120+ more*Quotes generated for Insurify users from New Jersey within the last 10 days. Last updated on August 2, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users from New Jersey within the last 10 days. Last updated on August 2, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Updated
Drivers who receive Medicaid with hospitalization benefits may be eligible for NJ’s SAIP program.
The SAIP plan covers emergency medical treatment, catastrophic injury care, and a death benefit for the eligible driver. It doesn’t cover the cost of property damage or injuries you cause to others in a crash.
The SAIP plan allows you to legally drive without buying the state’s standard minimum coverages.
It’s relatively affordable, at only $365 per year, but protection is very limited.
New Jersey’s Special Automobile Insurance Policy (SAIP) is a program that provides affordable auto insurance coverage to eligible NJ drivers. The SAIP is a state-run initiative that offers medical-only protection to eligible Medicaid recipients for $365 per year, or about a dollar a day.[1]
The SAIP program is for low-income drivers who might otherwise go completely uninsured due to New Jersey’s high insurance costs. SAIP insurance allows you to legally drive in the state without meeting the state’s minimum car insurance requirements.
The SAIP is cheaper than standard NJ auto policies, but the protection it offers is extremely limited.
New Jersey residents who are recipients of federal Medicaid with hospitalization benefits are eligible for the SAIP plan. Not everyone receiving Medicaid will qualify for the SAIP.
You may qualify for SAIP benefits if you meet the following three requirements:
You receive federal Medicaid with hospitalization benefits.
You’re currently uninsured.
You have a valid driver’s license.
You can use SAIP to cover only one vehicle, as there is a “one car per policy” rule. But you can have multiple eligible drivers on the same policy.
Compare quotes to get the best financial protection for your car
To determine your eligibility for the SAIP, ask a licensed insurance agent to verify your eligibility using the number on your Medicaid ID card.[2]
When applying for the SAIP program, bring your Medicaid ID card, driver’s license, and vehicle registration with you to your insurance agency. If you have questions about the SAIP or how to apply, call the state’s customer service phone number at 1 (800) 652-2471 for help.
New Jersey’s dollar-a-day car insurance application process is straightforward and completely free.
Here are the steps to apply for the dollar-a-day plan:
Confirm your eligibility.
Gather your driver’s license, licenses for all vehicle operators, and your vehicle registration.
Contact an insurance agent or agency, search for a producer on the state’s website, or call the customer service number.
Complete the application.
Pay the premium in one or two installments.
Be sure to double-check the SAIP program requirements and information on the state’s website, as details can change.
The SAIP plan covers emergency medical treatment after a car accident, catastrophic injury care, and a death benefit.
Here’s a breakdown of each coverage type:
Emergency medical treatment and catastrophic injury care: SAIP provides emergency medical coverage following an accident, as well as treatment for serious brain and spinal cord injuries, up to $250,000. It doesn’t cover injuries you cause to someone else.
Death benefit: If you die in a car accident, the SAIP provides your survivors with a $10,000 death benefit.
New Jersey offers drivers three types of auto insurance policies: standard, basic, and SAIP. All three allow you to drive legally in the Garden State, but their level of financial protection varies significantly.
The following table shows how the SAIP stacks up against NJ’s basic and standard auto policies.[3]
Coverage Type | SAIP | NJ Basic Policy | NJ Standard Policy |
|---|---|---|---|
| Emergency medical expenses / personal injury protection (PIP) | Up to $250,000 for your own medical treatment | $15,000 PIP per person, per accident; up to $250,000 for certain injuries | $15,000 PIP per person or accident; up to $250,000 or more |
| Property damage liability | None | $5,000 per accident | $25,000 to $100,000 or more per accident |
| Bodily injury liability | None | Coverage not included but $10,000 coverage for all persons, per accident, available as an option | $35,000–$250,000 per person, $70,000–$500,000 per accident |
| Collision damage to your car | None | Available as an option from some insurers | Available as an option |
| Comprehensive damage to your car | None | Available as an option from some insurers | Available as an option |
| Legal to drive | Yes | Yes | Yes |
New Jersey’s dollar-a-day car insurance doesn’t cover your liability for any property damage or bodily injury you cause to others in an at-fault accident. And it won’t pay to repair or replace your car.
Here’s what the SAIP plan doesn’t cover:
Liability insurance: The SAIP doesn’t cover any bodily injuries or property damage you cause to others in a car accident. For example, if you’re at fault in a collision that does $5,000 worth of damage to the other vehicle, the other driver could sue you to get that money.
Property damage to your own vehicle: You’ll also be on the hook for any repair or replacement costs for your vehicle if you cause an accident.
Outpatient medical treatment: The SAIP doesn’t cover the costs of outpatient medical care, such as doctor’s visits (though your Medicaid benefits might).
Again, buying SAIP coverage allows you to legally drive, but you’ll be personally responsible for any property damage or bodily injury costs you cause in an at-fault crash. For more robust coverage, many drivers consider collision and comprehensive coverage, but it’s more expensive. And you can’t add collision and comprehensive coverages to an SAIP plan.
Who’s an SAIP plan best for?
