Louisiana’s ‘No Pay, No Play’ Law Explained

One mistake on auto insurance can change the whole outcome of a crash claim. Louisiana’s “No Pay, No Play” law limits what an uninsured driver can recover after a wreck, even if the other driver caused it. At Shlosman Law Firm in New Orleans, we help injured individuals and families push back against unfavorable outcomes and hold insurers accountable for their legal obligations.

In this article, we explain what the statute states, how the new 2025 thresholds work, and where exceptions apply. You will also find quick steps to take after a collision and learn how we can assist you if you find yourself in this situation.

What is Louisiana’s ‘No Pay, No Play’ Law?

The law is found in Louisiana Revised Statutes section 32:866. It limits an uninsured or underinsured driver’s right to collect money after a crash, even when another driver is to blame. In short, if you do not carry the legally required liability insurance, your recovery gets reduced by a set amount.

Louisiana’s minimum liability coverage to avoid being treated as uninsured is:

• $15,000 for bodily injury per person
• $30,000 for total bodily injury per accident
• $25,000 for property damage

Failing to carry these minimums can severely limit what you can collect from the at-fault driver’s insurer. For crashes on or after August 1, 2025, the law increases the reduction to a much higher threshold.

Comparison of Past and Updated “No Pay, No Play” Rules

The table below highlights the older limits and the new rules that apply to accidents on or after August 1, 2025.

Category	Before Aug. 1, 2025	On or after Aug. 1, 2025	Notes
Bodily injury reduction for uninsured drivers	$15,000	$100,000	Applies even if the other driver caused the crash
Property damage reduction for uninsured drivers	$25,000	$100,000	Vehicle repairs and other property losses
Minimum liability coverage to avoid being “uninsured”	$15,000 per person BI, $30,000 per accident BI, $25,000 PD		Carried at the time of the crash
Additional court cost risk for uninsured claimants	N/A	Possible if an award is $100,000 or less	Per 2025 legislation

 

Those numbers show how an insurance gap can wipe out a large slice of your claim. Next, let’s look at how this plays out in day-to-day claims.

How ‘No Pay, No Play’ Works

For accidents on or after August 1, 2025, an uninsured driver cannot recover the first $100,000 in bodily injury damages or the first $100,000 in property damage. The rule covers most motor vehicles in Louisiana, including cars, trucks, and motorcycles. The critical issue is whether you were operating a motor vehicle without the required insurance at the time of the crash.

Here is a simple example. Another driver rear-ends you, and your medical bills total $18,000. If you had no required insurance at the time, you can recover $0 for medical expenses under the updated law, since the first $100,000 of injury damages is not recoverable.

The rule applies regardless of fault, which catches many people off guard. That means a careless driver can hit you and still face this penalty if your policy was not in place.

Exceptions to the ‘No Pay, No Play’ Law

There are several situations where an uninsured person can still recover full damages. These carve-outs matter, and they can change a case that otherwise looks blocked. A quick review of the most common exceptions is below.

Exceptions to the Louisiana No Pay No Play Law Include:

• The other driver is intoxicated and convicted of driving under the influence, violating Louisiana Revised Statutes 14:98.
• The other driver intentionally caused the crash.
• The other driver fled the scene of the accident, a hit-and-run.
• At the time of the accident, the other driver was engaged in the commission of a felony offense under the law.
• The injured person was a passenger in the uninsured vehicle and did not own it.
• The injured driver was operating a parked vehicle that was legally stopped at the time of the accident.
• The driver of the “uninsured” or “underinsured” vehicle was from another state with different insurance minimums and had their state’s required coverage at the time of the crash.

If any of these apply, the damage cap can be lifted, and full recovery becomes possible. Our team can review the facts and determine whether one of these exceptions applies to your case.

Steps to Take After an Accident if Uninsured

If you were involved in a Louisiana crash without insurance, protect your rights immediately. Careful action can preserve evidence and help you prove an exception or maximum damages. Even small details matter later on.

Recommended Steps:

• Document the scene with photos and videos of damage, injuries, and road conditions.
• Get witness information to support your version of events.
• Seek medical care immediately and keep all treatment records.
• Consult a personal injury lawyer to determine whether an exception to “No Pay, No Play” applies.

Insurance carriers often challenge uninsured claims, and delays can hurt your case. Quick guidance helps you avoid missteps and focus on recovery.

Contact Shlosman Law Firm for Assistance

If the No Pay, No Play rule is hanging over your claim, we can step in and help. Feel free to call 504-826-9427, email info@shlosmanlaw.com, or visit our website to set up a consultation. We work hard and fight insurers with steady, focused advocacy, aiming for a result that truly helps you move forward. We welcome your questions and will put in the work your case deserves.