Missouri ‘No Pay No Play’ Car Insurance Bill Advances in Senate

A piece of legislation in Missouri that would stop uninsured drivers involved in car crashes from getting reimbursed for certain types of crash-related damages was passed by a Senate committee on Tuesday after being approved by the full House last week.

Representatives in the state House gave a 104-55 vote of approval last week to HB 339, which received a recommendation for passage from the Senate Small Business, Insurance and Industry Committee this week.

HB 339 bars uninsured drivers from collecting “noneconomic damages” after a crash, meaning they aren’t allowed to get compensation for things like pain and suffering from the driver responsible for the crash. The prohibition is meant to encourage uninsured motorists to obtain the insurance coverage that is required before getting on the road by downsizing the power they can wield in crash-related court cases.

Called “no pay, no play,” such laws still allow an uninsured driver to seek damages in court for medical bills, property damage and wage losses.

Like most other “no pay, no play” laws, Missouri’s proposal allows an uninsured driver to seek damages if the at-fault driver was under the influence of alcohol or drugs. Also, passengers in the uninsured driver’s vehicle aren’t subject to the proposal’s prohibitions.

A study from the Insurance Research Council (IRC) found that “no pay, no play” laws help reduce the rate of uninsured motorists by up to 1.6 percent in states where they are enforced.

IRC reported that in 2009, the year in which the latest data is available, 13.7 percent of drivers in the Cave State lacked a Missouri insurance policy. That figure is just below the nationwide average of 13.8 percent at the time.

These states have current “no pay, no play” laws:
–New Jersey
–North Dakota

‘No Pay, No Play’ Measures Also Being Considered in Texas and Oklahoma

A piece of legislation in Texas is also trying to introduce “no pay, no play” to the Lone Star State with HB 1774, which was introduced in February before moving a month later for further consideration in a House committee, where it hasn’t seen action since.

Meanwhile, Oklahoma is trying to beef up the “no pay, no play” law it already has in place with SB 691, which bars an uninsured driver from seeking any type of damages from a car wreck.

That bill passed the Senate in early March by a 31-9 vote, but hasn’t seen action from representatives since it was recommended for passage by the House Judiciary Committee in early April.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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