Kyrillos bill demands MVC promote insurance options

Saying New Jersey motorists are not aware of all the automobile insurance options available, legislation sponsored by Sen. Joseph Kyrillos, (R-Middletown), which would better inform residents about the state’s low-cost insurance policies, passed the Senate Commerce Committee Oct. 18.

The bill, S-1703, requires the chief administrator of the Motor Vehicle Commission (MVC) to notify all motorists of the availability of basic automobile insurance policies, and the automobile insurance policy commonly referred to as “Dollar-A-Day” insurance.

The legislation stipulates that a notice be provided to residents when a vehicle is registered or inspected and when registration policies are renewed. The notice would be prepared by the commissioner of banking and insurance and would include: 1) a notice that the basic and the Dollar-A-Day policies are available at substantially less cost than the standard policy; 2) a statement indicating that all insurers that provide motor vehicle insurance to residents of New Jersey are required to provide basic and Dollar-A-Day insurance policies; and 3) a recommendation that drivers ask their insurers or agents if either of these policies is the best option for them, given their personal circumstances. Posters or signs would also be displayed in all motor vehicle facilities and offices.

Enacted in 1998, the basic automobile insurance policy is available to all drivers and provides motorists with $15,000 in medical expense benefits and up to $250,000 in catastrophic medical expense benefits. The policy also provides property damage liability. The policy, enacted in 2003, is only available to residents eligible and enrolled in Medicaid. This policy only covers emergency room care and provides a $10,000 death benefit.

“Motorists need to know that affordable options do exist and by providing them with written information when they are registering or renewing their registration, they will be able to contact an insurance company representative and ask them about these low-cost options,” Kyrillos said in a press release.