No Pay, No Play Another Good Reason to Carry Auto Liability Insurance in New Jersey
Like all states, New Jersey requires all drivers to carry liability insurance or proof of financial responsibility sufficient to meet the state minimum amounts, which in New Jersey are $15,000 per person injured in a car accident, up to $30,000 total for all injured persons, on the standard policy (New Jerseyans can also purchase a Basic Policy with less coverage and still be in compliance with the law). Driving without insurance is illegal, and people who drive uninsured run the risk of causing an accident and being personally liable to the other driver, as well as being cited by the police, hit with a fine, and having their driver’s license suspended. But uninsured drivers also run another risk which can be summed up in four words: “No pay, no play.”
The concept summed up with this slogan is that if you are injured in a car accident that is somebody else’s fault and you did not have liability insurance, you can be prohibited from recovering compensation from the other driver for your injuries. The idea is that it is not fair to allow you to benefit from the liability law when you are not doing your part to comply with the law.
No pay, no play was challenged in court as unconstitutional, but the Supreme Court of New Jersey upheld the law’s constitutionality in the case of Caviglia v. Royal Tours of America in 2004. The driver there was exposed to a mandatory fine between $300 and $1,000, a period of community service, and a one-year license forfeiture, in addition to being barred from suing the negligent driver who hit him. A unanimous court upheld the statute’s constitutionality.
New Jersey is one of ten states with a “no pay, no play” statute in place. Make sure that you are properly covered with at least the minimum liability amounts before you start driving. Having more insurance will protect you in the event you are at fault in an accident, but having at least the minimum amount is equally important to protect you in the event you are hit by a negligent, reckless or distracted driver, and need to recover compensation for your medical expenses, lost wages, pain and suffering, and other legal damages.
