When Can You Sue Outside of Insurance Coverage in Louisiana?

If you’ve been in a car accident in Louisiana, your first thought is usually, “The insurance company will handle it.” That’s true in many cases — but not always. Sometimes the at fault driver’s insurance doesn’t come close to covering your medical expenses, vehicle damage, or lost wages. In those situations, Louisiana law gives injured parties the right to take legal action and sue for the remaining costs.

Here’s the catch: state laws set strict limits on when you can go beyond the policy limits in a personal injury claim. The pay no play law also blocks certain claims by uninsured victims, unless exceptions exist — like if the other driver was drunk or committed a felony offense.

This guide explains exactly when you can sue outside of insurance coverage in Louisiana, what happens when policy limits aren’t enough, and how underinsured motorist coverage or a car accident lawsuit can help you recover damages that your insurance coverage won’t touch. Whether you’re dealing with an uninsured driver, a negligent party, or bodily injury damages that exceed the first fifteen thousand dollars in coverage, knowing your legal options can make all the difference in getting fair compensation.

Louisiana’s Car Insurance Requirements

To legally drive in Louisiana, all drivers must carry liability insurance that meets the state’s minimum requirements. These minimums are often referred to as 15/25 coverage:

• $15,000 for bodily injury per person in a single accident.

• $25,000 for property damage in a single accident.

This means if you cause a motor vehicle accident, your insurance company will pay up to these amounts for the injured party’s medical expenses or vehicle damage. Anything above those amounts becomes your personal responsibility — and that’s where lawsuits beyond policy limits can come into play.

If you fail to carry insurance, you risk more than just paying out of pocket. Louisiana law imposes fines, possible license suspension, and in some cases a felony offense if the accident involves serious bodily injury damages. You also lose certain rights under the pay no play law, meaning you can’t recover the first fifteen thousand dollars of bodily injury or the first twenty five thousand dollars of property damage from the at fault party.

Many Louisiana drivers add uninsured motorist coverage or underinsured motorist coverage to their insurance policy for extra financial protection. This coverage can be a lifesaver if you’re hit by an uninsured driver or if the other driver’s insurance coverage is too low to cover damages from such accident.

When the At-Fault Driver’s Insurance Isn’t Enough

Even when the at fault driver has the required liability insurance, it’s not unusual for the policy limits to fall short — especially in cases involving serious injuries. Medical treatment, ongoing rehabilitation, and lost income can quickly surpass the first fifteen thousand dollars in bodily injury damages. Add in vehicle damage and other expenses, and you may be facing tens of thousands of dollars in remaining costs.

When this happens, you may have the right to file a personal injury claim or car accident lawsuit against the negligent party directly. If the court awards more than the insurance company is obligated to pay, the difference is called an excess judgment — money you can recover from the at fault party’s personal assets.

Some situations where the at fault driver’s insurance may not be enough include:

• Uninsured driver hits you and you have no uninsured motorist coverage.

• The other driver carries only the state minimum and your medical bills and lost wages exceed that amount.

• Punitive damages are awarded because the driver caused the accident through extreme recklessness, such as drunk driving.

If you find yourself in this situation, you’ll need to carefully weigh your legal options. Suing outside of insurance coverage can be the only way for injured parties to recover damages in Louisiana fully.

Filing a Car Accident Lawsuit in Louisiana

If insurance isn't cutting it, it's time to roll up your sleeves—and probably hire a personal injury attorney. Here's what really happens:

1. Deadline Matters: 2-Year Statute of Limitations

In Louisiana, you have two years from the crash date to file your lawsuit. Miss that, and your case is dead.

2. Document Every Last Penny of Your Damages

You need a paper trail:

• Medical bills

• Lost wages

• Vehicle repair estimates

• Photographs

• Witness statements

If you're pursuing punitive or excess damages, you need to prove the gap—and prove fault—which can get complex.

3. Excess Judgments: Chasing the Money After Insurance

If you’re awarded more than the at-fault driver’s policy limit, you get an excess judgment. Collecting on that may mean garnishing wages or seizing assets—but it’s your right under Louisiana law.

4. Using UM/UIM to Fill the Gap

If you have valid UM/UIM, you can tap into it once the liability insurance maxes out. But be sure your waiver (if any) was done correctly—courts are harsh on sloppy waivers.

5. Bad-Faith Insurance Claims

If the insurance company fails to settle fairly or in good faith, Louisiana law allows lawsuits against them—potentially with penalties—under statutes like La. R.S. 22:1973, 22:1295, or others.

