‘Dollar a Day’ insurance in New Jersey refers to a special type of auto insurance that is available to certain residence. The official name of the auto insurance program is the Special Automobile Insurance Policy, or SAIP.
This insurance program is available to those in the state who may receive federal Medicaid with hospitalization. This auto insurance costs only $365 per year, hence the term Dollar a Day insurance.
SAIP Basics
All New Jersey vehicle owners are mandated to carry auto insurance. SAIP exists to offer a low-cost option for those who are receiving Medicaid benefits. If a driver applies for SAIP, he must prove that he is enrolled in Medicaid when the insurance policy is written and every time it is renewed. However, the driver only receives a limited number of benefits on this type of insurance.
SAIP Limitations
It is good that the state government is trying to ensure that all drivers have auto insurance. But this policy has serious limitations. Only limited medical coverage is available. ER treatment after an accident is covered. But if there is additional medical treatment, there is no coverage, unless the person has a serious brain or spinal cord injury. In that case, medical coverage up to $250,000 kicks in. There also is a $10,000 death benefit with Dollar a Day insurance.
Short of a serious brain or spinal cord injury, the ongoing treatment needed after an accident is probably not covered. The only option is to for the person to attempt to have medical treatments paid for through Medicaid.
Worse News with SAIP
SAIP has other serious problems. It does not provide liability coverage at all. If the SAIC-covered driver injures you in a car accident, there is no insurance coverage on that policy. The driver would be personally responsible for injuries you suffer. Most of these drivers have few if any assets.
Further, Dollar a Day insurance does not have any collision coverage. There is no coverage to repair the driver’s or other person’s care in an accident. The insurance policy also pays nothing for damages caused by any insured driver to another car.
The bottom line on SAIP coverage is that it is better than nothing. It only should be used for those who have no other choice. Dollar a Day insurance coverage is so sparse that it only should be used by people who can afford nothing else. Other insurance policies will provide far more coverage for liability, collision, medical treatments and more.
Injured in a Car Accident? (201) 944-9200
If you or a loved one were hurt in an auto accident, please contact our personal injury attorneys today. We will conduct a complimentary review of your personal injury case. If you were hurt by a driver with Dollar a Day insurance, you will need strong legal representation to ensure that you are fairly compensated for your accident injuries. Please call us today.