“The SAIP really is meant to be a last resort for Medicaid-eligible drivers who just don’t have the ability to pay for standard car insurance. It gets you on the road legally, but the financial risk is high if you cause an accident.”
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Dollar-a-day car insurance allows you to legally drive in New Jersey. Once approved for an SAIP plan, you’ll receive proof of auto insurance. But keep in mind the SAIP doesn’t meet NJ’s standard minimum car insurance requirements, leaving you with less protection on the road.
Standard car insurance policies in New Jersey require:[4]
Property damage liability: $25,000 per accident
Bodily injury liability: $35,000 per person, $70,000 per accident
Personal injury protection (PIP): $15,000 per person, per accident
While SAIP coverage is an exception to minimum coverage that the state created to allow certain Medicaid recipients to legally drive, it does involve significant financial risk. For example, if you cause injuries or damages to other people in an accident, the SAIP won’t cover the costs.
Minimum-coverage rates in New Jersey start as low as $125/mo.
Before pursuing an SAIP, it’s a good idea to carefully consider the advantages and disadvantages of this low-cost, barebones insurance plan.
More affordable than traditional NJ car insurance policies
Allows you to drive legally without meeting the state’s minimum coverage requirements
Provides a death benefit in the event of a fatal accident
Extremely limited protection
Must have Medicaid with hospitalization benefits to qualify
Premium must be paid in one or two installments (monthly payments not available)
New Jersey’s dollar-a-day insurance plan costs $365 per year if you pay in two installments or $360 if you pay for the entire year up front. It’s free to apply for the SAIP plan.
SAIP car insurance is significantly cheaper than average auto insurance rates in New Jersey. In the Garden State, average liability-only rates are $2,192 annually, while full coverage averages $3,048 per year.
Unlike standard car insurance, SAIP premiums don’t vary based on your driving record, credit, or ZIP code, since it’s a state-funded program. Various factors can affect standard and basic car insurance policy costs in New Jersey, including your driving record, age, and vehicle type.
NJ’s dollar-a-day car insurance can be worth it for eligible drivers who can’t afford traditional insurance. But because of its limited protection, you should view it as a last resort. It’s only better than the alternative of driving uninsured or not being able to drive at all.
The SAIP plan is financially risky because it won’t cover the costs of injuries or property damage you cause in a car accident.
Many New Jersey drivers who need cheap coverage won’t qualify for the SAIP. Even if you do qualify for dollar-a-day coverage, it’s a good idea to compare the costs of better coverage and see if you can find a good deal.
Below, we’ve broken down the different types of auto insurance coverage available in New Jersey.
Coverage Option | Estimated Cost | Liability Coverage | Vehicle Coverage |
|---|---|---|---|
| SAIP (dollar-a-day insurance) | $360–$365/year | No | No |
| NJ Basic Policy | $183/month | Yes (property damage only, bodily injury available as add-on) | Available as an option from some insurers |
| New Jersey Personal Automobile Insurance Plan (PAIP) | $295/month | Yes | Available as an option |
| Pay-per-mile insurance | Varies based on base rate and miles driven per month | Yes | Available as an option |
| Flexible payment car insurance | $183/month | Yes | Available as an option |
| NJ Standard Policy | $254/month | Yes | Available as an option |
New Jersey’s basic auto policy includes property damage liability and personal injury protection. You can choose to add $10,000 in bodily injury liability coverage.
NJPAIP is New Jersey’s assigned-risk insurance plan for high-risk drivers who haven’t been able to get standard insurance due to driving violations or accumulated license points.
A pay-per-mile car insurance policy charges you based on how much you actually use your vehicle. You’ll pay a monthly base rate and an additional rate for every mile you drive in a month. Pay-per-mile insurance can be a good option for people who don’t drive much.
A flexible payment insurance plan, like Insurify Car, allows drivers to pay for coverage in small, weekly increments.
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A standard auto policy in New Jersey includes liability coverage and higher policy limits. You can also add full coverage to a standard policy for the best financial protection.
Remember, you must have car insurance to legally drive in NJ. Driving without insurance can result in hefty fines and license suspension.
In New Jersey, dollar-a-day car insurance is available for qualifying Medicaid recipients, but the requirements and coverage limitations can be unclear. Explore answers to these frequently asked questions about the New Jersey SAIP below.
The SAIP program covers only one vehicle per policy. But it can cover more than one qualified driver in the same household.
Your policy won’t be canceled if you lose your Medicaid benefits while enrolled in the SAIP, but you may run into issues at renewal.
The cheapest company for car insurance in New Jersey is NJM, with an average liability rate of $125 per month, according to Insurify data.
The SAIP doesn’t cover damages to the other driver’s car if you cause an accident. Because SAIP is only for people with limited financial resources, it provides coverage only for your emergency medical treatment and critical injuries, as well as a death benefit.
No, you can’t get SAIP coverage if your license is suspended or if you have a revoked vehicle registration.
Insurify data scientists analyzed more than 250 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 500+ 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:
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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AFCPE Accredited Financial Counselor
6 years experience in the personal financial industry
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
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