this Section.  All persons who apply for the issuance or renewal of a driver’s license, motor vehicle title, or motor vehicle registration shall sign a declaration on a form developed by the Department of Public Safety and Corrections pursuant to rule and regulation that the person acknowledges and gives consent to the requirements and provisions of this Section and that the person will comply with all provisions of this Section and the Motor Vehicle Safety Responsibility Law.  Proof of whether the person obtained or signed such declaration is irrelevant to the application of this Section.

E.  Nothing in this Section shall preclude a passenger in a vehicle from asserting a claim to recover damages for injury, death, or loss which he occasioned, in whole or in part, by the negligence of another person arising out of the operation or use of a motor vehicle.  This Subsection shall not apply to a passenger who is also the owner of the uninsured motor vehicle involved in the accident.

F.(1)  Notwithstanding any provision of law to the contrary, no insurer shall lose any rights of subrogation for claims paid under the applicable insurance policy for the recovery of any sum in excess of the first fifteen thousand dollars of bodily injury and the first twenty-five thousand dollars of property damages.

(2)  In claims where no suit is filed, the claimant’s insurer shall have all rights to recover any amount paid by the claimant’s insurer on behalf of the insured for the recovery of any sum in excess of the first fifteen thousand dollars of bodily injury and the first twenty-five thousand dollars of property damages.

G.(1)  Except for newly acquired vehicles added to a policy subject to the policy terms, the issuance, change, or adjustment of any motor vehicle liability security or insurance policy subsequent to a motor vehicle accident, without proof of coverage having been bound prior to such motor vehicle accident, shall not effectuate any of the following:

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(a)  The recovery for injury or damages that are otherwise prohibited under this Section.

(b)  The defeat of any affirmative defense otherwise allowed under this Section.

(c)  The avoidance of liability for court costs otherwise required under this Section.

(2)  Reinstatement provisions of a policy during the premium payment grace period specified in the policy shall not be invalidated by the provisions of this Section.

H.  The provisions of this Part shall not apply to any vehicle which is legally parked at the time of the accident.

Acts 1997, No. 1476, §4, eff. Sept. 6, 1998; Acts 1999, No. 1085, §1, eff. Jan. 1, 2000; Acts 2003, No. 532, §1; Acts 2008, No. 921, §1, eff. Jan. 1, 2010; Acts 2014, No. 149, §1.

NOTE:  See Acts 1997, No. 1476, §5(D)(2).  The rate reduction day was the date on which the judgment in the lawsuit became final, May 8, 1998.  Sections 2 through 4 became effective 120 days thereafter, Sept. 6, 1998.

NOTE (OTHER POTENTIAL EXCEPTIONS)  Please note the law does not apply to a passenger in an uninsured car, if the passenger had no ownership interest in the car.  The law does not apply to drivers involved in crashes who are from another state that does not require the same levels of coverage as Louisiana.

Contact an Experienced Louisiana Car Accident Lawyer Near You

Contact an experienced Louisiana car accident lawyer near you at the Lavis Law Firm. Charles Lavis has been handling car accident and personal injury lawsuits in the New Orleans area since 1995.  Throughout his legal career, Charles has represented workers, consumers, homeowners, and business owners against insurance companies and corporations. He represents clients who have been injured due to the negligence of others. 

Contact Lavis Law Firm – Personal Injury and Accident Attorney today for a FREE consultation

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