HB 434: How the No Pay, No Play Rule is Changing in Louisiana

On May 28, 2025, Louisiana enacted House Bill 434 (HB 434). This new law, which will come into effect August 1, 2025, increases the amount for which drivers must be insured in order to sue other drivers.

The Law as it Currently Stands

Louisiana law requires a minimum liability insurance policy for every vehicle. The minimum liability limits are as follows:

$15,000.00 per person for bodily injury
$30,000.00 per accident for bodily injury
$25,000.00 per accident for property damage

Even before the enactment of HB 434, Louisiana law limited the ability of uninsured drivers to recover damages. This law has been coined the “No Pay, No Play” law. Under it, uninsured drivers couldn’t recover the first $15,000 for bodily injuries and the first $25,000 for property damage, even if the other driver was entirely at fault.

How HB434 Will Change the No Pay, No Play Law

HB 434 significantly increases these No Pay, No Play thresholds: Uninsured drivers are now barred from recovering the first $100,000 in damages for bodily injuries and the first $100,000 for property damage.

In other words, an uninsured driver involved in an accident could be personally responsible for up to $200,000 in damages before being eligible to recover any compensation.

HB 434 also provides that if an uninsured driver sues and is awarded damages equal to or less than $100,000, they will be responsible for all court costs. This provision further discourages uninsured drivers from pursuing legal action for minor claims.

Why This Matters

Supporters of HB 434 argue that the law promotes fairness and accountability. By imposing stricter penalties on uninsured drivers, the legislation aims to motivate drivers to obtain and maintain the required insurance coverage. HB 434 also seeks to protect insured drivers from bearing the costs of accidents involving uninsured motorists. Ultimately, lawmakers hope that HB 434 will lower Louisiana’s insurance premiums, which are among the highest in the nation.

With HB 434 set to take effect on August 1, 2025, it’s more important than ever for Louisiana drivers to have auto insurance coverage. Failing to do so could result in significant financial consequences in the event of an accident.