Auto-Accident 101: About No-Pay, No-Play Law in California

California law makes it mandatory that all drivers have insurance coverage. You need to show that your car is insured in the Golden state; otherwise, you won’t get as much compensation as you could if your car was insured. The reason is that the ‘no-pay, no-play’ law, also known as Proposition 213, limits the amount paid by the other driver’s insurance company. Here we will shed more light on this no-pay no-play law so you know your exact rights in such a situation.

About the No-Pay No-Play Law in California

State laws in California put a limit on the compensation uninsured drivers can collect for damages sustained due to the negligent actions of an insured driver.  The introduction of Proposition 213 in 1996 limited the amount of compensation that can be recovered by uninsured drivers. The law specifically prohibited an uninsured driver from suing a person at fault for ‘non-economic’ losses sustained due to negligent behavior of another.

Notice that we have stated ‘non-economic’ losses. This means that the driver in the state can still recover economic losses such as repair bills and medical bills. They are barred only from suing for non-economic damages like physical pain or psychological suffering.  Even in case of the economic losses, the no-pay no-play law in California i.e. Prop 213 requires uninsured drivers to deduct $10,000 before they can sue the driver at fault for property damage.

Other Consequences of Not Being Insured when Driving

Apart from limited compensation in case of an auto accident caused by another driver, the uninsured driver will have to face an administrative per se hearing in the form of suspension of their driving license of unto four years. Also, the insurance cost will be higher when the driving license is restored. The aim of the law is to fine people who don’t apply for insurance and keep all drivers insured to allow compensation to others when it is needed and due. Also, this law applies to driving under the influence (DUI) and fleeing from a scene of the crime.

Hire a Professional Auto Accident Attorney in Orange County

Hiring an experienced auto accident attorney in Orange County is important to maximizing your compensation in case of getting injured in an auto accident. Even if your car is not insured, you should consider getting the help of a qualified attorney as it will help in maximizing the economic compensation you can receive for the injury sustained due to the fault of another car driver.

Auto accident injuries can result in massive amounts of medical bills. The cost of repairing a damaged car can add to the financial burden. While you may not get compensation for non-economic losses, you should still sue the negligent party responsible for the accident. A qualified lawyer will provide you invaluable advice on how to maximize the payment for economic losses suffered due to the negligent behavior of the other driver.

If you reside in Santa Ana, or any other place in Orange County, CA, you should contact Shield Litigation, LLP law firm regarding your car accident case. You can get in touch with one of our attorneys by dialing (714) 728-3385 for more information regarding auto accident compensation. We are devoted to offering the best possible advice to our clients to recover damages in case of a car accident.