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

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Katie Powers

By: Katie Powers

Edited by Jackie Cohen

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

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.

Quick Facts

  • New Jersey’s SAIP program covers emergency treatment in the event of an accident.
  • Some enrolled in the federal Medicaid program have eligibility for the NJSAIP program.
  • Car insurance rates vary on a number of factors related to driving profile and history.

What is the dollar-a-day insurance program?

What is the Dollar-a-Day program in New Jersey?

This special program for NJ drivers can help cover medical costs after a car accident.

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

CoveredNot Covered
If an accident occurs, emergency treatment for the policyholder.Additional medical treatment beyond brain and spinal cord injuries treatment.
As much as $250,000 covered for treatment of brain and spinal cord injuries of the policyholder.Any costs related to injuries to the other driver and damages to their property.
If a policyholder dies in an accident, their family will receive a $10,000 death benefit.Policyholder vehicle damage.

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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 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.

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

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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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 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.

See More: Cheap Car Insurance

What to Consider Before Signing Up for the Program

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.

See More: Best and Worst Sites to Compare Car Insurance

How to Save on Car Insurance in New Jersey

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.

Frequently Asked Questions

  • The New Jersey SAIP, or dollar-a-day, insurance program through the New Jersey Department of Banking and Insurance provides eligible low-income drivers with limited coverage for a low yearly price. For no more than $365 a year, policyholders have coverage below the state minimum requirement that allows them to continue driving on the road legally and insured.

  • Eligibility requirements for an individual include status as a New Jersey resident, no existing auto insurance policy, enrollment in the federal Medicaid program with hospitalization, and possession of a valid ID card with a driver’s license and registration. Not all people enrolled in Medicaid qualify for SAIP, and those with a revoked or suspended license do not qualify either.

  • Drivers covered under the New Jersey dollar-a-day insurance program have less coverage than what is required by state minimum requirements. Coverage in the event of an accident includes emergency treatment of the policyholder, as much as $250,000 in brain and spinal cord injury treatment of the policyholder, and $10,000 death benefit for the deceased policyholder’s family.

  • Finding cheap car insurance requires potential policyholders to shop around for the best available prices and coverage. The costs of insurance coverage regularly fluctuate, meaning a provider that meets your needs at a cheap price may not do the same in the next policy period. Insurify’s quote-comparison tool helps users find affordable available rates from top providers.

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  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Katie Powers
Katie Powers
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Insurance Writer

Katie Powers is an insurance writer at Insurify with expertise in personal finance and auto insurance topics. She strives to help consumers make better financial decisions. Prior to joining Insurify, she completed her undergraduate and graduate degrees at Emerson College. Her work has been published in St. Louis Magazine, the Boston Globe, and elsewhere. Connect with Katie on LinkedIn.

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