What is the "No Pay, No Play" law in Indiana

Drivers involved in car accident exchanging contact details.

Indiana’s No-Pay, No-Play law does not allow uninsured drivers to get non-economic damages from the at-fault driver’s insurance company. This statute applies only to uninsured drivers who have previously received citations for driving without insurance. Drivers who carry Indiana’s required levels of insurance, as well as those with no history of driving without insurance, can collect compensation beyond the financial losses that have resulted from the accident.

Because laws governing what accident victims may claim differ from state to state, it is vital to understand what compensation options are available in your situation after a car accident in Indiana. Working with an experienced Indiana car accident attorney can help you know what steps to take to pursue your full financial recovery.

What Are Non-Economic Damages?

In a claim for an injury you suffer in an accident caused by someone else, such as a car crash, insurance companies, and courts divide compensation into two broad categories: economic and non-economic damages.

Economic Damages

Economic damages refer to compensation for the tangible financial losses an accident victim has sustained. These losses may include medical bills, lost wages due to missed time at work, property damage, and assistive care.

Non-Economic Damages

On the other hand, non-economic damages address losses that do not have a clear financial aspect. These can include:

  • Physical and emotional pain and suffering
  • Emotional distress
  • Post-traumatic stress disorder (PTSD)
  • Depression
  • Anxiety
  • Loss of enjoyment of life
  • Disfigurement

Even though these losses have no specific dollar amount attached, they still have a significant effect on the lives of those who suffer injuries. As such, car accident victims are entitled to claim compensation for them.

Why Did Indiana Establish the No Pay, No Play Law?

Indiana established the No Pay, No Play law to incentivize drivers to carry auto insurance. The state has historically had a high rate of uninsured motorists, which places financial strain on insured drivers. When an insured driver causes an accident involving an uninsured driver, the insured driver’s insurance company typically pays the uninsured driver’s damages. This results in higher premiums for all insured drivers.

The No Pay, No Play law aims to discourage uninsured driving by limiting the ability of uninsured drivers to recover non-economic damages if they are injured in an accident. This law provides a financial incentive for drivers to carry the state’s legally required insurance coverage. It seeks to promote personal responsibility among motorists and protect insured drivers from bearing the costs of losses caused by uninsured motorists.

Male driver suffering head injuries from car accident in the road.

Does Indiana Have a Lot of Uninsured Drivers?

According to statistics from the Insurance Information Institute (III), about 16 percent of Indiana drivers are uninsured. This translates to roughly one in six drivers in the state.

Are There Exceptions to the Indiana No Pay, No Play Law?

There are exceptions to the “No Pay, No Play” law, including:

  • If the uninsured motorist is a driver under 18 who has a previous uninsured violation
  • If someone other than the uninsured driver, such as the passenger, suffers losses
  • If the collision was intentional
  • If someone other than the uninsured person was driving and was convicted of a crime related to the accident

Can the No Pay, No Play Law Affect My Car Accident Case?

If you are an uninsured driver who has previously been cited for driving without insurance, the No Pay, No Play law could substantially reduce the potential value of your injury claim. It is essential to consult with an attorney to understand how the law may impact your case.

If you are an insured driver or an uninsured driver without prior citations, you can pursue full compensation, including both economic and non-economic damages. The No Pay, No Play law does not restrict your ability to recover damages in an accident caused by another driver’s negligence. An Indiana car accident lawyer can help determine what compensation you have the right to and ensure you pursue it.

If I Am Uninsured, Are There Any Damages I Can Recover After a Wreck?

Even if you have had a previous uninsured driving violation, you still have the right to recover compensation for your economic losses if the other driver was at fault. These losses include:

  • Medical bills
  • Lost wages
  • Reduced earning capacity
  • Property damage

If you have never received a citation for driving without insurance, you can recover compensation for both economic and non-economic damages.

What Happens If the Other Driver Also Has No Insurance?

If you are involved in an accident caused by another uninsured driver who is subject to the No Pay, No Play law due to previous citations, it may be challenging to recover significant compensation. Neither party would be able to claim non-economic damages, which make up a major component of many injury claims.

Without your own uninsured/underinsured motorist coverage, it becomes difficult to recover damages from an uninsured at-fault driver. Discuss your options with an attorney if you are involved in an accident with an uninsured driver.

What Are the Minimum Insurance Coverage Requirements in Indiana?

Indiana requires all car owners to carry a minimum of:

  • $25,000 in bodily injury liability per person
  • $50,000 in bodily injury liability per accident
  • $25,000 in property damage liability per accident

Does Indiana Have a Time Limit for Filing a Car Accident Claim?

Indiana’s personal injury statute of limitations allows injured individuals to file a lawsuit within two years of the accident date. Investigating the accident, determining who was at fault, and negotiating with the insurance company can take longer than most people realize. Contacting a personal injury attorney as soon as possible can give you time to take all the necessary steps before this period expires.

Contact an Indiana Car Accident Lawyer

If another person’s actions caused you to suffer injuries in a car accident, you deserve to claim compensation. Even if you were uninsured at the time of the crash, you may still be eligible to recover significant compensation. Working with an Indiana car accident attorney can help you understand your options. The experienced team at Truitt Law Offices will fight aggressively for the maximum compensation available to you. Contact us today for a free consultation to learn more about how we can help you.

Contact Our Indiana Car Accident Law Offices

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About the Author

As an attorney who has practiced law in Northeast Indiana for nearly four decades, Richard Truitt has seen many changes in the way personal injury and wrongful death cases are handled. However, at least one aspect of his work has remained the same. “You always have to listen to your clients, and you have…