Special Insurance Policy for Medicaid Recipients Only
The Special Policy is a new initiative to help make limited auto insurance coverage available to drivers who are eligible for Federal Medicaid with hospitalization. Such drivers can obtain a medical coverage-only policy at a cost of $365 a year. This is also called a “dollar a day policy” and it covers pretty much nothing.
No liability coverage, No underinsurance/uninsured coverage, no comprehensive coverage, no collision coverage—you get the point. It only provides emergency treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit. If you are at fault in an accident and are sued, you are on your own. You will have to hire an attorney to defend you and you will be responsible for payment of any judgment.
I personally think that is policy is completely irresponsible-both for it to even be offered and for people to opt for it. Only when the insured is involved in a catastrophic accident-one requiring emergency medical treatment immediately after the accident-will this policy be useful. And even then, once you are released from the hospital, you are on your own. I see this as an easy moneymaker for insurance companies. The policyholder pays approximately $365 per year for a policy that is not likely to ever be used. And of course, common sense dictates-if insurance companies have a high risk, do you think the policy would only cost $365 per year? It’s cheap because insurance companies don’t carry much of a risk.
It is because of policies like this that it is very important for you to have sufficient underinsured/uninsured coverage.
If you have more questions about auto insurance? Contact us for help on understanding your auto insurance needs and coverage.