N.J. DOBI Gives Details on “Dollar-a-Day” Auto Policy

November 19, 2003

New Jersey’s Department of Banking and Insurance has issued an information statement on its website – www.nj.gov/cgi-bin/dobi/paip/paipmenu.cgi, giving details for consumers who may be eligible for the state’s new “Dollar-a-Day” policy.

It described the policy as “a new initiative to help make auto insurance available to drivers who are likely to go uninsured because of limited financial resources.” It’s currently available to persons who are enrolled in the “Federal Medicaid with Hospitalization” program.

The announcement noted that “The Dollar-a-Day policy can be obtained at most insurance agencies. If you’re not sure how to get one, you can call the Personal Automobile Insurance Plan (PAIP) customer service number at 1-800-652-2471, or visit the DOBI Web site.”

Concerning the cost of the policy the DOBI said it really is a dollar a day, i.e. $365 a year, but if it’s paid in advance it’s only $360. It covers emergency treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit.

It doesn’t cover outpatient treatments such as doctors’ visits covered by Medicaid, third party liability damages or damages to the insured’s own vehicle (collision and comprehensive).

The DOBI stated: “The applicant must demonstrate enrollment in Medicaid when the policy is first written and at each renewal. If the insured is no longer enrolled in Medicaid during the policy term the policy will not cancel, but the insured will receive only the limited benefits of the policy.” However, “If there is one car and several people in the household enrolled in Medicaid, they can all be covered by the same policy. However, there can only be one car per policy.”

It added that persons with revoked or suspended licenses or car registrations are not eligible.

To obtain coverage a prospective policyholder needs to present “valid driver’s licenses for all operators of the vehicle to be insured and the vehicle’s registration,” as well as a “Medicaid identification card that shows that all persons to be covered under the policy are enrolled in Medicaid.”

Was this article valuable?

Here are more articles you may enjoy.