Updated July 25, 2025 

In addition to having a valid driver’s license to legally drive a vehicle in Louisiana, you also must be covered by a valid auto insurance policy providing liability coverage. If you cause an accident, this coverage will provide compensation for the other driver’s medical and vehicle repair bills.

Uninsured or underinsured drivers who cause accidents can be held personally liable for the damages they cause to others and property. That money often comes directly out of their bank accounts.

If you’re a good driver who has never been in a car accident before and can’t imagine ever causing a crash, you may be wondering why you need to buy liability coverage at all. Roughly 13% of Louisianans, or one in every eight drivers, don’t have car insurance. This puts our state on par with the national average.

But did you know that not carrying any auto insurance means that you may lose out on the chance to get any compensation for a crash, even one that wasn’t your fault?

What “No Pay, No Play” Means for Louisianans

Louisiana’s No Pay, No Play statute, passed in 2011, states that victims of another driver’s negligence are prevented from collecting the first $15,000 of bodily injury damages and the first $25,000 of property damages if they’re uninsured at the time of the accident.

Why did legislators do this? Very simple: they want to encourage people to buy insurance. The state hopes to reduce the number of uninsured drivers on the road by creating limits on recovery. This shift in financial responsibility from insurance providers and the court system to individuals has drawn some criticism.

There’s concern that it unfairly punishes people who have legitimate reasons for not having insurance. An example, there may be someone who simply can’t afford insurance and is also a victim of negligence or recklessness.

Fortunately, there are several important exceptions to the law that may help in those cases, particularly for passengers and victims in situations involving criminal behavior by the at-fault driver.

Exceptions to No Pay, No Play in Louisiana

Here are the exceptions to Louisiana’s No Pay, No Play law from La. R.S. § 32:866:

  • At-fault Driver Convicted of DUI: If the other driver gets a DUI/DWI and is convicted, the uninsured driver can recover damages.
  • Intentionally Caused Accident: If the other driver crashed intentionally, no limits apply.
  • Hit-and-Run: When the at-fault driver leaves the scene of the accident, uninsured drivers still may recover without limitation.
  • Driver Committed a Crime: If the driver is committing a crime or fleeing the scene of their crime at the time of the crash, no recovery limits apply.
  • Vehicle Legally Parked: If your uninsured vehicle was legally parked during the accident, the limits will not apply to you.
  • Passenger in Uninsured Vehicle: Unless they own or co-own the vehicle, a passenger can recover compensation fully, even if the vehicle was uninsured.
  • Out-of-State Drivers: If your home state (where you are licensed to drive) doesn’t require minimum liability insurance, Louisiana’s limits do not apply to you.

If you have questions about how this law may impact you, contact our legal team today. We’re here to help.

Can I Still Get Compensation If I Don’t Have Auto Insurance?

If you are seriously injured in a crash caused by someone else but you don’t have auto insurance, you can still get compensation in some circumstances.

The law prevents you from collecting the first $15,000 of medical expenses and the first $25,000 of vehicle repair and other property damage (it’s not a coincidence that those are the minimum amounts everyone is required to purchase), but for any expenses over that, you may still be able to receive compensation.

For example, imagine you get into a crash that was not your fault, and now have $25,000 worth of medical bills. If you do not have liability insurance, the No Pay, No Play law will require you to pay $15,000 of those bills out of pocket. But you can pursue the remaining $10,000 from the other driver’s liability insurance.

The Importance of Uninsured/Underinsured Motorist Coverage

All auto insurance providers in Louisiana are required to offer uninsured motorist (UM) coverage. Although drivers are not legally required to carry UM insurance, they are required to carry liability coverage.

However, we recommend purchasing uninsured/underinsured motorist coverage (usually packaged together) to ensure that you always have a way to get compensation after a crash, even if the other driver doesn’t have any insurance.

If you are in a crash caused by an uninsured driver, you may be left in the lurch for your accident-related expenses unless you have uninsured motorist coverage. This auto insurance coverage allows you to file a claim with your insurer if the other driver doesn’t have insurance and can’t pay.

Likewise, underinsured motorist (UIM) coverage provides you with the extra amount you need to cover medical expenses when the other driver only has the minimum amount of coverage and your expenses exceed that amount. For example, if the other driver only purchased the minimum amount of $15,000 in coverage, but you have $25,000 in medical bills, you would receive $15,000 from the other driver’s liability insurance and the remaining $10,000 from your underinsured motorist coverage.

Contact Dudley DeBosier Injury Lawyers for a Free Consultation

At Dudley DeBosier, our car accident lawyers fight for the rights of injured victims like you. It’s important to always get in touch with a lawyer if you were hurt or your vehicle was damaged in a crash, especially if you are unsure where the money will come from to pay your expenses. We’ll review the facts of your case and help you choose your next steps to maximize your chances of compensation.

Ready to speak to a lawyer? Call us today for a free consultation.