California No-Pay, No-Play Law
In the golden state, it is mandatory for every driver to have appropriate insurance coverage. Note that you will have to show that your vehicle has an insurance policy to obtain maximum damages. Otherwise, the compensation that you may get will be way less. The reason for this is the no-pay, no-play rule existing in California. Depending on the no-pay, no-play rule, also known as Proposition 213, the amount that the insurance company of the other driver has to pay to the plaintiff is determined. Below are some important details about the rule and its significance in California.
The No-Pay No-Play Rule
There is a limit in California when it comes to the compensation amount an uninsured driver can collect from an opposite party, who is insured, in case of road accidents. The rule is the same even if the accident was caused because of the reckless action of the insured driver. According to the law, it is not allowed for an uninsured victim to sue the insured defendant for non-economic losses such as pain and suffering, mental anguish, emotional trauma, etc.
However, the victim can still claim for economic damages such as treatment expenses, repair bills, and other financial obligations that he/she had to suffer because of the accident and injuries. Even in this case, the uninsured drivers will have to deduct an amount of $10,000 when filing a lawsuit against the people at fault for their property damage.
The limitation when it comes to monetary compensation for auto accidents alone is not the issue if you fail to purchase an insurance policy. It is to be noted that the uninsured driver will have to face per se hearing from the administration that can result in the suspension of their vehicle license for up to 4 years.
On top of that, you will have to pay a relatively higher insurance amount after you restored your license. The main intention of this law is to charge or punish the citizens who fail to apply for insurance as well as to provide compensation to everyone whenever required. This law is applicable in other instances as well such as fleeing from the accident scene, driving under influence, etc.
Furthermore, hiring the services of a credible personal injury attorney is important to claim maximum compensation for your damages. This is even more significant when it comes to uninsured drivers. In this case, a well-qualified accident injury lawyer can argue and obtain maximum financial compensation for your economic losses that sustained as a result of the fault of another person.