Louisiana House Bill 434: What Act No. 16 Means for Property Owners

On May 28, 2025, Governor Jeff Landry signed House Bill 434 into law. Effective August 1, 2025, this legislation—now Act No. 16—makes significant changes to Louisiana’s “No Pay, No Play” auto insurance statute, dramatically increasing the financial consequences for uninsured drivers involved in car accidents.

What Is the “No Pay, No Play” Law?

Louisiana’s “No Pay, No Play” law limits the ability of uninsured drivers to recover damages if they’re injured or their property is damaged in a motor vehicle accident—even if the accident is not their fault.

Before the passage of HB 434, uninsured drivers could not recover the first:

• $15,000 of bodily injury damages, and

• $25,000 of property damage.

Key Changes Under House Bill 434

Starting August 1, 2025, those limits will increase significantly:

• Bodily Injury Recovery Bar: Raised from $15,000 to $100,000

• Property Damage Recovery Bar: Raised from $25,000 to $100,000

In Other Words:

Uninsured drivers cannot recover:

• The first $100,000 of bodily injury damages, and/or

• The first $100,000 of property damage

unless their damages exceed those thresholds.

For example, if an uninsured driver suffers $95,000 in medical bills due to an accident caused by another driver, they would receive no compensation for their injuries.

Court Cost Penalties for Uninsured Litigants

In addition to raising the financial recovery thresholds, the new law also states that uninsured plaintiffs who file a lawsuit and are awarded $100,000 or less in damages will be required to pay court costs incurred by all parties in the action. This applies regardless of fault.

Who Is Affected?

• Uninsured Drivers: The law targets those operating without valid auto insurance in Louisiana.

• Insured Drivers: These changes protect insured drivers and may reduce liability exposure in lawsuits filed by uninsured claimants.

Why This Matters

This law raises the stakes for Louisiana residents who choose to drive without insurance. It creates a strong incentive for all motorists to maintain proper coverage—not only to comply with state law but to preserve their right to full recovery if injured in an accident.

Legal Help for Auto Accident Claims in Louisiana

If you or a loved one has been involved in a motor vehicle accident and have questions about how this new law might affect your rights, contact Godbey Giardina Law Group today. Our team is here to guide you through the legal landscape and protect your interests under Louisiana law.

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