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How Do Indiana’s “No Pay, No Play” Statutes Impact Uninsured Drivers?

Back in 2015, the Insurance Research Council published a report showing that one out of every six Indiana drivers had no insurance, the eighth highest percentage of any state in the country. Indiana lawmakers knew that even though driving uninsured was already illegal, they had to do something to more discourage the behavior. They came up with a set of laws known as the “no pay, no play” statutes.

These laws prevent an uninsured motorist with a previous violation of the state’s insurance requirements from collecting certain types of financial compensation if they are involved in a crash with an insured driver. This is thought to encourage drivers to buy insurance because without it they risk not being fully compensated if they get hurt in an accident.

The no pay, no play laws apply to drivers who are uninsured at the time of an accident and have been cited for driving without insurance within the last five years.

These laws provide that:

  • An insured driver’s carrier may avoid paying non-economic damages to an uninsured motorist who has a previous violation for driving without insurance.
  • An uninsured motorist with a previous violation is barred from obtaining non-economic damages in a personal injury lawsuit against the insured driver.

The bar on recovering non-economic damages is important because non-economic damages can make up a significant part of a jury verdict or settlement amount. When you hear about someone recovering millions of dollars in a personal injury lawsuit, it’s safe to say that most of that money was for non-economic damages. These include:

  • Pain and suffering
  • Physical impairment
  • Mental anguish
  • Emotional distress
  • Loss of consortium
  • Loss of enjoyment of life

The no pay, no play laws do not affect an uninsured motorist’s right to recover economic damages after an auto accident. If the uninsured driver is found to be less than 51 percent at fault for the wreck, they can seek reimbursement from the insured driver’s insurance company for their:

  • Lost wages
  • Medical bills
  • Costs to repair or replace the damaged car

There are other nuances and limits to the no pay, no play law, so before reaching any conclusions about how the law could affect you, it’s best to consult with an experienced Indiana auto accident lawyer.

Rubino, Ruman, Crosmer & Polen is a full-service personal injury law firm based in Dyer. Our skilled auto accident attorneys are ready to speak with you about the no pay, no play law and how it could impact your situation. Call [ln::phone] or contact us online to arrange a free initial consultation.

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