N.J. Dollar Policies Selling Fast:

The number of drivers enrolled in the Dollar-a-Day auto insurance program in New Jersey has surpassed 1,500, just six months after it was launched to help uninsured drivers with limited means get affordable auto insurance, according to Insurance Commissioner Holly C. Bakke. Gov. James E. McGreevey’s administration has maintained that there are drivers who are uninsured not by choice but by circumstance and they are a liability on the road. The new Dollar-a-Day policies grant qualified poorer drivers a break. Since October 1, 2003 a total of 1,535 policies have been sold. The Dollar-a-Day policy makes $15,000 worth of emergency room care available for $360 a year, or $365 if purchased in two, six-month installments. This policy is available only to those drivers who are eligible for federal Medicaid with hospitalization. Dollar-a-Day policies address the biggest cost an uninsured driver places on the system: emergency room care after an accident. The policy provides $15,000 of emergency care and $250,000 of medical coverage if the driver suffers a catastrophic injury. The driver’s Medicaid benefits provide any non-emergency medical care. Dollar-a-Day provides a higher and more certain level of reimbursement for trauma centers, which helps reduce the cost of Personal Injury Protection (PIP) for other drivers. A portion of each Dollar-a-Day policy goes toward to compensate drivers who are injured by uninsured motorists. The policy also provides a $10,000 death benefit.