What Is Indiana’s “No Pay, No Play” Law and How Does It Affect the Uninsured?
Most drivers tend to assume they will file a claim against the at-fault driver after an accident to recover compensation for their damages. However, this is not always the case. Who the injured victim seeks compensation from will depend on the fault laws of the state that they live in.
In Indiana, car accidents and other types of personal injury claims are handled based on Indiana’s at-fault laws. This means that when you are injured in an accident, you will file a claim or even a lawsuit against the guilty driver’s insurance company to recover damages. However, Indiana’s newly added “No Pay, No Play” law changes the situation, and it can negatively affect your claim.
If you or a loved one are injured in an accident and need help understanding the law and filing a claim, contact the experienced Indianapolis car accident attorneys at Poynter & Bucheri Accident Recovery. We will review your case and offer you guidance to ensure the best possible outcome.
How Fault and Negligence Traditionally Works in Indiana
Again, Indiana is an at-fault state. So if a person becomes injured in an accident, this means that they would file a claim first against the guilty party’s insurance to recover compensation for their damages, such as medical expenses and lost wages. This fault system is based on the belief that it is unjust to make someone go through their own insurance to get compensation if they were not to blame for the accident.
Furthermore, this allowed individuals to file against the guilty driver whether they carried their own insurance or not. They can even file against the other driver if they share in some of the liability. So long as the injured victim is less than 51% at fault, they have the right to recover damages from the other party’s insurance.
Damages That Injured Victims Can Normally Recover
When we talk about recovering damages, what we mean are the losses and the things that the victim has suffered as a result of the accident. This includes economic and non-economic damages.
- Economic damages represent losses or expenses that are calculable, such as:
- Medical bills and expenses
- Lost wages
- Loss of future earning potential
- Car damages and repairs
- Non-economic damages represent losses that are more intangible and not as easy to calculate, such as:
- Physical pain and suffering
- Emotional distress
- Scarring and disfigurement
- Permanent impairment
- Loss of enjoyment of life
- Loss of companionship
It is important to understand the difference between these two types of damages because they are affected by the new “No Pay, No Play” law.
What is Indiana’s “No Pay, No Play” Law?
This new law, which went into effect in 2015, primarily affects uninsured drivers. The “No Pay, No Play” law states that an uninsured person injured in a car accident may not recover non-economic damages from the guilty party. Even if the injured person is not at fault and carries none of the blame, they still may not file to recover non-economic damages. They can still, however, recover economic damages.
This law was essentially established to prevent habitual rule-breakers who are uninsured from getting the same privileges as those who do pay for insurance and abide by the law. Again, they can still recover economic damages, but in many cases, the non-economic damages are just as essential and can make up a significant part of the settlement amount.
There are, however, some exceptions to the “No Pay, No Play” law:
- First-time uninsured offenders are still eligible. The law only applies to those who have been previously cited for not carrying car insurance.
- The “No Pay, No Play” law does not apply to those who are under the age of 18.
- If the other driver is convicted of a crime in connection to the accident, such as drunk driving, the “No Pay, No Play” law does not apply, and the injured victim may still file a claim for economic and non-economic damages.
- The injury or damage was intentionally caused.
How Will the New “No Pay, No Play” Law Affect My Car Accident Case?
If you are uninsured and have been previously cited for this offense, you will not be able to recover non-economic damages from the at-fault driver’s insurance. However, this will not stop you from being able to file a claim altogether. You can still file a claim so long as you are no more than 51% at fault and recover damages from the other party.
You could also file a lawsuit against the other driver to recover additional compensation if you do not receive enough from the economic damages. This is also an option if the other driver does not carry insurance either. If neither of you carries insurance, the only other way to get money is through a lawsuit. However, keep in mind that if you file a lawsuit, it means the other driver can also file a lawsuit against you to retaliate.
The best way to protect yourself and ensure you can recover the compensation you deserve should you be involved in an accident is to carry insurance in compliance with your state laws.
All drivers in Indiana are required to carry the following minimum insurance coverage:
- $25,000 for bodily injury of a single person
- $50,000 for total bodily injury of all persons involved
- $25,000 for property damage per accident
Consult With an Indianapolis Personal Injury Attorney
Navigating a personal injury claim after a car accident can be confusing and overwhelming. It can be an especially scary experience if you are uninsured. If you have questions or concerns and need help with your accident case, the team at Poynter & Bucheri can assist you.
It’s always best to carry insurance in compliance with state laws, but even if you do not, we can still help you file a claim or even a lawsuit to ensure the best possible outcome. Our goal is to help guide you through the process to make it as painless as possible.
Don’t hesitate — one of our experienced attorneys can assist you right away. Call 1-800-265-9881 for a free case review.