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No Pay No Play Laws

No-Pay, No-Play Laws

Definition

State laws that prohibit uninsured drivers from collecting certain types of damages from negligent insured drivers. The theory is that those who do not buy insurance should not receive benefits from those who do purchase it. These laws prohibit injured, uninsured drivers from collecting noneconomic damages and often require uninsured drivers to pay a large deductible (typically $10,000) before they can sue for property damage (PD).

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