Car insurance laws may vary from state to state. Two key differences are the minimum insurance requirements and the consequences of not having valid insurance. In the state of Louisiana, there is a “no pay, no play law”.

According to Louisiana’s “No pay, No play policy,” if you were injured due to another drivers’s negligence, and you were uninsured, then there are limits on the amount of damages that you can recover. You would not be able to collect the first $15, 000 for damages related to bodily injury. Also, you cannot claim the first $25,000 for property damage.

Why Louisiana has a No Pay, No Play Law

The cost of auto insurance in Louisiana is more expensive compared to other states, According to DMV. Org. It ranks second in the nation, just behind Michigan. The reason for these high premiums are because more than 10 percent of Louisiana motorists are uninsured. This is why legislators introduced the no pay no play law, the purpose is to encourage more drivers to purchase auto insurance.

Should I choose Liability or Full Coverage Insurance?

In Louisiana, drivers do not need full insurance coverage? If you have liability coverage for your car and the policy is compliant with state requirements, then you can claim against the negligent driver’s insurance company. Under these circumstances, it is not necessary to file a claim with your own insurance provider.

The no pay, no play policy is just one of many laws that govern personal-injury cases. Understanding these laws can help you avoid mistakes and potentially speed up the process of recovering damages.

#Source: Morris Bart