New Jersey’s Dollar-a-Day Program (Updated August 2022)

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 varies on a number of factors, but the reality is many would benefit from such a program or from affordable car insurance premiums. To find the most affordable insurance rates that meet your insurance needs, utilize Insurify’s thorough quote-comparison tool to compare the nation’s leading auto insurance providers with ease.

The New Jersey SAIP or dollar-a-day car insurance program from the New Jersey Department of Banking and Insurance provides affordable coverage for financially strapped drivers. Written by the National Continental Insurance Company, policies offer minimal coverage that does not meet typical state requirements but allows drivers to continue driving legally in the state.

The SAIP program exists to prevent individuals struggling financially from driving without car insurance. Though the program does not include liability coverage, uninsured motorist coverage, and 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

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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 New Jersey resident, not have a current auto insurance policy, have a valid ID card with a driver’s license and registration, and be enrolled in the program for federal Medicaid with hospitalization. This program, however, does not apply for all of those enrolled in Medicaid.

Some individuals enrolled in the New Jersey dollar-a-day program may lose their qualification for the federal Medicaid program during an existing policy period. If this occurs for an enrolled driver, the policyholder’s SAIP policy will remain in place until it is up for renewal. By the time the policy expires, the driver must look into other insurance quotes and coverage options.

In order 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.

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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 offers financially strapped drivers a way to continue driving their car 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 below the state minimum requirements, car accidents resulting in bodily injury or property damage of the policyholder and other involved drivers will likely result in fairly costly bills in the end.

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As with all car insurance policy options and programs, individuals must consider a number of factors prior to signing 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 does not replace the recommended collision coverage provided by a standard policy.

Even though the price tag does not exceed one dollar a day, policyholders will be on the hook for financial costs that accompany an accident. Without comprehensive coverage, low-income drivers will likely struggle to pay for medical expenses and outpatient treatments not covered by Medicaid and costs typically covered by injury liability and property damage liability insurance.

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

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Insurance providers consider multiple factors in determining monthly car insurance costs, including an individual’s driving record, desired coverage, credit history, state and city location, and more. Insurance options for drivers with clean driving records typically earn the lowest insurance premiums available, depending on additional discount eligibility requirements.

With Insurify as an online resource, users can access the thorough quote-comparison tool to compare monthly insurance rates from the convenience of their couch. With just a few clicks, users can compare quotes from dozens of the nation’s top car insurance providers. Compare today to find the most affordable rates available that match your specific car insurance needs.