Dollar-a-Day Insurance in New Jersey (SAIP)

Dollar-a-day car insurance, also called the Special Automobile Insurance Policy (SAIP), is a state program that provides affordable insurance for New Jersey residents who qualify. This program helps people who are enrolled in Federal Medicaid with Hospitalization who meet specific income requirements. The program helps low-income drivers access basic medical coverage, providing financial protection even when standard insurance premiums are beyond reach.

The SAIP doesn't meet the state's minimum requirements for car insurance and only provides limited medical coverage for treatment after a car accident. Despite this limitation, SAIP policyholders are considered legally insured under New Jersey law, even though they lack the comprehensive protection that standard policies provide.

SAIP eligibility is designed for qualifying New Jersey residents with strict income and insurance requirements. Check these criteria before beginning the application process.

To qualify for SAIP, you must be enrolled in Federal Medicaid with Hospitalization benefits and be a New Jersey resident with a valid driver's license. Your household income must fall within Medicaid eligibility guidelines, and you can't have access to other automobile insurance coverage. Additionally, you must own or regularly drive a motor vehicle to be eligible for this program.

Eligibility requirements change based on state regulations and federal Medicaid guidelines. Before applying, confirm current requirements by visiting New Jersey's SAIP website or contacting the program directly. If your Medicaid status changes, it affects your SAIP coverage eligibility.

Note: Medicaid and state program requirements can change. Please verify current eligibility requirements before applying.

You have two options to purchase dollar-a-day car insurance in New Jersey:

• You can buy through a licensed insurance broker who offers SAIP coverage. There are no additional fees for this service.
• To buy dollar-a-day insurance coverage directly, contact the Personal Automobile Insurance Plan (PAIP) New Jersey office at 1-800-652-2471.

Most insurance agencies throughout New Jersey can process SAIP applications. The state's online directory, searchable by county, makes finding participating agents easy.

SAIP provides essential medical coverage immediately after car accidents. This coverage doesn't include deductibles, as it's a medical-only policy with specific benefit limits. Before applying, understand what's covered and the limitations. The policy focuses exclusively on medical expenses.

SAIP medical benefits include:

• Emergency medical treatment for injuries sustained in car accidents, including hospital visits, diagnostic tests and initial care
• Serious injury coverage up to $250,000 specifically for brain and spinal cord injuries resulting from accidents
• Death benefit of $10,000 if a covered person dies as a result of a car accident

SAIP covers immediate medical care, like emergency room visits, X-rays, medications and initial treatment for accident-related injuries. For serious brain and spinal cord injuries, the policy provides substantial coverage up to $250,000, including surgery, specialized treatment and rehabilitation services.

If you're unsure whether you meet the eligibility requirements for dollar-a-day insurance, speak with a licensed car insurance agent in New Jersey. They verify your eligibility based on your Medicaid ID card information.

You must provide your current Medicaid ID card at each renewal to maintain SAIP coverage. If you're no longer enrolled during the policy term, you can remain covered, but you won't be eligible for renewal.

SAIP gets its name from its affordable cost structure: just $365 per year, which is exactly $1 per day. This makes it one of the most affordable insurance options available in New Jersey. 

You can get a $5 discount by paying the full annual premium upfront, bringing your total cost to $360 for the year. Alternatively, you can split the $365 into two installments, with half due at the time of purchase.

The low cost reflects the program's limited coverage scope, making it an accessible option for those who meet Medicaid eligibility requirements but can't afford standard insurance premiums.

SAIP provides only basic medical coverage, leaving significant gaps that result in large out-of-pocket costs. Understand these limitations before choosing this coverage. Major gaps include:

Property Damage and Liability

• Damage to other vehicles or property when you're at fault
• Legal liability for injuries you cause to other drivers or passengers
• Your own vehicle repairs from any type of accident
• Legal defense costs if you're sued after an accident

Extended Medical Treatment

• Ongoing treatment for common injuries like whiplash, which can require months of physical therapy
• Fracture treatment beyond initial emergency care, including surgery and rehabilitation
• Concussion follow-up care with specialists and cognitive therapy
• Most outpatient treatments already covered by your Medicaid benefits

Dollar-a-day insurance is designed for low-income New Jersey Medicaid recipients who can't afford standard coverage. It's a last-resort option that offers minimal protection, just enough to meet basic medical coverage requirements.

