New Jersey’s dollar-a-day program is a subsidized car insurance plan available to certain uninsured residents on Medicaid at a rate of $1/day.
Dollar a day insurance only covers emergency room treatment, limited ongoing medical costs, and death benefits for loved ones.
Instead of buying an SAIP policy, compare car insurance quotes to find affordable coverage that meets New Jersey’s insurance requirements.
Why buying New Jersey’s dollar a day car insurance is a huge mistake
New Jersey’s so-called dollar-a-day insurance program doesn’t meet the state of New Jersey’s legal requirements for minimum auto insurance coverage and leaves drivers exposed to serious financial risks.
If you get into a car accident with only a dollar-a-day policy, you will be financially responsible for:
Any ongoing medical costs not directly related to a brain or spinal cord injury, including outpatient treatment
All injuries to other parties (e.g. drivers, passengers, and pedestrians), including emergency treatment
Any court costs associated with a personal injury lawsuit
Any property damage you may have caused
Any damage to your own vehicle or personal property
The New Jersey SAIP: Just the facts
Who can buy it: Anyone with a valid New Jersey driver’s license who is (1) enrolled in federal Medicaid with hospitalization and (2) currently uninsured.
How much it costs: SAIP policyholders have two choices: (1) pay for insurance in two installments for a total cost of $365 per year, or (2) pay in a single upfront sum for a total cost of $360 per year—which makes your plan a 98¢ a day policy.
What it covers: Emergency medical treatment, any ongoing medical care for critical brain and spinal cord injuries, and death benefits.
What it won’t cover: Liability claims, collision damage, or comprehensive claims.
SAIP nightmares: A real driver’s experience
In 2017, Reddit user JMilk21 shared their experience with New Jersey’s dollar a day insurance on the
“In 2015, on my sister's birthday, I was the one who got hit. Sitting at a red light on route 1-9 I was struck from behind and pushed into the 2 cars in front of me. My airbags were on recall and did not deploy. I was taken away in an ambulance and my car was totaled.
Since then, I have done every possible means of therapy, surgery, medication and more. I have lost my ability to work, ability to walk without a cane, the ability to exercise normally, robbed of a social life, lost my 6 year relationship due to financial stresses associated with the accident and mostly my dignity. I was just starting my career and was excited to work and progress. Now, in the prime years of my life, I am getting passed up by younger and more physically capable people. [...]
My point is not to garner sympathy, but to explain that the person that hit me that day drove away from that accident and likely has no idea about the daily challenges and medical bills I am buried by. My point is to say I am [a] 31 year old graduate from Rutgers who was excited about life and being a contributing member of society, and partially because of the "Dollar A Day" policy, that has been taken from me. Drivers can drive without consequence or risk freely and it is dangerous and incomprehensible to me that this policy exists.”
The right move: find a cheap auto insurance policy for as little as $3 per day
Instead of paying $1 per day for dangerously low coverage, look for cheap car insurance that meets the state’s minimum legal requirements for as little as an average of $3.06 per day.
A standard car insurance policy in New Jersey includes:
At least $25,000 per person / $50,000 per accident of
Optional collision and comprehensive coverage from all insurance companies
On average, a standard policy costs New Jersey drivers around $1,118 per year or a little over $3 a day.
Don’t forget the basics: As an alternative to a standard auto insurance policy, New Jersey also allows drivers to purchase a Basic Policy, which includes just $5,000 of property damage liability per accident and $15,000 of personal injury protection (PIP) and comes with a limited right to sue other drivers.
Cheapest car insurance companies in New Jersey for minimum coverage
To find the cheapest car insurance coverage in New Jersey, compare auto insurance quotes from at least three to five different insurance providers. The table below shows average car insurance rates for some of New Jersey’s leading insurance providers.
Expert Tip Keep in mind that if your vehicle is financed, you may need to purchase collision coverage and comprehensive coverage to meet your lender’s requirements.
was pretty amazing. They found me quotes with every company at the cheapest price possible! Then I decided which company and coverage I preferred. As a new, young driver, I had a great experience!.” —Sean E.
FAQs
What does SAIP insurance cover?
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New Jersey’s Special Automobile Insurance Plan (SAIP) covers emergency medical treatment, ongoing costs associated with spinal cord and brain injuries, and death benefits.
It should only be purchased as a last resort. Other insurance options, including New Jersey’s Basic Policy, provide a safer amount of coverage at a low price.
What are the state minimum requirements for car insurance in NJ?
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Under state law, all New Jersey drivers must carry certain amounts of bodily injury and property damage liability insurance and personal injury protection (PIP). Uninsured/underinsured motorist coverage is optional.
Do you need to be enrolled in Medicaid for dollar a day insurance?
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Yes. Enrollment in a federal Medicaid program with hospitalization benefits is one of the eligibility requirements for the NJ SAIP. To buy an SAIP plan, you’ll need your Medicaid ID card along with your driver’s license.
Who administers the Special Automobile Insurance Plan?
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The National Continental Insurance Company, a subsidiary of Progressive, writes one dollar a day policies under the NJ SAIP.
How can I find cheap car insurance with a ticket in New Jersey?
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The New Jersey Personal Automobile Insurance Plan (NJ PAIP) is an assigned-risk car insurance program that provides low-cost coverage to high-risk drivers in New Jersey. If multiple insurance agencies have denied you coverage, you may be able to get affordable insurance through the NJPAIP.
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