Gianetta Palmer is a writer for CarInsurance101.com, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Jun 11, 2020

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Louisiana No Pay, No Play Law Facts
Louisian No Pay, No Play InformationData
Louisiana lawLA R.S.32:866
Year law adopted2011
Number of states with No Pay, No Play laws11
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The no pay, no play law in Louisiana says you can’t claim money from a car insurance company if you’re uninsured even if you’re not at fault. Louisiana’s No Pay, No Play law was started in 2011 and it still stands today.

This guide will go over the how Louisiana No Pay, No Play works, and explore what other states follow the same law.

You want to insured anywhere you go in the U.S., so to avoid the penalty of no pay, no play law in Louisiana, enter your ZIP code in the FREE comparison tool above to start comparing car insurance rates in your local area.

Table of Contents

Is Louisiana a no pay, no play state?

Yes. Louisiana adopted the no pay, no play law back in 2011. The law is known as LA R.S.32:866, which states that an uninsured driver cannot receive $15,000 for bodily injury or $25,000 for property damage if they are uninsured or uninsured during the time of the accident.

Even if the other driver is negligent, you can’t receive a claim from a car insurance company if you’re not insured in Louisiana.

This video reviews Louisiana-specific car insurance details including the no pay, no play law.

While all states require drivers to maintain insurance, Louisiana is unique in that drivers without their car insurance cannot receive a settlement from another person’s insurance policy.

In an effort to reduce the cost of insurance and lower the uninsured motorist population, Louisiana enacted the no pay, no play law. If you live in Louisiana or are considering moving there, it’s important to understand this law and how it applies to you and your vehicles.

The Cost of Uninsured Motorists

States with a high number of uninsured drivers also have high insurance costs. This occurs because accidents caused by drivers without insurance cause insurance companies to lose money.

Normally, the person who is at fault for a car accident is responsible for paying the cost of repairs to the not-at-fault driver. If the at-fault driver does not have insurance, however, these costs may go unpaid and the resulting lawsuit can be time-consuming and expensive for everyone involved.

Whenever a person files a claim, the insurance company pursues the other party’s carrier through a process called subrogation. This allows the company to be reimbursed for the settlement costs.

If the at-fault driver does not have insurance, the insurance company will attempt to collect the funds from the driver directly, but this is not always successful. In turn, the insurance company must increase the car insurance rates for its customers in order to off-set the lost money spent on claims.

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Should states have no pay, no play laws for health insurance?

Car insurance laws vary from one state to the next. The minimum requirements for liability insurance differ, and some states require all drivers to carry first-party medical coverage while others do not.

Health insurance works a lot like no pay, no play because you can’t receive health insurance until you’ve paid for your premium.

Do other states have a no pay, no play law?

Only 11 states carry the no pay, no play law and they are:

  • Alaska
  • California
  • Indiana
  • Iowa
  • Kansas
  • Louisiana
  • Michigan
  • Missouri
  • New Jersey
  • North Dakota
  • Oregon

Let’s compare the average car insurance rates of states that have no pay, no play law.

Average Annual Car Insurance Rates in States with No Pay, No Play Law
StateAverage Annual Rates
Iowa$2,981
Kansas$3,280
Missouri$3,329
Indiana$3,415
Alaska$3,422
Oregon$3,468
California$3,689
North Dakota$4,166
New Jersey$5,515
Louisiana$5,711
Michigan$10,499
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Louisiana is the second most expensive state for car insurance, trailing just behind Michigan. The cheapest state with no pay, no play law is Iowa. The reason Louisana is more expensive is that approximately 13 percent of all Louisiana drivers are uninsured.

Under the no pay, no play law, an individual can only pursue damage from another insurance company if they have a car insurance policy of their own. If a person does not have insurance, they cannot file a claim against another person’s car insurance policy, even if the accident is not their fault.

