What Happens if I Get Injured in a Louisiana Car Crash but My Insurance Has Lapsed?

Woman drivers call insurance after a car accident before taking pictures and sending insuranceYou may be surprised to learn that a lapse in your insurance coverage could affect your ability to recover full compensation for a crash, even though another driver caused the crash. That is why Louisiana drivers must make sure they have valid insurance coverage before getting behind the wheel, as you never know when a crash may occur.

Below, our experienced Lafayette-based auto accident lawyers discuss Louisiana’s “No Pay, No Play“ Law and how it can affect a claim for compensation.

Our attorneys have been helping Louisiana crash victims secure compensation for decades. There are no upfront costs for our services, and our clients do not pay unless they receive compensation.

Call Galloway Jefcoat: 337-984-8020. Turning Wrong Into Right.

What is the Louisiana “No Pay, No Play” Law?

In Louisiana, the “No Pay, No Play” Law does not allow uninsured and under-insured drivers from collecting the initial $15,000 in personal injuries and the first $25,000 in property damages. Under this law, you may waive your right to make a claim for pain and suffering if you have economic-only uninsured motorist coverage.

What Are the Minimum Auto Insurance Requirements in Louisiana?

In Louisiana, you are required to have liability coverage on any automobile you own. In this coverage, you and those covered in the policy must pay for property damages or personal injury.

Below are the types of payments that liability coverage provides:

  • $15,000 for injuries to one person
  • $30,000 for bodily injury that involves more than one person in a single accident
  • $25,000 for damages to someone else’s vehicle or other property

Remember, Louisiana does not require you to have full coverage to recover a claim from a negligent driver. Personal injury protection is also not required. While higher liability limits are beneficial, liability coverage still meets Louisiana standards and helps drivers keep their insurance premiums down.

Can I Still File a Claim With the Other Driver’s Insurance Company?

Yes, you can still file a claim. However, you may be liable for fines if you drive without insurance. Your settlement amount could be reduced by fines.

Consult with an attorney for any questions that you may have about your specific case. Every scenario is different, so there are various legal actions that a lawyer could take to help you receive a claim.

Can Injured Passengers Still Pursue Damages if the Car Owner Is Underinsured?

Passengers can file a claim with the at-fault party if they have insurance. In some cases, the at-fault party may not have insurance.

Passengers can then file a claim with their own insurance company’s uninsured/underinsured motorist coverage. This protection is used when an at-fault party does not have insurance. It can assist passengers with recovering medical expenses and other losses.

Other options that passengers have for filing a claim:

  • They can obtain a settlement from the driver/owner of the car they were riding in if they have insurance.
  • They can sue the responsible driver for additional costs.

It is important to note that passengers may not be able to receive a claim from the responsible driver if they do not have insurance. Passengers can still file a lawsuit but may not receive a settlement if the at-fault party has no assets.

What if the Other Driver is Uninsured?

If both parties are uninsured in a car accident, recovering a claim could be challenging. It is uncertain where compensation would come from.

Victims May Be Able To Recover Policy During Grace Period

When car crash victims’ policies lapse, they risk not receiving the maximum claim amount. However, they can still recover their policy by calling their insurance company and paying the remaining premiums.

Some insurance companies will provide a grace period for coverage lapse due to non-payment. Typically, a grace period is 10 to 20 days from payment date. The benefit of the grace period is that you have time to pay premiums in full.

If you can reinstate your policy and have uninsured motorist coverage, you may be able to file a claim with your own insurance company. This claim could help you to cover medical expenses, property damages, and more.

Seeking Compensation From Umbrella Insurance

Car crash victims can seek compensation through the at-fault party’s umbrella insurance. This protection covers more than car insurance. It could be used to cover any damages related to an accident.

Unfortunately, if the other party does not have insurance and is at fault you may have to pay for the loss of damage and more. You may be able to file a lawsuit, but in some cases, the at-fault driver would not have the finances to cover your expenses.

Discuss your legal options with a lawyer to fully understand what steps you may take to move forward.

What Are the Consequences of Driving Without Insurance in Louisiana?

In Louisiana, you could be subject to pay between $500 and $1,000 for operating a vehicle without insurance. Other penalties for uninsured drivers include license suspension, an impounded vehicle and a revoked registration for 180 days.

Drivers who falsely claim that they have insurance are committing fraud. For example, if you give a police officer a false insurance document at the time of the accident, you can face serious consequences. You could get your license revoked for 12 to 18 months if caught.

Contact Our Lawyers If You Have Been Injured In a Car Accident

Were you injured in a car accident while having a lapsed insurance policy?

Galloway Jefcoat may be able to help you navigate the legal process. We understand that recovering expenses under these circumstances can be an obstacle. Our team of attorneys is here to answer all your legal questions. If we represent you there are no upfront costs or legal obligations.

Schedule a free case review today: 337-984-8020.