If you’re driving without auto insurance, thinking the other guy is going to take care of you if you are in an accident, think again. Many states have enacted No Pay, No Play car insurance laws that restrict an uninsured driver’s ability to recover most forms of compensation after a car accident, even if the accident was caused by someone else.
What Are No Pay, No Play Car Insurance Laws?
No Pay, No Play has been instituted by some states as a way to address the very real problem of uninsured motorists. The reasoning behind the creation of these types of laws is that if you drive without auto insurance you are putting yourself and the rest of the public at risk if you cause an accident or damage to someone else’s property. Therefore, you shouldn’t be able to collect when someone else, who has insurance, is at fault. To some, drivers without auto insurance are being unfair and putting undo burden on those who play by the rules.
Where Are No Pay, No Play Auto Insurance Laws in Effect?
No Pay, No Play laws vary by state. But, these states have some form of No Pay, No Play laws on their books:
- North Dakota
- New Jersey
What Kinds of Pay Are Affected?
Even if someone else is at fault, if you are uninsured in a No Pay, No Play state, generally, the other party is only liable for your medical bills. You lose the right to sue for other damages such as pain and suffering, lost wages or property damage.
Are There Exceptions?
In some states, there are exceptions to the No Pay, No Play law. In Missouri, for instance, if a drunk or otherwise impaired driver causes the accident, the No Pay, No Play law does not apply. Another potential exception is if your coverage was cancelled by your insurance company without at least six months’ notice. In Oregon, the No Pay, No Play law doesn’t apply if the driver who caused the accident was committing a felony or can be deemed to have acted recklessly or intentionally. Iowa uses this situation exclusively, as the law only applies to drivers injured in an automobile accident during the commission of a felony.
Is it Time to Get Auto Insurance?
No Pay, No Play laws are a state’s way of letting drivers know that using the car insurance system and benefiting from the collection of claims should be a two-way street.
You may feel like you’re saving money, but one wrong move could mean financial ruin. Driving without car insurance can be more expensive than you think. So, if you’re in need of car insurance, stop gambling with your financial health. InsuranceWins makes it fast and easy to find affordable car insurance for everyone.