I just moved to Newark, New Jersey, do I need to purchase car insurance in my state? Also, I usually hear people talking about Dollar a Day, what does it mean in New Jersey?

Ellen

Newark, NJ

Car insurance is mandatory in New Jersey, but the type and cost of any insurance coverage can differ significantly. There are two general types of car insurance policies in New Jersey, they Standard and Basic Policy. The Standard Policy covers a number of different coverage options and the opportunity to purchase additional protection. This type of auto insurance policy is chosen by most New Jersey drivers. On the other hand, the Basic Policy normally cost significantly less than a Standard Policy, although it provides limited benefits. This policy is not for everyone, but it does provide enough coverage to meet the minimum insurance requirements of New Jersey law. The Basic Policy is an option for those individuals with few family responsibilities and few assets to protect (including income from a job).

The Dollar a Day is what Newark, New Jersey calls “the Special Automobile Insurance Policy (SAIP), it is a new initiative to help make limited car insurance coverage available to drivers who are eligible for Federal Medicaid with hospitalization. Such drivers can get a medical coverage only policy at a cost of $365 a year, or $1 a day. Those who are currently enrolled in Federal Medicaid with hospitalization are eligible for the Dollar a Day policy. You are eligible for this policy if the Card Run Identifier on the upper left of your Medicaid ID card has an asterisk “*” after the code and “SAIP” is printed and located on the lower right of the card. In addition, the Dollar a Day policy can be obtained at most car insurance agencies.