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

Dollar-a-day car insurance costs $365 per year, covering emergency medical care after accidents for New Jersey Medicaid recipients. National Continental issues the Special Automobile Insurance Policy (SAIP) with no liability, collision or comprehensive coverage. SAIP won't pay for damage to others' vehicles or repairs to your own.

That narrow scope comes with a legal upside: SAIP satisfies New Jersey's insurance requirement. The policy targets low-income drivers enrolled in Federal Medicaid with Hospitalization benefits who can't afford standard premiums.

SAIP covers emergency room visits, X-rays, medications and initial injury treatment after an accident. The policy pays for medical expenses only, with no liability or vehicle damage coverage included.

SAIP medical benefits cover:

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

SAIP stops paying after emergency care ends. Common injuries like whiplash can require months of physical therapy, broken bones require surgery and rehabilitation, and concussions require neurologist follow-ups and cognitive therapy. None of that is covered under SAIP.

Property damage is the biggest gap in SAIP coverage. SAIP pays nothing toward damage you cause to other vehicles or property, legal liability for injuries to other drivers or passengers, your own vehicle repairs or legal defense costs if you're sued.

Post-emergency medical treatment is also excluded from SAIP. Ongoing physical therapy for whiplash, fracture rehabilitation, concussion follow-ups with specialists and most outpatient care all fall outside SAIP's scope. Your Medicaid benefits may cover some of this, but SAIP won't contribute.

If you cause an accident, you're personally liable for all costs SAIP doesn't cover. Lawsuits, wage garnishment and asset seizure are all possible for costs a standard liability policy would pay. Injure another driver requiring $50,000 in medical treatment or cause $15,000 in vehicle damage and you owe every dollar out of pocket.

New Jersey drivers qualify for SAIP under certain conditions. Not all Medicaid programs are eligible. A licensed insurance agent can confirm your eligibility from the number on your Medicaid ID card.

To qualify, all of these requirements must be met:

• Active enrollment in the Federal Medicaid with Hospitalization program
• A valid New Jersey driver's license and current vehicle registration
• No existing auto insurance policy
• Ownership or regular access to a motor vehicle
• Every household member listed as a driver must carry eligible Medicaid coverage

Show your current Medicaid ID card at each renewal. Losing Medicaid eligibility mid-term won't cut your coverage short, but it will disqualify you from renewing. Confirm current requirements with New Jersey's SAIP program before applying, as eligibility follows both state regulations and federal Medicaid guidelines. Drivers should also verify that their NJ FamilyCare enrollment includes hospitalization benefits before submitting an application.

Dollar-a-day car insurance in New Jersey costs $365 per year, which equals $1 per day. Paying the full annual premium upfront reduces the cost to $360. You can also split the payment into two installments, with half due at purchase.

Most licensed insurance agencies in New Jersey process SAIP applications. You can also call the Personal Automobile Insurance Plan (PAIP) office directly at 1-800-652-2471. The state's online agent directory, searchable by county, lists participating agents near you.

Bring your valid New Jersey driver's license, vehicle registration and current Medicaid ID card to your appointment. National Continental issues all SAIP policies in New Jersey.

For most drivers, a standard minimum coverage policy is the better choice. The cheapest minimum coverage in New Jersey starts at $792 per year from Plymouth Rock. That's $427 more than SAIP annually, but it includes liability protection that SAIP doesn't offer. If you cause an accident without liability coverage, you're personally responsible for every dollar of damage and injury costs.

SAIP makes financial sense only if you can't afford a standard policy. No-down-payment car insurance and low-cost minimum coverage options are worth comparing before settling on SAIP.

*Vehicle repairs require comprehensive and collision coverage.

SAIP covers emergency care only. If you cause an accident, the other driver's bills and your own legal costs are yours to pay. It's a last resort for drivers who can't afford anything else, not a substitute for standard coverage.

New Jersey also offers a basic policy for drivers who can't afford standard coverage. The basic policy provides $5,000 in property damage liability per accident and an optional $10,000 for bodily injury to all persons in a crash. It costs less than a standard policy and provides liability protection that SAIP doesn't. If the extra cost of a standard policy is the only barrier, the basic policy closes most of the coverage gap at a lower price.

Plymouth Rock offers the cheapest car insurance in New Jersey at $792 per year for minimum coverage. That's $427 more than SAIP annually, but it includes bodily injury liability, property damage liability and PIP (personal injury protection) coverage. Full coverage from Plymouth Rock starts at $1,455 per year.

Full coverage car insurance in New Jersey averages $1,984 per year for a driver with a clean record. Drivers who own a high-value car, can't afford out-of-pocket repairs or want financial protection beyond liability coverage get the most value from it. For a full breakdown of what New Jersey drivers pay across all coverage levels and driver profiles, see the average cost of car insurance in New Jersey.

Plymouth Rock's minimum coverage costs $48 less per year than Selective, the next cheapest option. For drivers who don't qualify for SAIP, Plymouth Rock at $792 is the right starting point. It costs $1.17 more per day than SAIP but includes liability protection. Drivers who do qualify should run the full annual cost comparison before switching.

*We analyzed rates across all ZIP codes in New Jersey using data from Quadrant Information Services. Rates are for a driver with a clean record, for both minimum and full coverage.

Common questions about the New Jersey SAIP program and how it works in practice. These answers cover eligibility, coverage limits and what happens when your circumstances change.