If you’ve been shopping for car insurance, you may have seen policies advertising a dollar-a-day plan. Car insurance is expensive, so what could be more appealing than only having to pay $365 a year to protect you in the case of an accident?
Before you get too excited about saving money, you should learn more about what dollar-a-day insurance is, who can get it and when.
What is Dollar-A-Day Car Insurance?
The first thing you need to know about dollar-a-day car insurance is that it is limited to residents of the State of New Jersey. This is because New Jersey developed a plan known as the Special Automobile Insurance Policy (SAIP) that addresses the needs of some low income state residents. Those who qualify for Medicaid may be eligible for this special dollar-a-day car insurance that provides them with medical liability coverage only.
It is most important to note that if you qualify you are only covered for medical liability and no other coverage is provided. So, no collision, comprehensive or other liability auto insurance coverage.
And, another very important point is that dollar-a-day car insurance does not meet state minimum requirements for car insurance.
Where Can I get Dollar-A-Day Car Insurance?
Dollar-a-day car insurance is only available through the State of New Jersey. There is no insurance company to call. You go directly to the state insurance department to sign up.
The program is very limited and targeted towards those who can’t carry car insurance because of the cost. This type of policy at least provides coverage for some medical costs due to an accident.
What Does Dollar-A-Day Insurance Cover?
Dollar-a-day car insurance generally covers the following for the policyholder only:
- Emergency treatment immediately after an accident
- Additional medical treatment for critical brain or spinal injuries up to $250,000
- Death benefits paid to the beneficiary of up to $10000
The New Jersey SAIP policy can cover one car and several people in the same household as long as they are enrolled in Medicaid.
Should I Buy Dollar-A-Day Car Insurance?
Dollar-a-day car insurance is an option to use when you are out of options. However, if you can at all afford a standard auto insurance policy you should purchase one. There are ways to reduce your payments in order to make the policy more affordable.
Other ways to save include:
- Choose your car wisely – High-end cars cost more to insure
- Deductions – Make sure you are taking all of the deductions available to you
- Discounts – Also, make sure you are taking all of the discounts available to you
- Reduce coverage – Reducing your coverage amounts will lower your premium
- Increase deductible – Increasing your deductible payment will also lower your monthly payment
If you’ve already been shopping around for an auto insurance policy, good for you! Comparing auto insurance rates is the best way to save money. InsuranceWins can give you a boost by connecting you with quotes from well-known insurance companies so you can find ways to save, even if you don’t live in New Jersey.