Bill > S4937

This bill requires liability insurance coverage for special automobile insurance policies, which are designed for low-income individuals enrolled in Medicaid. Specifically, the bill mandates that these special policies must now include liability insurance with two key coverage requirements: $5,000 for property damage and $5,000 for bodily injury or death in any single accident. Previously, these special policies did not include any liability coverage, which meant drivers were potentially unprotected financially in the event of an accident. The bill also removes special automobile insurance policies from the definition of an "uninsured motor vehicle," effectively ensuring that these lower-cost policies still provide basic financial protection. By adding these liability insurance requirements, the legislation aims to provide more comprehensive protection for low-income drivers while maintaining an affordable insurance option. The new requirements will apply to all special automobile insurance policies issued, renewed, or delivered 90 days after the bill's enactment, giving insurers time to adjust their policy offerings to comply with the new regulations.

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https://www.njleg.state.nj.us/bill-search/2024/S4937