Most states have harsh penalties if caught driving without insurance, especially if you’re in an accident. States with “no pay no play” laws take it further by prohibiting uninsured motorists from being compensated for certain items, even if they weren’t at fault for the accident.
Learn which states have “no pay no play” laws and what they mean.
What is the ‘no pay no play’ law?
The “no pay, no play” law is a type of legislation enacted in some U.S. states that restricts the rights of uninsured drivers to seek certain types of damages if they are involved in an accident.
These laws typically prevent uninsured drivers from claiming non-economic damages—such as pain and suffering—against insured drivers who are at fault for an accident.
This law encourages drivers to get and maintain the required auto insurance. By restricting uninsured drivers from claiming these damages, the law aims to decrease the number of uninsured motorists and ensure that all parties involved in accidents are financially covered.
What are economic and non-economic damages?
Damages from an accident or injury can generally be classified into two categories: economic damages and non-economic damages.
Economic damages
Economic damages are quantifiable monetary expenses directly resulting from an injury or accident. It includes costs for hospital stays, doctor visits, surgical procedures, medications, rehabilitation services and ongoing medical treatments.
If the injury affects the victim’s ability to earn money in the future, compensation for this loss can also be considered. It also includes travel expenses to medical appointments, hiring help or caregivers, and any other out-of-pocket expenses related to the injury.
Non-economic damages
Non-economic damages refer to compensation for the non-monetary aspects of an injury. It includes compensation for the physical pain and emotional distress suffered from the injury and for the loss of enjoyment from hobbies and activities that one can no longer perform due to the injury.
Which states have ‘no pay no play’ laws?
Here are a handful of states with no pay, no play laws in place:
Alaska
In Alaska, if you’re involved in a car accident while driving uninsured, the “no pay, no play” law prevents you from claiming “non-economic” damages, such as pain and suffering, from the driver at fault.
California
In California, there are three specific situations where a driver cannot claim non-economic damages following an accident:
- If the driver was under the influence during the accident.
- If the driver was uninsured.
- If the injured driver fails to demonstrate financial responsibility as mandated by state law.
However, this restriction does not apply if the at-fault driver was also under the influence at the time of the accident and is subsequently convicted of this offense.
Indiana
Indiana’s no-pay no-play law states that you won’t be able to claim “non-economic” damages (like pain and suffering) in a car insurance claim if:
- You were driving without insurance when the crash happened.
- You have a history of driving uninsured.
Iowa
In Iowa, driving without insurance does not restrict a driver’s ability to file a lawsuit. The only circumstance where a driver’s legal options are limited is if they are convicted of a felony that occurred during the accident.
Kansas
In Kansas, a driver can lose the right to sue for non-economic damages in two situations: if they fail to carry the required personal injury protection (PIP) insurance or if convicted of driving under the influence (DUI).
Louisiana
Louisiana’s no-pay, no-play laws specify that if a driver is uninsured during an accident, they lose the right to sue for:
- The first $15,000 of bodily injury damages
- The first $25,000 of property damage
However, this restriction does not apply if the at-fault driver was convicted of driving under the influence, intentional misconduct, or fleeing the accident scene.
Michigan
If you were uninsured at the time of the accident and your case goes to trial, you cannot claim “non-economic” damages, such as pain and suffering, in court—even if you win the trial.
Missouri
In Missouri, driving without insurance means a driver forfeits the right to claim economic and non—economic damages. The only exception is if the other driver was under the influence at the time of the accident.
New Jersey
New Jersey restricts drivers from claiming both economic and non-economic compensation under the following circumstances:
- Driving without insurance
- Driving under the influence of alcohol or drugs
- Driving with the intent of causing injury to himself or others
North Dakota
In North Dakota, if a driver has been previously convicted of driving without insurance, they are not allowed to sue for non-economic damages following an accident.
Oregon
Oregon’s no-pay no-play law restricts uninsured drivers from suing for non-economic losses such as pain and suffering. However, this law does not apply if the driver responsible for the accident was driving recklessly, driving under the influence or driving with the intent to cause the collision.
Are there any exceptions to the ‘no pay no play’ law?
There are exceptions to the “no pay no play” law that allow uninsured drivers to recover damages even if the state generally restricts such claims. If the driver who caused the accident was under the influence of alcohol or drugs and is convicted, the uninsured driver may still be able to claim non-economic damages.
The uninsured motorist might not be barred from claiming damages if the accident was caused intentionally by the at-fault driver.
Final thoughts
Most states with ‘no pay no play’ limitations on car insurance claims (and lawsuits) are only on non-economic damages. It includes pain and suffering, mental anguish and loss of companionship. Economic damages, the uninsured motorist’s actual medical bills and property damage are typically recoverable.
States intend for ‘no pay no play’ laws to reinforce driver compliance with state financial responsibility laws. The best way to not be affected by ‘no pay no play’ laws is to stay insured. If your current auto insurance rates are too high, compare car insurance and look for ways to save before dropping coverage.
Resources & Methodology
Source
Connecticut General Assembly. “No Pay, No Play” Auto Insurance Laws.” Accessed May 2024.
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