Cheap Auto Insurance in Newark New Jersey?
Reader’s Question:
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.
Cheap Auto Insurance Discounts
Reader’s Question:
What discounts will be available that I can take advantage of to get a cheaper auto insurance rate?
Dan
Newark, NJ
There are many types of discounts available to the average motorist.
Make sure to ask if you qualify for any discounts for a cheaper insurance when getting your car insurance policy set up.
Some of the common discounts you might be eligible for are:
1. Multi-Vehicle- if you insure more than one car with the same insurer, you can get discounts.
2. Defensive Driver Courses- if you have just taken a defensive driver course (this is only available in some states).
3. Safety features- if you have a airbags, car alarm, anti-lock brakes, or automatic seat belts in your vehicle.
4. Multi-line- if you have car insurance and homeowners through the same carrier
5. Pay in full or through EFT (electronic fund transfer)- you can save on finance charges if nothing else.
6. A full time student with a grade average “B” or higher (only available with some insurance providers).
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