Cheap Dollar-a-Day Insurance
Dollar-a-day insurance is a type of auto insurance that the New Jersey government offers to those who have Medicaid and meet other eligibility requirements. Drivers with dollar-a-day auto insurance, also known as the Special Automobile Insurance Policy (SAIP), are considered driving legally, but the policy does not meet NJ's car insurance requirements.
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UPDATED: Apr 9, 2021
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- Dollar-a-day insurance is an insurance policy offered by the New Jersey government to individuals who have Medicaid and meet other eligibility requirements.
- Dollar-a-day insurance is also known as the Special Automobile Insurance Policy (SAIP).
- You can purchase SAIP by making two payments per year that amount to $365 or one payment per year of $360.
- You can purchase SAIP from many car insurance agents in New Jersey.
Automobile insurance can be expensive, especially for those with relatively low incomes. Therefore, the New Jersey government offers the dollar-a-day insurance program. Below, we'll discuss what this is, what it covers, and how you can qualify.
If you need to buy dollar-a-day insurance or another form of New Jersey auto insurance coverage, enter your ZIP code above to compare auto insurance quotes from multiple companies in your area.
What is dollar-a-day insurance?
Dollar-a-day insurance, also known as the Special Automobile Insurance Policy (SAIP), is an insurance policy offered by the New Jersey government for individuals who have Medicaid and meet other requirements. It is underwritten by the National Continental Insurance Company.
Individuals who have dollar-a-day insurance in NJ may be considered as driving legally, but it does not meet the state's standard car insurance requirements.
The SAIP program offers coverage for the policyholder's medical treatments immediately following an accident, up to $250,000 in coverage for brain or spinal injuries, and a $10,000 death benefit.
You would be responsible for paying ongoing medical treatment for your injuries not related to the brain or spinal cord, medical treatment for others if you were at fault, damages to your property regardless of fault, and damage to others' property if you were at fault.
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How much does dollar-a-day auto insurance cost?
There are two different ways to pay your dollar-a-day auto insurance rates, which change the cost slightly.
If you pay for your policy in two installments per year, your policy will cost $365, which averages $1 per day. However, you can also pay your policy in one installment per year for $360.
This is much more affordable than many other auto insurance policies. However, there are no opportunities for saving on the SAIP. For example, if you have to insure more than one vehicle, you must buy a separate policy instead of bundling.
Who qualifies for dollar-a-day insurance?
To qualify for dollar-a-day insurance, you cannot already have an existing auto insurance policy. The policyholders and other insured drivers must have a Medicaid policy with hospitalization coverage.
You cannot just qualify for Medicaid to be eligible for the SAIP. Instead, you must have an active Medicaid policy. If your Medicaid policy ends during your SAIP term, your policy will stay in effect until your renewal date. Your license and registration must also be in good standing to qualify.
You can purchase SAIP insurance from many auto insurance agents in New Jersey. You will need to provide your driver's license and Medicaid card.
If you need help finding affordable auto insurance in New Jersey, enter your ZIP code into our free quote comparison tool below.