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

Dollar-a-day car insurance costs exactly $365 per year ($1 per day) and provides emergency medical coverage after car accidents for New Jersey Medicaid recipients. The Special Automobile Insurance Policy (SAIP) excludes liability, collision and comprehensive coverage. It won't pay for damage you cause to others or repairs to your own vehicle.

Despite these limitations, SAIP policyholders are legally insured under New Jersey law. The program serves as a last-resort option for low-income drivers enrolled in Federal Medicaid with Hospitalization benefits who can't afford standard insurance premiums.

SAIP covers emergency medical treatment immediately after car accidents with no deductible. Check what's covered and the limitations before applying. The policy focuses exclusively on medical expenses and provides no liability or vehicle damage coverage.

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

SAIP eligibility targets qualifying New Jersey residents with strict income and insurance requirements. Check these criteria before starting 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. You can't have access to other automobile insurance coverage. You must own or regularly drive a motor vehicle.

Eligibility requirements change with state regulations and federal Medicaid guidelines. Confirm current requirements by visiting New Jersey's SAIP website or contacting the program directly before applying. 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 can purchase dollar-a-day car insurance two ways:

• Through any licensed insurance broker who offers SAIP coverage (no additional fees)
• Directly from the Personal Automobile Insurance Plan (PAIP) New Jersey office at 1-800-652-2471

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

SAIP gets its name from its cost structure: $365 per year, exactly $1 per day. This is one of the cheapest insurance options in New Jersey.

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

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

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 remain covered but won't be eligible for renewal.

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 targets 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.

This decision reflects financial reality more than ideal choice. For low-income families who can't afford standard coverage, SAIP provides minimal legal compliance but leaves you personally liable for any damage you cause. Injure another driver requiring $50,000 in treatment or cause $15,000 in vehicle damage? You're responsible for those costs.

Compare quotes before choosing dollar-a-day insurance. Minimum coverage policies from standard insurers cost slightly more but offer better protection. MoneyGeek recommends full coverage if you can afford it. It covers damage to your own vehicle plus liability coverage.

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

Dollar-a-day car insurance sounds attractive, but 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 from Plymouth Rock at $2.18 per day of the companies MoneyGeek surveyed in New Jersey. You 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. This program helps those who can't afford standard insurance but leaves you unprotected against liability, collision or comprehensive claims and doesn't meet state insurance requirements.

If possible, consider a minimum coverage policy. It offers better coverage for a modest cost increase (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.

Finding car insurance that fits your budget in New Jersey feels 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 save by comparing options, using real rate data from across the state.