Dollar-a-Day Insurance (New Jersey SAIP)


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Key Takeaways

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Dollar-a-day car insurance provides essential medical coverage for qualifying low-income New Jersey drivers enrolled in Medicaid with Hospitalization benefits.

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It costs $365 per year and covers immediate medical treatment after a car crash. It also provides a $10,000 death benefit if an insured person dies in the accident.

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The Special Auto Insurance Policy (SAIP) doesn’t meet New Jersey’s minimum car insurance requirements and lacks liability, collision and comprehensive coverage. It's only a last resort for those unable to afford standard insurance.

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What Is a Special Auto Insurance Policy (SAIP) in New Jersey?

Dollar-a-day car insurance, also called the Special Automobile Insurance Policy (SAIP), is a state program that provides affordable insurance for qualifying New Jersey residents. It serves people currently 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.

What Does Dollar-a-Day Insurance Cover?

SAIP provides essential medical coverage immediately after car accidents. 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.

HOW SAIP HELPS IN ACCIDENTS: REAL-WORLD EXAMPLE

Here's an example of how dollar-a-day insurance provides essential medical coverage when you need it most:

You're rear-ended at a red light and suffer whiplash. Without insurance, you'd face out-of-pocket costs for emergency care. SAIP covers your emergency room visit ($1,200), X-rays to check for injuries ($300) and prescription pain medication ($150). Thus, protecting you from $1,650 in immediate medical expenses. This coverage ensures you get the necessary treatment immediately without worrying about upfront costs, letting you focus on recovery instead of medical bills.

Who Is Eligible for a SAIP Insurance Policy?

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 can 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 may affect your SAIP coverage eligibility.

How to Apply for Dollar-a-Day Car Insurance

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.

Dollar-a-Day Insurance New Jersey Requirements

Most drivers in New Jersey won't qualify for dollar-a-day car insurance. Requirements to be eligible for this medical-only SAIP include:

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    Current enrollment in the Federal Medicaid with Hospitalization program (not all Medicaid programs are eligible)

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    Valid New Jersey driver's license and vehicle registration

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    One car per policy is eligible, but other household members can be listed drivers as long as they're also enrolled in an eligible Medicaid program

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    No existing car insurance coverage

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 can verify your eligibility based on your Medicaid ID card information.

You're required to 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.

How Much Is Dollar-a-Day Insurance?

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.

New Jersey Dollar-a-Day Insurance: What Isn't Covered?

SAIP provides only basic medical coverage, leaving significant gaps that could result in substantial 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
THE DOLLAR-A-DAY CAR INSURANCE COVERAGE GAP

If you cause an accident, you're personally liable for all damages SAIP doesn't cover. This means you could face lawsuits, wage garnishment and asset seizure for costs that standard liability policies usually handle. For example, if you injure another driver requiring $50,000 in medical treatment, or cause $15,000 in vehicle damage, you'd be personally responsible for these costs since SAIP provides no liability protection. 

This coverage gap exposes you to costs that standard liability policies typically handle, making it crucial to understand your potential out-of-pocket liability before choosing SAIP.

Should You Buy Dollar-a-Day Car Insurance?

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 optimal 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.

Why a Standard Policy Is Probably a Better Option

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 the following benefits:

  • Minimum bodily injury liability protection of $15,000 per person and $30,000 per accident. This coverage is not offered under the dollar-a-day program.
  • Minimum property damage liability protection of $5,000 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.
SAIP vs Standard Car Insurance Coverage Comparison
Protection Type
SAIP
Standard Policy

Your emergency medical care

✓ Covered

✓ Covered

Your ongoing medical treatment

✗ Very limited

✓ Up to $15,000 PIP

Other driver's injuries

✗ Not covered

✓ Up to $30,000

*Vehicle repairs require comprehensive and collision coverage

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MONEYGEEK EXPERT TIP

Find the best and cheapest car insurance rates for a standard policy by shopping around with multiple auto insurance companies. Pick the one with the best coverage for the lowest price to protect yourself and your family.

New Jersey Basic Policy

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 just $5,000 per accident.

Cheapest Car Insurance in New Jersey

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.

Cheapest Car Insurance Companies in New Jersey

Plymouth Rock Insurance$794
Selective Insurance$837
Geico$939
Amica$1,030
NJM Insurance$1,038
Farmers$1,236
Travelers$1,265
Progressive$1,376
Allstate$1,541
AIG$1,625
State Farm$1,824
Mercury Insurance$1,911
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IF YOU CAN AFFORD IT, A FULL COVERAGE POLICY IS THE BEST PROTECTION

Car insurance in New Jersey can be expensive. Full coverage averages $2,160 per year. But for many families, the financial protection it offers is well worth the cost.

Full coverage car insurance is a smart choice if you own a high-value car, can't afford costly repairs or want to avoid paying out of pocket for injuries or property damage. By shopping around, you can find affordable car insurance that provides comprehensive financial protection without straining your budget.

Dollar-a-Day Auto Insurance (New Jersey SAIP): Bottom Line

New Jersey's dollar-a-day car insurance program provides minimal medical coverage for Medicaid recipients at a low cost. While this program can help 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.

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Dollar-a-Day Insurance: FAQ

Below are answers to some of the most frequently asked questions about dollar-a-day insurance in New Jersey.

Who qualifies for dollar-a-day car insurance?

What does dollar-a-day car insurance cover?

Does my driving record affect SAIP eligibility?

What happens if my Medicaid benefits change?

How do I cancel my SAIP, and what are the consequences?

How does the claims process work with SAIP?

Can I cover multiple vehicles with SAIP?

What happens if I move out of New Jersey?

Is dollar-a-day car insurance available in Newark, Paterson, East Orange, Camden and other major metro areas in New Jersey?

Does MoneyGeek recommend dollar-a-day car insurance?

Dollar-a-Day Car Insurance: Our Methodology

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 male
  • 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.

A Dollar a Day Insurance: Related Pages

About Mark Fitzpatrick


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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.


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