Louisiana has strengthened its “No Pay, No Play” law, making auto insurance more essential than ever. Beginning August 1, 2025, House Bill 434 significantly increases the penalties for uninsured drivers. Under the updated law, anyone who operates a vehicle without the required liability insurance will be barred from recovering the first $100,000 in bodily injury damages and the first $100,000 in property damage after a crash.
In other words, if you’re uninsured and injured in an accident—even one caused by another driver—you may lose the right to recover compensation for a large portion of your losses. The new law greatly raises the financial stakes for driving without coverage and reinforces the importance of maintaining valid auto insurance in Louisiana.
If you’ve been injured in a Louisiana car accident and have questions about how these new rules affect your rights, the award-winning car accident attorneys at Shamieh Law can help. Call 469-813-7332 or contact us online for a free consultation.
No Pay, No Play: Understanding Auto Insurance Requirements in Louisiana
Louisiana’s updated “No Pay, No Play” law is intended to hold uninsured drivers accountable and encourage all motorists to maintain required auto insurance coverage. Even so, many Louisiana drivers remain uninsured. According to the Insurance Information Institute, about 15.4 percent of drivers nationwide, or roughly one in seven, had no insurance in 2023. Louisiana’s rate is slightly lower at 11.7 percent, but that still represents a large number of motorists who could lose part of their right to recover damages under the revised law.
Before this update, Louisiana Revised Statute § 32:866 barred uninsured drivers from recovering the first $15,000 in bodily injury damages and $25,000 in property damage after a crash. But the August 2025 changes to the law raised those recovery bars to $100,000 for bodily injury and $100,000 for property damage. In practical terms, an uninsured driver who is injured in an accident, even when someone else caused it, could be prevented from recovering up to $200,000 in total damages.
Supporters of the law believe these higher limits will discourage uninsured driving and promote greater financial responsibility across the state. Critics argue that the changes may disproportionately affect lower-income families who already pay some of the highest average auto insurance premiums in the country, about $2,500 per year.
To stay compliant and protect your rights under Louisiana law, it is essential to maintain at least the minimum required auto liability coverage, which currently includes:
- $15,000 for bodily injury to one person
- $30,000 for bodily injury to two or more people in a single accident
- $25,000 for property damage
Do Other States Have No Pay, No Play Laws?
Are There Exceptions to Louisiana’s No Pay, No Play Law?
Yes. There are a handful of exceptions to the No Pay, No Play law in Louisiana. For example, it may not apply if you:
- Were hit by a driver under the influence of drugs or alcohol.
- Were hit by a driver committing a felony at the time of the crash.
- Were hit by a driver who fled the scene.
- Were hit by a driver who intentionally caused the crash.
- Were a passenger but not the co-owner of the uninsured vehicle.
- Are from a state that does not require auto liability insurance.
- Were legally parked when the accident happened.
Determining whether Louisiana’s No Pay, No Play law applies to your case can be tricky. Our knowledgeable and compassionate Louisiana personal injury lawyers can help. We will conduct a full investigation of your case and determine if any exceptions apply.
Why Are No Pay, No Play Laws Controversial?
Insurers are in the business of spreading risk. When they collect monthly premiums from their policyholders, the money is pooled. In the event one of their insureds is involved in an accident, insurers begrudgingly draw on the pool’s resources to pay for injuries and losses up to the policy limits.
To encourage (or coerce) all road users to contribute to insurance pools, nearly all states require drivers to purchase auto liability insurance. After all, every road user contributes to the risk of accidents on the road—so the argument goes. In other words, supporters of No Pay, No Play laws think it is unfair for uninsured road users to reap benefits on the backs of those who purchase auto liability insurance.
Meanwhile, folks who argue against No Pay, No Play laws believe they unfairly discriminate against those who simply cannot afford to pay for auto liability insurance. Some opponents have even questioned whether No Pay, No Play laws are unconstitutional because they violate the principle of equal protection. A somewhat more utilitarian counterargument against these laws also questions whether, at the end of the day, they achieve their purpose.
