{"id":6895,"date":"2022-08-09T13:51:35","date_gmt":"2022-08-09T13:51:35","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=6895"},"modified":"2025-05-06T00:35:08","modified_gmt":"2025-05-06T00:35:08","slug":"what-does-no-pay-no-play-mean-in-auto-insurance","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/what-does-no-pay-no-play-mean-in-auto-insurance\/","title":{"rendered":"What Does No Pay, No Play Mean Regarding Auto Insurance?"},"content":{"rendered":"\n

No Pay, No Play statutes limit or restrict the rights of uninsured motorists to financially benefit from lawsuits for accidents caused by drivers who are carrying the legal amount of car insurance<\/a>.  <\/p>\n\n\n\n

These ordinances aren\u2019t in every state in the U.S., and the details vary from state to state where these laws are in effect. But basically, it means that you can be restricted from receiving financial settlements for accidents that are the fault of someone else when you are behind the wheel without carrying a valid car insurance policy. <\/p>\n\n\n\n

Let\u2019s take a closer look. <\/p>\n\n\n\n

What Does No Pay, No Play Do? <\/h2>\n\n\n\n

It\u2019s a way of encouraging all drivers to always have auto insurance by removing the uninsured driver\u2019s ability to financially gain in various ways from an accident that was the fault of another driver. <\/p>\n\n\n\n

It plays out in different ways in different states, but imagine the following scenario: a drunk driver plows into several cars<\/a> on a highway and sets off a dozen chain reaction accidents. Several drivers were hurt, and they successfully sued the insurance company of the at-fault driver. However, one of the victim drivers is unable to participate in the lawsuit because the victim is an uninsured motorist. Therefore, this driver is unable to join in any financial settlement along with the others who were injured. <\/p>\n\n\n\n

In many cases, No Pay, No Play prohibits uninsured drivers from receiving any compensation from the at-fault driver\u2019s insurance company for basic property damage (damage to their vehicle) and any injuries or medical bills. <\/p>\n\n\n\n

Why Are No Pay, No Play Statutes in the Books? <\/h2>\n\n\n\n

The purpose of the No Pay, No Play laws is to encourage all drivers to get and maintain car insurance. While this form of coverage is mandatory in all but two U.S. states, many drivers disregard it and drive while uninsured. It\u2019s estimated that in some states, as many as roughly 25 percent of motorists are not carrying auto insurance. <\/p>\n\n\n\n

The thinking behind No Pay, No Play state laws<\/a> is that these individuals who have illegally opted out of the system, making insurance most costly for drivers complying with insurance regulations, should not be able to benefit from a settlement \u2014 or, in some states, be at least partially restricted from benefiting. <\/p>\n\n\n\n

What States Carry No Pay, No Play Laws?<\/strong> <\/p>\n\n\n\n

Currently, you\u2019ll find variations of this statute in these 11 U.S. states: <\/p>\n\n\n\n