New Jersey’s Dollar-a-Day Program (2023)

New Jersey drivers struggling to make car insurance payments on top of all of life’s other expenses may have a solution in the Special Automobile Insurance Policy (SAIP or NJSAIP), depending on their eligibility. Known as a dollar-a-day program, the SAIP provides drivers with limited coverage below typical state minimum requirements to allow them to drive legally.

Eligibility for New Jersey’s dollar-a-day program depends on a number of factors. But the reality is that many would benefit from such a program or from affordable car insurance premiums. To afford car insurance, many drivers turn to online quote comparisons to find the best policies for them.

What is the dollar-a-day insurance program?

The New Jersey SAIP from the New Jersey Department of Banking and Insurance is also known as the dollar-a-day car insurance program. It provides affordable coverage to financially struggling drivers. Underwritten by the National Continental Insurance Company, policies offer minimal coverage that doesn’t meet typical state requirements but allows drivers to continue driving legally in the state.

The SAIP program exists to prevent those struggling financially from driving without car insurance. Though the program doesn’t include liability coverage, uninsured motorist coverage, or personal injury protection required by state minimum guidelines, it offers eligible New Jersey drivers a way to remain insured. The dollar-a-day program costs $365 per year.

Coverage Under the New Jersey Dollar-a-Day Program

Who is eligible for the New Jersey dollar-a-day program?

The dollar-a-day program is a unique car insurance option for New Jersey drivers.

Eligibility for the New Jersey dollar-a-day program relies on a number of factors. A person must be a resident of New Jersey; must not have a current auto insurance policy; must have a valid ID card, driver’s license, and registration; and must be enrolled in federal Medicaid with hospitalization. This SAIP program, however, doesn’t apply to everyone enrolled in Medicaid.

Some drivers enrolled in the New Jersey dollar-a-day program might lose their qualification for Medicaid during a policy period. If this happens, the SAIP policy will remain in place until it’s up for renewal. Before the policy expires, the driver must look into other insurance quotes and coverage options.

How do you apply for dollar-a-day coverage?

To apply for the New Jersey dollar-a-day program, applicants must find a local Personal Automobile Insurance Plan (PAIP) producer or call 1 (800) 652-2471. Applicants must bring documents with them to apply, including the driver’s licenses and the Medicaid ID cards of any potential drivers to be covered under the policy, as well as the driver’s vehicle registration.

How much does a dollar-a-day program really cost?

Though it may be hard to believe, the New Jersey dollar-a-day policy really does just cost a dollar a day. The program costs those enrolled $365 per year in two separate installments. Those who pay the yearly fee up front pay $5 less, $360 a year. The New Jersey SAIP insurance program allows drivers to continue driving their cars legally.

Though the program is very affordable when looking at the yearly cost, it certainly does come with some additional risks. Because the program provides limited coverage that is below the state minimum requirements, car accidents resulting in bodily injury or property damage will likely result in fairly costly bills in the end.

What to Consider Before Signing Up for the Program

As with all car insurance policy options and programs, you should consider a number of factors before you sign up for the New Jersey SAIP program. With this program in particular, there is a lot to consider. The car insurance coverage provided through the SAIP program doesn’t replace the recommended coverage provided by a standard policy.

Even though the price tag doesn’t exceed one dollar per day, policyholders will be on the hook for costs that accompany an accident. Without full coverage, low-income drivers will likely struggle to pay for medical expenses and outpatient treatments not covered by Medicaid and costs typically covered by personal injury protection and collision coverage.

Due to the associated financial risks, Insurify only recommends insurance coverage with SAIP for New Jersey drivers as a last resort. If possible, enroll in auto insurance coverage that meets New Jersey’s state minimum insurance requirements. This is a better option for most drivers. A basic policy will provide better protection in the event of a car collision.

How to Save on Car Insurance in New Jersey

Insurance providers consider multiple factors when determining monthly costs, including your driving record, desired coverage, credit history, state, city, and more. People with clean driving records typically earn the lowest insurance premiums, depending on additional discount eligibility requirements.

When drivers compare quotes online, they find the most affordable rates available that match their specific car insurance needs.