New Jersey Low Cost Insurance Program May be Unfair to Accident Victims
In 2003, then-Governor James E. McGreevy introduced the Social Automobile Insurance Policy that allowed low income motorists to drive with threadbare policies that barely covered their medical costs in the event of an accident. A watchdog report by Press of Atlantic City shows that it's been properly-insured motorists who have suffered.
That’s because when a motorist who is covered by SAIP causes an accident, it’s the victim of the accident and his insurance company who have to foot the bill. This means that motorists may be stuck with a huge bill for car repairs, and a bigger one for injuries in an accident because of the SAIP-insured motorist. Because the SAIP-covered motorist's policy barely covers his own expenses, the other motorist can’t expect to claim any relief. There isn't much point in filing a lawsuit against the driver’s assets, because in most cases these motorists have few, if any, assets.
SAIP was introduced at a time when insurance companies in the state were in disarray. Insurers were leaving the state in droves, and the SAIP program was meant to bring some calm into this state of affairs. At that point, there were about 600,000 motorists in New Jersey who had no access to car insurance. SAIP was created to fill this gap, and provide insurance for poor people who needed to get to work, and could not afford regular insurance.
Under the program, an uninsured motorist had to pay $365 per year for the plan, which covers low income New Jersey residents who are eligible for Medicaid benefits. The policy covers up to $250,000 in the treatment of serious injuries. There is also a death benefit of $10,000. However, there is no cover for property damage or bodily injury liability.
When the program was first set up, officials believed that the number of such policies sold would be too few to warrant any crises. However, the number of people who have purchased such policies has grown dramatically. In 2008, there were more than 18,500 dollar-a-day policies. Currently, there are an estimated 22,000 policies.
Accident Victims Will Continue to Suffer
There is more bad news. As more and more people choose these low cost dollar-a-day polices, experts estimate that these motorists with SAIP cover, and no bodily damage liability, may soon outnumber motorists who have some kind of basic liability coverage.
Scott Grossman is a New Jersey personal injury lawyer representing victims in Monmouth, Bergen and Passaic Counties, and all across New Jersey.
One of these SAIP folks rear-ended my wife and daughter. Both were injured and he stood there laughing. Not a care in the world. The Trooper asked my wife if she wanted an accident report and he told her that our insurance was going to go up. At first we thought he was trying to talk her out of it because the other fellow was a police officer. But we soon realized that the Trooper knew by the insurance code that this guy had the dollar a day policy. After speaking with his insurance company they gave me a claim number then said that his policy basically only covers him. They told me to put it through my own insurance and I was blown away. Then they said why dont you sue him. Again I was amazed - if he's got Medicare which makes him eligible for this policy then he has no assets so what would I get? I spoke to NJ Dept of Banking and Insurance and tore them apart. The fellow on the other end of the phone conceded that this program grew well beyond what was intended and is out of control. The only way to change things like this is to embarrass politicians. If you’ve got an idea send me an email – I’M IN !
this is insurance that former governer mcgreevy came up with, was and is a disaster!! why was there no collision included?? why was there any option for a deductiable? I would like to note that i am a policy owner for saip and would to write congress to due away with this insurance policy all together. Every one whether you are a policy holder or you are the plaintiff are victims. The lest fortunate were mislead and given a break down on the no collision policy. What about the children that could possibly be seriously hurt? A car can be replaced. You pay 360 a yr for this coverage but will wind up paying for the maybe the ten years to settle any case due to the fact that saip holders have no assets. Please i want to help in the process and voice my opionion on this saip insurance scam.
I too was involved in a collision with a SAIP covered driver. I guess the only thing more offensive than having my car totalled by an uninsured motorist travelling twice the speed limit toward me in my lane is the fact that THE STATE ENDORSED IT. I grew up believing that basic insurance meant LIABILITY. What's the point here? Is the connection between insurance and registration and the police so confusing? If you don't have coverage, or you drop your coverage, the police should show up and take your plates. It's not rocket science.