New Jersey Dollar-a-Day Insurance (SAIP Plans)
Eligible low-income drivers in New Jersey can save on insurance with the state’s dollar-a-day insurance plans, but these plans don’t include much coverage.
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Written byMichelle Lambright Black
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Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more. She's also a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn't writing or speaking about credit and money, Michelle loves to travel with her family or read a good book. You can connect with Michelle on Instagram or Twitter.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated October 29, 2024
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New Jersey drivers facing financial hardship may qualify for the state’s Special Automotive Insurance Policy (SAIP) program. Commonly known as dollar-a-day insurance, the state’s SAIP plan provides medical coverage for some people enrolled in federal Medicaid health insurance.[1]
Not all drivers qualify for the dollar-a-day insurance plan. Even if you do qualify, you should compare your options to find the best policy for your situation. SAIP plans don’t technically meet the state’s minimum requirements for liability car insurance coverage, so it’s important to understand this auto policy’s limitations.
Here’s what you should know about New Jersey’s dollar-a-day insurance.
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What’s New Jersey’s dollar-a-day insurance plan?
New Jersey’s SAIP plan is a program that aims to make medical car insurance affordable for eligible drivers. The dollar-a-day insurance plan provides up to $250,000 in coverage for catastrophic and emergency treatment to low-income drivers who are enrolled in federal Medicaid programs and also receive hospitalization benefits. It also includes a $10,000 death benefit.[2]
Like many states, New Jersey requires drivers to carry a minimum amount of car insurance to legally operate a vehicle.[3] SAIP plans don’t include collision coverage or comprehensive coverage, which can cover damages to your personal vehicle. The plans also don’t include liability coverage for any damage or injuries you cause to other drivers.
The plans don’t meet the typical New Jersey minimum car insurance requirements. Yet drivers who qualify for this type of coverage can legally operate a motor vehicle within the state.
Important Information
New Jersey also offers a Personal Automobile Insurance Plan (NJPAIP). The NJPAIP helps high-risk drivers who may struggle to obtain car insurance coverage, though this coverage typically comes at a higher rate.[4]
Examples of high-risk drivers may include drivers with a history of car accidents, traffic violations, or bad credit. Newly licensed drivers, teen drivers, and drivers with SR-22 filings may also have difficulty finding affordable auto insurance coverage.
Who’s eligible for a New Jersey SAIP plan?
To qualify for the New Jersey dollar-a-day insurance plan, you need to meet the following criteria:
Enrollment in federal Medicaid with hospitalization coverage
Address with a New Jersey ZIP code (you’re a resident of the state)
Driver’s license (not revoked or suspended)
Vehicle registration (not revoked or suspended)
If you enroll in a New Jersey SAIP plan and your eligibility status changes, you might lose the ability to participate in the program in the future. If you lose your Medicaid benefits, your existing SAIP plan should stay in place until it’s up for renewal.
How to get dollar-a-day insurance in New Jersey
If you’re interested in applying for an SAIP plan in New Jersey, the following checklist should help you begin the process:
Connect with an insurance agent. Call the PAIP customer service number to locate a participating insurance agent in your county at 1 (800) 652-2471. Or you can search online for a participating PAIP producer.[5]
Prepare your documents. You’ll need to provide several documents with your application, including your driver’s license, vehicle registration, and the Medicaid ID card of any potential drivers that the policy may cover.
Pay for your coverage. You can pay for this coverage all at once or in two installments.
New Jersey dollar-a-day car insurance costs
As the nickname suggests, dollar-a-day insurance coverage under the New Jersey SAIP plan really costs about one dollar per day. If you pay for your insurance policy in two payments, the plan costs $365 per year. And if you pay for the full annual premium in a single lump sum, the policy costs $360.
The cost of SAIP coverage can add up to significant savings when you compare it to traditional car insurance. Average car insurance costs for New Jersey drivers are $120 per month ($1,442 per year) for liability coverage and $230 per month ($2,766 per year) for full-coverage insurance. Those costs are much higher than the national average insurance rates of $104 for liability car insurance and $211 for full coverage.
