Yes, what the at-fault party's insurance provider is telling you is true. Since California passed Proposition 213 several years ago uninsured motorist and drunk drivers are not entitled to receive compensation for pain and suffering.

In 1996, California adopted this program known as no-pay/no-play. In short, this concept reduces a person’s right to recovery from an auto accident if he or she is uninsured at the time of injury. The premise behind this is that persons who are responsible enough to purchase insurance should not have to subsidize others who violate the law and do not obtain coverage. According to this state’s no pay/no play initiative (Proposition 213), both uninsured drivers and drunk drivers are prohibited from suing for non-economic damages such as pain and suffering.

For more information on this law you can contact the California Department of Insurance. To get a CA auto insurance so that you will not be caught driving uninsured again, follow this link.