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Benjamin Zitney 9431 Haven Ave. #201 Rancho Cucamonga CA, 91730 9097842471 |
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The newest FAQ from OnlineAutoInsurance.com discusses the workings of the Garden State's Special Automobile Insurance Policy.
Online PR News – 01-September-2010 –Ensuring that all driving residents are financially responsible is a common goal of the 50 states. The more motorists that have auto insurance, the less of a chance there is that drivers will be left with debilitating financial burdens from accidents. Some states have responded to this issue by setting up low-cost policy programs for financially strapped drivers as a means of shrinking the number of uninsured motorists. In the latest FAQ, the writers at OnlineAutoInsurance.com discuss one example of this type of program.
With the average car insurance expenditure in New Jersey in 2003 estimated to have been $1,193 — the highest state average in the country at the time — it’s easy to see why residents of the Garden State might have needed a little assistance in getting insured. So that state’s legislature in 2003 set up a program that would help residents with limited financial resources obtain auto insurance coverage with reduced rates and reduced minimum protection levels. Since then, the average expenditure has fallen, but not nearly enough to eliminate the need for a low-cost program. The National Association of Insurance Commissioners estimated that the state’s average in 2007 was still $1,104.
For a cost of $365 per year, the Special Automobile Insurance Policy (SAIP) allows qualified residents to get covered for up to $250,000 in emergency medical treatment costs that are needed as a result of a car accident; also included is a $10,000 death benefit. The plan, though, does not cover outpatient treatments covered by Medicaid or any property damages.
Enrollment in the program is limited. The only people eligible for getting an SAIP plan are New Jerseyans who are currently enrolled in the Federal Medicaid With Hospitalization program and have licenses that are not revoked or suspended.
Source: http://www.state.nj.us/dobi/division_consumers/insurance/saip.htm
Although these low-cost plans can be extremely helpful in coming into compliance with state auto insurance laws, consumers need to consider the heightened risk that comes along with lowered levels of protection. For instance, standard car insurance in New Jersey would cost more than the SAIP, but the policyholder would have at least some level of protection from having to pay the full cost of any property damages in an accident. And there are many other types of coverage that can both benefit drivers and be attained for minimal cost. Consumers considering enrolling in a low-cost program or going with the minimal levels of coverage should first make sure that there is not already a better-quality deal available out there on the market.
To access the latest FAQ and to learn more about insurance matters, consumers can go to http://www.onlineautoinsurance.com/coverage/ where visitors will also be able to get personally tailored, side-by-side comparisons of quotes from a variety of carriers.
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