Modernizing Auto Claims with 'No Pay, No Play' Rule Integration

May 9, 2025 / 2 min read

Millions of drivers across the U.S. hit the road every day without adequate insurance coverage. Whether it’s no insurance or just underinsurance, the result is the same: responsible drivers are left vulnerable to the financial fallout of accidents they didn’t cause.

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For insurers and law-abiding policyholders, this growing trend isn’t just frustrating; it’s expensive. Uninsured drivers contribute significantly to rising premiums and claim costs, ultimately creating an environment where responsible drivers foot the bill for others’ noncompliance.

But a civil law principle is gaining traction in the fight against this inequity: No Pay, No Play.

Understanding "No Pay, No Play"

The ‘No Play, No Pay,’¹ doctrine, now adopted in 11 states, essentially restricts uninsured drivers from recovering noneconomic damages such as pain and suffering if they’re injured in an accident, even if the other driver is at fault. The message is clear: those who don’t contribute to the insurance system can’t fully benefit from it.

For insurers, this law is a critical tool in reducing unnecessary payouts, protecting reserves, and creating a more sustainable premium environment for all policyholders.

Closing the compliance gap with technology

No Pay, No Play laws, while important, are complex and vary from state to state. Enforcement has historically been inconsistent, often due to lack of visibility in claims workflows.

That’s why No Pay, No Play indicators can be integrated within Claims Coverage Identifier, that provides essential coverage details in one package. Now insurers can quickly identify when and where the law applies and take the appropriate steps in handling the claim.

Here’s what this new capability delivers:

Legal clarity at the point of claim: Claims professionals can gain immediate insight into a claimant’s insurance status and whether No Pay, No Play restrictions may apply.
Operational efficiency: Claims management can streamline processes, reducing time spent on legal interpretation and manual research.
Risk reduction: By ensuring compliance with civil law, insurers can reduce the likelihood of making payments that could later be deemed invalid or excessive.

A smarter, fairer system

Ultimately, Verisk aims to enable smarter insurance decisions through better data. With No Pay, No Play functionality built into the Claims Coverage Identifier, insurers can now be better equipped to protect their policyholders, manage claim costs, and uphold the integrity of the insurance system.

Looking ahead, the adoption of such tools isn’t just a technological upgrade; it can be a step toward a more equitable insurance environment where accountability is enforced, and fairness is strengthened.

When it comes to insurance, those who play by the rules shouldn’t be left paying for those who don’t.

Learn more about Claims Coverage Identifier.

1. Vallet, Mark. What Are No Pay, No Play States? Reviewed by Laura Longero, CarInsurance.com, 21 Aug. 2024, https://www.carinsurance.com/kb/no-pay-no-play-states.

Leveraging 'No Pay, No Play' Auto Laws With Claims Coverage Identifier

Understanding "No Pay, No Play"

Closing the compliance gap with technology

A smarter, fairer system