Are No Pay, No Play Laws Constitutional?
So far, the constitutionality of No Pay, No Play laws has been challenged in three states: Louisiana, New Jersey, and Oklahoma. In 1998, the Supreme Court of Louisiana upheld the constitutionality of such laws in Progressive Sec. Ins. v. Foster. In 2004, the Supreme Court of New Jersey did so in Caviglia v. Royal Tours of America.
However, in 2014, the Supreme Court of Oklahoma came to the opposite conclusion in Montgomery v. Potter. The majority explained that the Oklahoma No Pay, No Pay statute “creates an impermissible special class by restricting damages in civil negligence actions for victims who also happen to be uninsured drivers while the general class of automobile accident victims is not prevented from the recovery of damages for pain and suffering.”
To learn more about the ongoing debate surrounding No Pay, No Pay laws around the country, see the following resources:
- Rachel Jenny, The Louisiana Legislature’s Attempt to Reduce Auto Insurance Rates with No Pay, No Play: The Answer, A Step in the Right Direction, or Completely Useless?, 66 La. L. Rev. (2006).
- Jorell Kuttenkuler, No Pay No Play: Not Okay? Analyzing the Constitutionality of Missouri’s No Pay No Play Statute following Jiles v. Schuster Co., 4 Bus. Entrepreneurship & Tax L. Rev. 316 (2020).
- The Potential Effects of No Pay, No Play Laws, Insurance Research Council (2012).
- Joe Cunningham, Louisiana Drivers Pay More for Auto Insurance Than 48 Other States KPEL 96.5 (December 2023).
What if the At-Fault Driver Doesn’t Have Auto Insurance?
You could try filing a lawsuit against the at-fault driver even if they are uninsured. However, chances are they will not have the assets to compensate you fully.
Alternatively, you can file a claim through your own uninsured/underinsured motorist (UM/UIM) policy. In Louisiana, insurers must include this coverage in the policies they sell unless the driver purchasing expressly rejects the coverage in writing. You may also turn to your first-party medical payments insurance, sometimes called MedPay. Finally, collision or comprehensive coverage could cover your property damage.
As a last resort, you could sue and secure a judgment lien against the at-fault driver. Once a judgment lien is filed with the appropriate government authority, such as the parish clerk’s office, it becomes a matter of public record and may attach to the debtor’s real estate, personal property, or other assets. The lien typically remains in place until the underlying debt is satisfied, either through payment by the debtor or through the sale of the property to which the lien is attached.
Steps To Take If Hit By an Uninsured Driver
An auto accident can be extremely stressful, especially if you suffer serious injuries and are facing mounting medical bills. In all cases, the steps you take in the aftermath of a car accident can significantly impact your prospects of recovering compensation. Take the following steps if you are involved in an accident with an uninsured driver in Louisiana:
- File a Police Report – Immediately report the accident to the police, regardless of the other driver’s insurance status. A police report will document the incident and provide essential evidence.
- Gather Information – Collect as much information as possible from the uninsured driver, including their name, contact details, and vehicle information. Take photos and videos of the accident scene and any damages.
- Notify Your Insurance Company – Inform your own insurance company about the accident. Your policy may include uninsured/underinsured motorist (UM/UIM), medical payments coverage, collision, or comprehensive coverage.
- Seek Medical Attention – Even if your injuries seem minor, seek medical attention promptly. Documenting your injuries is crucial for substantiating your insurance claims.
- Consult an Attorney – Consult with our Louisiana car accident lawyers as soon as possible. We have extensive experience handling uninsured motorist claims and can help you navigate the complexities of your case.
Questions About No Pay, No Play? Contact Shamieh Law To Learn More.
No matter which side of the aisle you stand on when it comes to Louisiana’s No Pay, No Play law, handling the aftermath of a car accident can be stressful. Our skilled car accident lawyers in Lake Charles are standing by to help. We will ensure you know your full legal rights and options. Call 337-477-7222 or fill out our online contact form to schedule your free consultation.