What Is Dollar a Day Insurance?
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Dollar a day insurance is only available in New Jersey and–as its name suggests–costs roughly $365 a year.
Dollar a day insurance, otherwise known as SAIP (Special Automobile Insurance Policy), is a special type of car insurance that is offered by the state to some drivers who also benefit from Medicaid with a hospitalization plan.
Although you’ll be considered a legal driver with proof of insurance, dollar a day policies don’t technically meet the minimum car insurance requirements of New Jersey for the majority of drivers.
So, although it might be affordable upfront, dollar a day insurance could cost you big if you got into an at-fault accident.
If you’re looking for cheap car insurance, the better course of action is using the car insurance broker app Jerry. Drivers that switched minimum policies in NJ with Jerry saved an average of $1359!
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Dollar a day insurance in NJ
New Jersey residents on Medicaid are the only people eligible for dollar a day car insurance.
The coverage it provides is very limited, so it’s not an ideal solution for most drivers.
Although dollar a day insurance is technically legal, it doesn’t meet the state’s minimum coverage requirements for liability, collision, or comprehensive insurance.
With this policy, you will get coverage for extreme personal injury requiring emergency medical care–but you will be liable for covering any damage you cause to other people or things. For most accidents, dollar a day insurance just won’t cut it, and you’ll be left responsible for damages.
How much does SAIP insurance cost?
SAIP is commonly known as “dollar a day insurance” because it costs roughly $1 per day, or $365 annually.
The rate is so low because it’s subsidized by the state. It does not fluctuate based on your age, marital status, or driving record.
If you pay the full amount in a single payment, you qualify for a $5 discount. Otherwise, you will need to make two equal payments. The first payment, half of $365, will be due at the time you purchase the policy.
Dollar a day insurance coverage
Dollar a day insurance will cover:
- Your treatment in the emergency room immediately following the accident
- Ongoing medical treatment for brain and spinal cord injuries (limited to $250,000)
- Death benefit of $10,000, payable to your family if you die in an accident (average cost of a funeral)
What you would be responsible for in an accident
If you’re at-fault in an accident with dollar a day insurance, you will be responsible for:
- Your own medical treatments that do not relate to your brain or spinal cord
- All damage to others’ property if you were at fault
- Damage to your own vehicle or other property
- Injuries to other parties if you were at fault in the accident
SAIP does not offer any legal assistance. You could request medical coverage through Medicaid if you require treatment after an accident, but dollar a day insurance would not provide any help navigating this process.
If you’re on Medicaid, you’re probably trying to save money already. Without good car insurance, a costly accident could wreak havoc on your finances. If your policy doesn’t cover damages, you could be facing wage garnishment or even the seizing of assets.
Generally speaking, dollar a day car insurance is not a good option for any driver. Instead, try looking into a car insurance quote with Jerry. The average NJ driver saved $1359 when they switched to minimum insurance with Jerry.
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How to get a dollar a day car insurance
You can purchase dollar a day car policies from most insurance agencies in New Jersey.
You’ll need to show your driver’s license and Medicaid card to the insurance agent as proof of eligibility. Start by reaching out to the Personal Automobile Insurance Plan (PAIP) office in New Jersey at 1-800-652-2471.
Who is eligible for dollar a day insurance?
You must reside in New Jersey and be enrolled in Medicaid.
Qualifying for Medicaid is not enough to make you eligible for dollar a day insurance, as the insurance agent will need your Medicaid ID number to complete the purchase.
Further, you are only eligible if you are currently uninsured but have a valid license and registration. If you have an existing auto policy or revoked license, you cannot qualify for SAIP.
If you purchase dollar a day insurance and then cease to be enrolled in Medicaid, you will be able to keep your policy until your next renewal date. At that time, you will be considered ineligible and need to find another provider.
Multiple household members can be listed as drivers on SAIP, but they must all be registered in an eligible Medicaid program.
Frequently asked questions
Where is dollar a day insurance available?
Dollar a day insurance is only available to drivers in the state of New Jersey. It’s a state-subsidized car insurance policy available to low-income drivers, and is typically considered a last resort for auto insurance coverage.
Who can buy dollar a day insurance?
If you are enrolled in Medicaid and reside in New Jersey, you qualify for dollar a day car insurance. You must have a valid license and registration, and you may not have existing car insurance coverage.
What does dollar a day insurance cover?
Dollar a day insurance covers emergency treatment for the policyholder and a death benefit of $10,000. It does not cover non-emergency medical treatments, injuries to other parties, or property damage to any involved vehicles or objects.
That is why it’s a good idea to go with a more comprehensive policy with one of NJ’s many insurance agencies.
Finding cheap car insurance in NJ
At an annual cost of $365, SAIP coverage may sound affordable, but if you cause an accident you may have to pay thousands of dollars out of pocket to cover damages.
If you’re looking for cheap car insurance in New Jersey, there’s one more state-provided option you should be aware of: the Basic policy.
All NJ drivers are eligible for this insurance and it offers way better coverage than dollar a day car insurance. You can expect to pay around $400 per year for this policy.
If you want cheap car insurance quotes fast, go to Jerry. A licensed broker that offers end-to-end support, the free Jerry app gathers affordable quotes, helps switch plans or providers, and even cancels the old policy.
Most people are spending too much on car insurance! Here’s what drivers were paying before and after they switched minimum insurance policies with Jerry in New Jersey.
|Average annual premium before Jerry||Average annual premium after Jerry||Total savings|
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