What is "special insurance" in New Jersey?

I was in an accident where I was not at fault; the other driver hit me! I was in the hospital for a week and my car was totaled. I find out the other driver has "special NJ insurance" and there isn't going to be any payout for my car or medical bills. How is this possible?

Answer
“New Jersey has what is known as Special Automobile Insurance Policy (SAIP), or “”Dollar a Day“” insurance for drivers who are on Medicaid. It was originally set up so that folks who can’t afford standard insurance will have some protection in the event of an accident. However, this insurance does not pay out like a standard policy.
SAIP only covers the driver’s medical payments and funeral cost up to a limited amount. It does not provide liability coverage when they are found to be at fault in an accident. This is the coverage type that would normally pay for your medical bills and vehicle.
In this situation, the only recourse you have is to go after the other driver personally with a lawsuit in hopes of recouping what you have lost.”
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Shannon Martin
Answered on Apr 29, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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