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4 Facts You Should Know about Dollar-a-Day Car Insurance

Have you ever wondered what dollar-a-day car insurance is all about? It is possible that you came across an ad for this insurance policy in your search for affordable car insurance online.


The truth is that anyone who is on a budget would find the idea of this insurance policy appealing. However, it might be disappointing to know that this policy is only in one place and under certain circumstances.


Below are four astonishing facts to know about dollar-a-day Insurance Policy.


#1 It Costs a Dollar a Day

Dollar-a-day car insurance is an insurance policy available in New Jersey helps people with low income but are enrolled for Medicaid to save money on certain medical liabilities. The cost of this insurance is literally $1 per day for 365 days.

This program, developed by the Department of Banking Insurance in New Jersey allows drivers who can’t afford vehicle insurance to carry medical liabilities that cover the medical costs caused in case they cause an accident.

Even though these drivers are driving illegally since they aren’t holders of required property liability insurance, dollar-a-day insurance helps reduce the number of accidents that end in unpaid medical bills and lawsuits.


#2 Not Everyone Qualifies for Dollar-a-Day Insurance

You might have stumbled upon dollar-a-day insurance and really excited that it is going to save you a lot of money.

The bad news is that if you have a bad driving record, live in certain states or do not meet specific criteria; you will have to pay higher rates that are sometimes much higher than what you can afford.

You can consider other low-income options for your car insurance if you don’t meet all the requirement for dollar-a-day insurance.


#3 Dollar-a-Day Coverage Can’t Supplement Property Damage Liability

Another critical thing to note is that it is impossible to use your insurance company to cater to property damage liability while using dollar-a-day insurance policy for medical liability portion of your car insurance.

What this means is that this insurance policy is not for you if you qualify for dollar-a-day insurance but want property damage liability coverage.

And another thing. You are not eligible for dollar-a-day insurance if you qualify for Medicaid, but you aren’t enrolled to it. To make this purchase, you must sign up for the Medicaid programs.


#4 Dollar-a-Day Insurance Is the Cheapest Car Insurance Option

Sadly, there is nowhere you are going to find an insurance policy as low as a dollar-a-day in cost. But you can get insurance lower than the national average in some other states. For example, liability insurance in Idaho averages $553 per year. This turns out to be $1.51 a day

But one thing’s for sure. Even though there are no other states that offer this insurance policy; it is simply a matter of time before other states aside New Jersey start using dollar-a-day car insurance policy as an option.

Their adoption will, however, depend on the success of the program in New Jersey