Here are two states that have no pay, no play law:

  • No Pay, No Play in California – The law works the same in California. It limits what an uninsured driver can collect from an insured driver after an accident. In some economic losses, the no-pay no-play law in California (Prop 213) requires an uninsured driver to deduct $10,000 before they can sue the at-fault driver for property damage.
  • No Pay, No Play in Missouri – Under Missouri’s statute known as 303.390, any uninsured motorists can’t receive claims from an insured motorist after a car accident, even when the insured driver may be at fault.

A driver may be able to recover economic losses such as repair bills and medical bills. However, they are barred only from suing for non-economic damages like physical pain or psychological suffering.

Additionally, an individual’s ability to pursue legal action against another driver is diminished if they do not have insurance. In other words, if you have no insurance, you cannot sue for damage when your car is hit. This also means that two uninsured motorists that collide cannot pursue legal action against each other.

No Pay, No Play Law Limitations

You only need liability insurance, not full coverage. In other words, as long as you carry the state-required liability coverage on your vehicle, you will be able to file a claim against another person’s insurance if they hit your car. You do not need to file a claim with your own insurance company first.

This Allstate video gives you more insight into liability insurance:

The law does not apply to parked vehicles. If your car was parked at the time of the collision, you can file a claim against the other person’s policy whether or not you have liability insurance on your car.

The law does not apply to people from other states. If you’re passing through Louisiana in a vehicle without auto insurance and you get involved in an accident, you can file a claim for that damage. You may still be cited for driving without insurance, however, and could face a suspended license.

Louisiana’s statute LA R.S. 14:98 says the no pay, no play law does not apply if the at-fault driver was intoxicated or fled the scene of the accident.  Therefore, even if your vehicle does not carry insurance, you can still file a claim against the other person’s policy after a hit-and-run or drunk driving accident.

Even as a high-risk driver, you can still find car insurance in your local area. Enter your ZIP code in the FREE comparison tool to get started shopping for car insurance and avoiding Louisiana’s no pay, no play law.

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What happens if you don’t have car insurance in Louisiana?

Bear in mind that even if you’re not involved in a collision, driving without insurance can still have a negative impact whether in Louisiana or another state. Insurance is required by law, and if you are caught driving without proper insurance you will be cited and your license will be revoked until insurance is purchased on the vehicle and you submit an SR-22 form to the DMV.

Car insurance laws can be complicated, and it’s your responsibility to ensure that you carry the appropriate amount of coverage at all times. If you already have car insurance, be sure to notify your insurer about any changes of address so that they can update your policy.

Get car insurance right now by entering your ZIP code in the free comparison tool!

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Why is car insurance so expensive in Louisiana?

Louisiana’s insurance market has undergone a number of lawsuits from residents. For the past two decades, Louisiana has gone through a number of disasters, which caused a barrage of customer claims over the years. The loss in claims has increased the rates dramatically to offset the loss in claims.

To protect yourself from Louisiana’s no pay, no play law, enter your ZIP code in the FREE comparison tool to find affordable car insurance rates in your local area.

Frequently Asked Questions: No Pay, No Play Laws

We’ll use this final section to talk about no pay, no play questions that are frequently searched on the web. If you want to see more, click on the logo at the top left of the webpage to browse the rest of our articles, guides, and reviews.

Does Texas have a no pay no play law?

Texas is one of many states that doesn’t have a no pay, no play law.

How does Louisiana no pay, no play for excluded drivers work?

This can very complex. Your car insurance company may not cover the costs due to an excluded driver, and the car insurance policy of the excluded driver may not cover costs for bodily injury or property damage. The only way you can get covered as an insured driver is to have full coverage. Uninsured drivers won’t receive any compensation under the no pay, no play law.

Is Louisiana a no-fault state?

No. Louisiana is an at-fault state (tort state).

Where can I find Louisiana auto accident laws?

You can find Louisiana laws on the Louisiana State Legislature website.

What is Louisiana’s full compensation rule?

Louisiana’s full compensation rule says when you have not received full compensation for your losses, you have an argument that the insurance company should not be entitled to recover from the other party.