6. Comparative Fault Still Applies

Louisiana uses pure comparative fault. If the court finds you were, say, 20% at fault, your award is reduced by 20%, even when suing outside insurance limits.

Court Process in a Nutshell

1. File petition within one year.

2. Serve the at-fault driver (and insurer if applicable).

3. Discovery: exchange evidence, depositions.

4. Negotiation or mediation: might settle pre-trial.

5. If no deal, trial where jury/judge decides.

6. Collect your award—which may require enforcement actions if defendant is broke.

Louisiana’s Pay No Play Law and Its Exceptions

Louisiana takes a hard stance on uninsured drivers. Under the “No Pay, No Play” law (La. R.S. 32:866), if you don’t carry liability insurance, you lose the right to collect the first $15,000 of bodily injury damages and the first $25,000 of property damage from the at fault driver’s insurance—even if that driver caused the motor vehicle accident.

This law applies to most personal injury claims and insurance claims involving a motor vehicle, but it’s not absolute. Exceptions exist that can restore your right to full recovery.

When the Pay No Play Law Applies

• You own or operate a motor vehicle involved in the accident and did not carry insurance at the time.

• You’re seeking to recover damages from the other driver’s insurance company for such injury or property damage.

If both of those are true, your compensation is reduced by the first fifteen thousand dollars of bodily injury and twenty-five thousand dollars of vehicle damage.

Exceptions to the No Pay No Play Law

Louisiana lawmakers carved out certain situations where the restrictions don’t apply, including:

1. The other driver was intoxicated (DWI) at the time of the accident.

2. The at fault party was committing a felony offense during the crash.

3. The accident was a hit-and-run where the driver fled the scene.

4. The injured party was legally parked and not operating the vehicle at the time.

5. The vehicle was stolen or used without the owner’s permission.

In these scenarios, the uninsured victim can pursue full compensation, including medical expenses, lost wages, and property damage, without the $15K/$25K deduction.

Why This Law Matters for Suing Outside of Insurance Coverage

If you’re uninsured and none of the exceptions apply, your claim starts at a financial disadvantage. But if your losses exceed the at fault driver’s policy limits, you can still sue for the remaining costs beyond coverage—your first $15K/$25K is just off the table. If an uninsured driver hits you, the law doesn’t hurt you as long as you had insurance at the time.

Knowing whether the Pay No Play rule applies to your accident is critical before you start a car accident lawsuit or seek compensation through Louisiana courts.

Recovering Damages Outside of Insurance

When the at fault driver’s insurance doesn’t cover everything, Louisiana law gives you the right to pursue the remaining costs directly from the negligent party. This is called suing for an excess judgment—and it can be the only way to get fully compensated after a serious motor vehicle accident.

Here’s what you can claim beyond the policy limits:

1. Medical Expenses Not Covered

Insurance coverage may stop at $15,000 for bodily injury under Louisiana’s minimum liability insurance rules. Severe injuries can generate medical bills well beyond that. You can seek recovery for hospital stays, surgeries, rehabilitation, medications, and future treatment costs in a personal injury claim.

2. Lost Income and Reduced Earning Capacity

If your injuries keep you from working, you can claim not only lost wages but also compensation for your reduced ability to earn in the future. This applies even if your immediate expenses were partly covered by the insurance company—the rest can be part of your lawsuit.

3. Punitive Damages for Egregious Conduct

Louisiana allows punitive damages in certain cases, such as when the driver caused the crash while intoxicated or engaged in reckless, intentional misconduct. These damages are meant to punish the wrongdoer, not just cover damages. Insurance policies often exclude punitive damages, so the injured party must go after the at fault party’s personal assets.

If your losses are higher than what the insurance policy covers, you don’t have to absorb the difference. Whether it’s medical expenses, lost income, or damages for outrageous behavior, Louisiana courts allow you to hold the other driver personally responsible for the shortfall.

Your Rights Don’t End with the Insurance Check

If you’ve been injured in a Louisiana crash, the settlement from an insurance company is often just the beginning—not the full story. You may still have the right to recover additional damages for uncovered medical costs, lost income, long-term impacts on your earning ability, and even punitive damages if the other party’s conduct was reckless enough. Knowing what you’re entitled to can make the difference between barely getting by and truly being able to move forward. Burnham Law Firm can help you understand your legal options and what’s possible in your case.

Even if the insurance company has closed your file, your recovery might not be over.