Oklahoma City, Oklahoma (WiredPRNews.com) Lawmakers in three state legislatures are considering enacting no-pay, no-play car insurance laws that would limit the damages that uninsured motorists could recover after an accident that was not their fault.
No-pay, no-play laws were first introduced in the mid-1990s. In their most common form, they block uninsured motorists for recovering funds from insurance companies for non-economic damages—such as pain and suffering awards—while still allowing them to recover the costs of their medical bills, lost wages and property damage.
Proposals are currently on the tables in the state legislatures of Montana, Oklahoma and Minnesota.
The Property Casualty Insurers Association of America has reported to the Montana Legislature that Alaska, California, Iowa, Louisiana, Michigan, North Dakota, Oregon and New Jersey auto insurance laws all currently include no pay, no play provisions, though the specifics of the laws vary.
Louisiana’s law is most different from the standard. The provisions there were amended in 2008 so that drivers who lack auto insurance and get into a serious accident—instead of being barred from receiving pain and suffering awards—are prohibited from recovering the first $15,000 of bodily injury damages as well as the first $25,000 in property damages that they sustain in an accident.
Most of the no-pay, no-play laws include exceptions for accidents that were caused by a drunk driver.
To learn more about this and other car coverage issues, readers can go to http://www.onlineautoinsurance.com/new-jersey/ where visitors will have access to informative resource pages and a quote-comparison generator that can help consumers get a quick and comprehensive view of their pricing options.