According to the Insurance Research Council (IRC), about 14% of all motorists in the United States are uninsured, or nearly one in seven drivers. States with a high number of uninsured drivers also tend to have higher insurance costs. That`s because accidents caused by uninsured drivers cause insurance companies to lose money. Opponents of non-payment and non-gambling claim that the reason uninsured drivers don`t have insurance is because they can`t afford it, and the law simply penalizes people who are already in a difficult financial situation. Unlike Louisiana, many states with non-payment and no-play restrictions on auto insurance claims (and lawsuits) only apply to non-economic damages. These include things like pain and suffering, mental anguish, and loss of companionship. Economic damage, actual medical bills of the uninsured motorist and property damage are generally still recoverable in these jurisdictions. For example, if you incur $25,000 worth of medical bills after an accident for which you are not at fault, but you do not have liability insurance, the No Pay, No Play law means that you have to pay $15,000 out of pocket, but you can track the remaining $10,000 of the other driver`s liability insurance. In California, Proposition 213, commonly known as the “No-Pay No Play” law, prevents uninsured drivers from receiving compensation for immaterial damage caused by the negligence of other drivers.
States have no intention of paying, no gambling laws, to assert that all drivers must comply with state financial responsibility laws. And the Insurance Research Council has estimated that states that enact such laws are seeing a decline in their rate of uninsured motorists. Barrios & Machado will fight aggressively for you and your family. We will review your case and inform you of your options. Call us now at (714) 515-9696 for advice. This auto insurance coverage allows you to file a claim with your own insurer if the other driver doesn`t have insurance and can`t pay. Economic damage is that which has a certain monetary price. They may include medical treatment, property damage, lost wages, and other items that can be quantified and have a fixed value. Filed Under: Questions and Answers Tagged With: Car Accidents, Motorcycle Accidents, No Pay No Play States, Uninsured Motorists California is a “No-Pay No-Play” state, along with several other states. The Act is intended to encourage drivers to insure themselves and meet their financial obligations to the Crown. Even in states without pay and gaming laws, uninsured drivers are usually able to compensate for economic damages such as actual medical bills and property damage. Restrictions generally apply to non-material damages such as pain and suffering or other emotional distress.
States that do not follow the system regardless of responsibility are considered tortious States. In an unauthorized condition, the person who caused the accident is liable for the damage. If you have caused an accident and do not have insurance, you will have to pay for the damage out of your own pocket. If you can`t pay, a court decision might consider options such as liens on your property or garnishment of your wages until damages are paid. If you live in a no-fault insurance state, you will seek compensation from your own insurance company after a car accident, regardless of who is at fault. If you are the guilty driver, the injured person will make a claim against their own insurance policy – not yours. However, if the cost of their injuries exceeds a certain amount, it may be possible for the injured person to claim an amount in excess of their own insurance limits. If you don`t have insurance to cover it, you may be responsible for paying out of pocket. If you have questions about whether this law affects you after a car accident or whether any of these exceptions apply to you, contact our legal team today. We`re here to help.
However, we recommend that you purchase uninsured or underinsured motorist insurance (usually bundled) to ensure you always get compensation after an accident, even if the other driver does not have insurance. The best way to avoid being 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 money before you give up coverage altogether and put yourself in a bad situation. Answer: Most states have severe penalties if you are caught without insurance, especially if you have an accident. States with “No Pay, No Play” laws go even further by prohibiting uninsured motorists from being compensated for certain items, even if they were not at fault for the accident. Immaterial damages are those that do not entail specific costs. It can be pain and suffering, loss of consortium, emotional distress or punitive damages. If you are seriously injured in an accident caused by someone else, but you do not have auto insurance, you can still get compensation in certain circumstances. However, the list could soon grow again as more states like Nevada consider proposals from lawmakers that would change their laws to limit the compensation you could get if you`re uninsured at the time of a car accident.
Uninsured motorists are seen as a problem, not only on the road, but also for regulators.
