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

Dollar-a-day car insurance costs $365 per year and provides emergency medical coverage after car accidents for New Jersey Medicaid recipients. National Continental issues the Special Automobile Insurance Policy (SAIP), which excludes liability, collision and comprehensive coverage. SAIP 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. Low-income drivers enrolled in Federal Medicaid with Hospitalization benefits who can't afford standard premiums are its intended users.

SAIP covers emergency medical care after an accident, including emergency room visits, X-rays, medications and initial treatment for injuries. The policy covers medical expenses only 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 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, you must meet all of these requirements:

• Current enrollment in the Federal Medicaid with Hospitalization program
• Valid New Jersey driver's license and vehicle registration
• No existing car insurance coverage
• Ownership or regular use of a motor vehicle
• All household members listed as drivers must also be enrolled in an eligible Medicaid program

You must show your current Medicaid ID card at each renewal. If you lose Medicaid eligibility during the policy term, you remain covered through that term but won't qualify for renewal. Confirm current requirements with New Jersey's SAIP program before applying, as eligibility follows state regulations and federal Medicaid guidelines. Drivers seeking Medicaid car insurance in New Jersey should also verify that their NJ FamilyCare (New Jersey's Medicaid program) enrollment includes hospitalization benefits.

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

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.

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.