The decision often comes down to financial reality rather than the best choice. For low-income families unable to afford standard coverage, SAIP provides minimal legal compliance, but it should never be considered adequate protection. If possible, get at least the state minimum car insurance coverage to avoid serious financial consequences. Without it, you could be sued for damages and risk wage garnishment or asset seizure.

Before choosing dollar-a-day insurance, compare quotes. Minimum coverage policies from standard insurers often cost slightly more but offer better protection. MoneyGeek recommends full coverage if you can afford it, as it protects you and your vehicle.

Standard car insurance is better for most drivers given the small cost increase compared to dollar-a-day car insurance in New Jersey. Standard car insurance offers these benefits:

• Minimum bodily injury liability protection of $25,000 per person and $50,000 per accident. This coverage is not offered under the dollar-a-day program.
• Minimum property damage liability protection of $25,000 per accident. This is also not offered under the dollar-a-day policy.
• Personal injury protection with a minimum coverage of $15,000. This helps to cover medical expenses, rehabilitation, diagnostic procedures and future treatment resulting from the accident. The SAIP offers immediate medical treatment, but no further treatment is covered.

*Vehicle repairs require comprehensive and collision coverage

A basic policy is also available to New Jersey drivers. It has less coverage than the standard policy. There's no coverage for bodily injury liability with the basic policy, but there's an option for $10,000 in coverage for all persons injured in the accident. For property damage liability, the basic policy provides $5,000 per accident.

Though dollar-a-day car insurance sounds like an attractive price, the lack of coverage makes it a poor option for most New Jersey drivers. We analyzed minimum car insurance rates from major insurers in New Jersey for coverage at the state minimum level for an average driver.

We found the cheapest car insurance costs from Plymouth Rock, at an average of $2.18 per day. You can get more coverage and protection for only $1.18 more per day or $794 per year. Among nationally available companies, GEICO offers the lowest rates at $939 annually or around $2.57 per day. The table below shows the average annual premiums of the cheapest car insurance companies in New Jersey that offer state-minimum coverage.

New Jersey's dollar-a-day car insurance program provides minimal medical coverage for Medicaid recipients at a low cost. While this program helps those unable to afford standard insurance, it leaves you unprotected against liability, collision or comprehensive claims and doesn't meet state insurance requirements.

If possible, consider a minimum coverage policy, which offers better coverage for a modest cost increase (often as low as $2.18 per day). Use our tools to compare affordable options and find the right policy for your needs.

We answer common questions about dollar-a-day insurance in New Jersey.

Our Research Approach

Finding car insurance that fits your budget in New Jersey can feel overwhelming when rates vary between companies. A policy that costs one driver $50 per month might cost another $200 for identical coverage. We designed our research to show you how much you can save by comparing options, using real rate data from across the state.

We gathered quotes from Quadrant Information Services and state insurance departments, testing how different driver profiles and locations affect pricing. This approach reveals the true cost differences you'll encounter when shopping for coverage, helping you identify which companies offer the best value for your specific situation. 

Sample Driver Profile

Our baseline driver represents a typical New Jersey policyholder:

• 40-year-old man
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

We chose this profile because it reflects common characteristics among New Jersey drivers while avoiding factors that might skew results. The clean driving record and moderate annual mileage provide a neutral starting point for rate comparisons.

To capture the full range of pricing you might encounter, we adjusted this profile by age, vehicle type, credit score and driving record. This shows how companies price differently based on your personal circumstances.

Coverage Levels We Tested

For minimum coverage comparisons, we used New Jersey's required limits:

• $25,000 in bodily injury liability per person
• $50,000 in bodily injury liability per accident
• $25,000 in property damage liability per accident
• $15,000 in personal injury protection (PIP) per person

For the average full coverage policy cost, we included comprehensive and collision coverage with $1,000 deductibles and these liability limits (100/300/100):

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

These limits exceed New Jersey's minimum requirements but offer meaningful financial protection. The higher liability coverage protects your assets if you're at fault in a serious accident.

This research design lets you see both ends of the pricing spectrum: from basic legal compliance to comprehensive financial protection.

Learn more about MoneyGeek's car insurance methodology.