Most people search for ways to reduce expenses. We search for the gas station with the least expensive fuel, we adjust the air conditioner when leaving the house, and we turn off the lights when leaving a room. This is a normal part of managing a budget. However, one area that should not be cut is auto insurance, as there are real dangers associated with electing not to purchase it.

If you’ve been involved in a car accident, not having auto insurance could have a very negative impact on your case. The reason is found in Louisiana’s “No pay, No play” statute. The statute bars uninsured and underinsured drivers from collecting the first $15,000 of bodily injury damages and the first $25,000 of property damages – even if the other driver is at fault.

For example, if you incur $30,000 in property damages due to an accident, you would only be able to recover $5,000 from the at-fault driver’s insurance company. Likewise, if you incurred $10,000 in bodily injury damages, you would not be able to collect anything from the at-fault driver’s insurance company.

Fortunately, there are some exceptions to the “No Pay, No Play” rule. For example, the rule does not apply if the at-fault driver was under the influence of alcohol and convicted of a driving while intoxicated. It also doesn’t apply if the at-fault driver intentionally caused the accident, fled the scene, or was furthering the commission of a felony when the accident occurred.

There are additional exceptions to the “No Pay, No Play” rule. If you’ve been involved in an accident, contact The Nordgren Law Firm, LLC, to get a better understanding of how this rule could impact your case.