What is Dollar A Day Insurance in New Jersey?

At times, we have clients that have Dollar A Day insurance in New Jersey. This is a type of auto insurance coverage available to certain New Jersey residents. The actual name for this insurance program is the Special Automobile Insurance Policy (SAIP). This insurance program is available only to those residents who are eligible for Federal Medicaid with hospitalization. The cost of this auto insurance is $365 for the year, which is why it is often referred to as Dollar A Day insurance.

If you own a vehicle in New Jersey you are required to carry motor vehicle insurance. The SAIP attempts to offer an affordable insurance option for those who are already receiving Medicaid. If a person applies for the SAIP, that person must demonstrate enrollment in Medicaid when the policy is first written and each time the policy is renewed. If the insured is no longer enrolled in Medicaid during the policy term the policy will not cancel. However, the insured will receive only the limited benefits of the policy. This insurance is not available to those whose driver’s license is revoked or suspended.

While this coverage is more affordable than other options, it has some significant limitations. First, this policy provides limited medical coverage. Emergency room treatment immediately following an accident is covered. However, additional medical treatment is not covered unless the person has suffered serious brain and spinal cord injuries. If so, then there is medical coverage up to $250,000. Dollar A Day insurance also provides a $10,000 death benefit.

If a person that has Dollar A Day insurance does not suffer a serious brain and spinal cord injury, then ongoing treatment, such as doctor visits or physical therapy, will likely not be covered by this type of auto insurance. In such situations, injured people with Dollar A Day insurance often try to get treatment paid through their Medicaid coverage. 

Another significant issue with Dollar A Day insurance is that it does not provide liability coverage. This means that this insurance does not pay money if the driver injures someone else. If a driver with Dollar A Day insurance causes an accident and injures another person, the driver would be personally responsible for any damages caused to the other person.

Dollar A Day insurance policies also do not provide collision coverage. This means that this insurance does not provide any money to repair the driver’s car if it is damaged in a collision. This policy also will not pay for the damage caused by an insured driver to another vehicle. The driver would then be personally responsible for paying the property damage to any other vehicle that he or she hits and damages.

While this insurance coverage is more affordable than other coverage, it should be used only by those that have no other option. This insurance is so minimal that it should be used only by those with limited financial resources. Other policies can provide more coverage for medical treatment, liability coverage to protect a driver if that driver injures another person, and collision coverage to repair a driver’s car if it is damaged.

For more information on the SAIP or Dollar A Day insurance in New Jersey, see the website for the State of New Jersey Department of Banking & Insurance.

If you or a family member have been involved in a car accident in New Jersey, contact the New Jersey personal injury firm of Mattiacci Law, LLC. Attorney John Mattiacci has extensive experience handling car accident cases throughout New Jersey. Contact us today for a free consultation. 

 

 

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