Yet it’s important to understand that SAIP plans don’t include liability coverage. So, if you get into an at-fault car accident, you’ll be responsible for paying for any damages you cause or any medical bills for other drivers or passengers out of pocket.
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Dollar-a-day car insurance vs. standard auto insurance coverage
Even if you satisfy the eligibility requirements for a New Jersey SAIP plan, you may find that a different coverage option better meets your auto insurance needs.
Before you apply for a new car insurance policy, take the time to compare the differences between the state’s three most common types of car insurance policies.
Coverage ▲▼ | Dollar-a-Day Insurance ▲▼ | NJ Basic Policy ▲▼ | NJ Standard Policy ▲▼ |
|---|---|---|---|
| Bodily injury liability | Not included |
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| Property damage liability | Not included | $5,000 per accident |
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| Personal injury protection | Up to $250,000 for emergency medical treatment of serious brain and spinal cord injuries |
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| Uninsured/underinsured motorist | Not included | Not included | Up to chosen liability coverage limit |
| Collision | Not included | Optional (with some insurance companies) | Optional |
| Comprehensive | Not included | Optional (with some insurance companies) | Optional |
New Jersey dollar-a-day insurance FAQs
It’s important to carefully consider which car insurance program best fits your needs. The following information can help you decide if the New Jersey dollar-a-day insurance program is right for you.
What’s the dollar-a-day insurance program in New Jersey?
The New Jersey SAIP plan, or dollar-a-day insurance, is a program that makes it easier for eligible low-income families in the state to find affordable car insurance coverage. SAIP insurance coverage costs between $300 and $365 per year. And even though the coverage doesn’t meet state insurance minimums, drivers who qualify for the insurance plan can legally operate a motor vehicle if they’re willing to accept the risks of limited coverage.
Who’s eligible for the dollar-a-day insurance in New Jersey?
To qualify for dollar-a-day insurance, you must be a New Jersey resident. Additionally, you need to show proof of enrollment in federal Medicaid with hospitalization coverage. Applicants must also possess a valid driver’s license and vehicle registration.
Who should get dollar-a-day insurance?
At $365 per year or less, the SAIP plan provides coverage at a much lower cost than standard insurance for low-income drivers. Even if you qualify for dollar-a-day insurance from the state, using this policy as your sole source of car insurance coverage is risky.
If you cause a car accident, you’ll be personally on the hook for any uncovered costs, including vehicle repairs and medical expenses. This can create a serious financial burden.
Is dollar-a-day insurance legal in NJ?
Yes. The New Jersey Department of Banking and Insurance offers the dollar-a-day or SAIP plan. It’s legal to participate in the dollar-a-day car insurance plan if you qualify to do so.
What’s the difference between New Jersey’s SAIP and PAIP?
New Jersey’s Special Automobile Insurance Policy (SAIP) plan is an income-based initiative that helps make auto insurance coverage more affordable to eligible drivers with limited financial resources.
The Personal Automobile Insurance Plan (PAIP) is a program that helps high-risk drivers find coverage when they’re unable to take out auto insurance in the New Jersey voluntary market.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- State of New Jersey Department of Banking & Insurance. "Special Automobile Insurance Policy (SAIP)."
- State of New Jersey Department of Banking and Insurance. "Special Automobile Insurance Policy: New Jersey's Income Restricted Policy."
- State of New Jersey Department of Banking & Insurance. "Get Legal with New Jersey's Basic Auto Insurance Policy."
- New Jersey Non Standard Insurance. "NJPAIP Car Insurance Consumer Help."
- New Jersey Department of Banking and Insurance. "Insurance."
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Michelle Lambright Black
Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more. She's also a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn't writing or speaking about credit and money, Michelle loves to travel with her family or read a good book. You can connect with Michelle on Instagram or Twitter.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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