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Part One in a Series: A Dollar a Day Automobile Insurance Policies
No doubt, the title of our first in our series on automobile insurance has you curious. After all, you’re fairly certain that car insurance in New Jersey is far more than a dollar a day. Although such a plan does exist, it offers scant protection. Truth be told, most people cannot even opt for a Special Automobile Insurance Policy (SAIP).
Why is that? In order to purchase a Special Automobile Policy, you must first pass eligibility requirements. According to the State of New Jersey, SAIPs are only available to individuals approved for Federal Medicaid. Notwithstanding, not all Medicaid programs are created equal. Your Medicaid number will provide the key to your eligibility.
Dollar a Day Insurance Policies
The reason that Special Automobile Insurance Policies are dubbed “Dollar a Day” policies is easy to figure out. The annual premium is just $365 if you pay it in two installments. However, if you pay it all at once, the price drops down to $360 for the year. Meanwhile, if you do qualify for this insurance, you should understand its limitations.
First, there is the issue of medical coverage. The policy will afford payments for emergency treatment immediately following an accident. No additional medical bills are covered under this plan unless they are related to serious brain and spinal cord injuries. Additionally, the policy limits are capped up to $250,000.
Under a Special Automobile Insurance Policy, you would not receive coverage if you required subsequent surgeries to any part of your body other than your brain or spinal cord. SAIPs don’t cover outpatient physical therapy or follow up tests or visits. However, in the case of a fatal accident, there is a $10,000 death benefit.
SAIPs do not provide collision insurance. Therefore, if your car sustains property damage, you will need to figure out how to get it fixed on your own.
Dollar, a Day insurance policies, are for medical coverage only. This means liability coverage is also excluded. Therefore, if you are at fault in a car crash, you are not insured for any claims made against you. What does this mean exactly?
For one, you may be found personally liable for any lawsuits. The insurance company will not hire a lawyer to represent your interests. For many Special Automobile Insurance policyholders, this is nearly a moot issue. Even if they are sued for damages, they have no assets.
However, what happens if you are in a car crash caused by someone whose plan is a SAIP? Fortunately, your own automobile policy should have provisions for Uninsured/Underinsured coverage. The Uninsured portion of your coverage pertains to accidents where the at-fault driver had no insurance. You should always check to determine if you are adequately covered for Uninsured/Underinsured motorist claims.
Make Sure You Understand Your Auto Insurance
The unfortunate thing is that many drivers are unaware of the limitations of their auto insurance policies. Many purchase insurance policies online without the benefit of speaking to an insurance agent. At Beninato & Matrafajlo, we would be pleased to review your policy choices with you. There is no cost for this service to ensure your needs are covered.
If you or a loved one has been injured in a motor vehicle accident, we would also like to assist you. Contact us today for a free no-obligation consultation. We very much look forward to hearing from you.