New Jersey's Special Auto Insurance Policy (SAIP)  

The state of New Jersey offers a unique insurance program called the Special Automobile Insurance Policy, or SAIP. Better known as Dollar-A-Day car insurance, this program offers limited auto insurance for recipients of Medicaid, aiming to make car insurance more affordable for people more likely to go uninsured because of financial limitations.

What Dollar-A-Day insurance covers

This program offers limited insurance, covering emergency medical treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit.

This program does not offer liability or comprehensive coverage, meaning you are not covered if you incur damage to someone’s person or property or to your own vehicle. Without liability coverage, SAIP participants do not meet the state minimum regulations for auto insurance coverage and can be held legally liable for cases of damage to others or their property.

 

New Jersey's Dollar-A-Day program only allows one car per policy, even if there is more than one person in your household who has Federal Medicaid with hospitalization. All eligible drivers in the same household can be covered on the same policy as long as there is only one vehicle.

Unlimited Medical Coverage

 

Who is eligible for a New Jersey SAIP policy?

SAIP is made for drivers who are eligible for federal Medicaid with hospitalization. Not all Medicaid plans qualify for this program; an insurance agent will be able to confirm whether or not you are eligible for NJSAIP by the number on your Medicaid ID. You must be uninsured in order to apply for this policy.

How to get Dollar-A-Day insurance

Most insurance agencies in New Jersey can issue a Special Auto Insurance Policy to eligible applicants. You can also contact the Personal Auto Insurance Plan customer service line by calling 1-800-652-2471. Officially, SAIP is issued by the National Continental Insurance Company. The plan costs $365 for a one-year policy period if you pay in two installments, and $360 per year if you pay up front.

purchasing insurance

New Jersey Dollar-A-Day insurance FAQs

Will NJSAIP insurance be cancelled if Medicaid benefits are discontinued?
Applicants for the SAIP policy are required to prove enrollment in Medicaid at the time of application and each renewal. If you are de-enrolled from Medicaid during the policy period, the policy will not end immediately: you will retain coverage until the policy expiration date. Once your policy period expires, however, you will need to apply for a different car insurance policy with another provider.
Can I get a Dollar-A-Day policy if I have a bad driving record?
 
What documents are needed to apply for NJSAIP insurance?
 

Affordable auto insurance options in New Jersey

If you don't qualify for SAIP or are no longer eligible to receive the benefits of this program, your best bet for finding affordable car insurance is by shopping around. The Zebra has compiled a list of affordable car insurance providers in New Jersey. Enter your ZIP code below to compare quotes from companies offering coverage in New Jersey.

Auto insurance data methodology

The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.

In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.

What's the cheapest car insurance company in New Jersey?

Rank Company Name Annual Premium
1 Travelers $1,168
2 Cal Casualty $1,466
3 NJM $1,558
4 State Farm $1,759
5 Penn National $1,776
6 Metlife $1,971
7 Progressive $2,003
8 Mercury $2,332
9 Allstate $2,656
10 Hanover $5,194

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Is SAIP insurance worth it?

Because this program does not meet state minimum requirements and will not cover your or the other party's vehicle in the event of a collision, New Jersey's Dollar-A-Day program should be considered a last resort solution.

While its target policyholders already face financial limitations, choosing a program that leaves you financially vulnerable and unprotected is a risk. If involved in an accident, you will be held financially responsible for damages to the other party's person or property, which may be more difficult for recipients of Medicaid programs to be able to afford. This policy is best for low-risk drivers who drive infrequently and have exhausted all other coverage options.