New Jersey Dollar-a-Day Insurance (SAIP Plans)
Eligible low-income drivers in New Jersey can save on insurance with the state’s dollar-a-day insurance plans, but these plans don’t include much coverage.
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New Jersey drivers facing financial hardship may qualify for the state’s Special Automotive Insurance Policy (SAIP) program. Commonly known as dollar-a-day insurance, the state’s SAIP plan provides medical coverage for some people enrolled in federal Medicaid health insurance.1
Not all drivers qualify for the dollar-a-day insurance plan. Even if you do qualify, you should compare your options to find the best policy for your situation. SAIP plans don’t technically meet the state’s minimum requirements for liability car insurance coverage, so it’s important to understand this auto policy’s limitations.
Here’s what you should know about New Jersey’s dollar-a-day insurance.
What’s New Jersey’s dollar-a-day insurance plan?
New Jersey’s SAIP plan is a program that aims to make medical car insurance affordable for eligible drivers. The dollar-a-day insurance plan provides up to $250,000 in coverage for catastrophic and emergency treatment to low-income drivers who are enrolled in federal Medicaid programs and also receive hospitalization benefits. It also includes a $10,000 death benefit.2
Like many states, New Jersey requires drivers to carry a minimum amount of car insurance to legally operate a vehicle.3 SAIP plans don’t include collision coverage or comprehensive coverage, which can cover damages to your personal vehicle. The plans also don’t include liability coverage for any damage or injuries you cause to other drivers.
The plans don’t meet the typical New Jersey minimum car insurance requirements. Yet drivers who qualify for this type of coverage can legally operate a motor vehicle within the state.
Who’s eligible for a New Jersey SAIP plan?
To qualify for the New Jersey dollar-a-day insurance plan, you need to meet the following criteria:
Enrollment in federal Medicaid with hospitalization coverage
Address with a New Jersey ZIP code (you’re a resident of the state)
Driver’s license (not revoked or suspended)
Vehicle registration (not revoked or suspended)
If you enroll in a New Jersey SAIP plan and your eligibility status changes, you might lose the ability to participate in the program in the future. If you lose your Medicaid benefits, your existing SAIP plan should stay in place until it’s up for renewal.
How to get dollar-a-day insurance in New Jersey
If you’re interested in applying for an SAIP plan in New Jersey, the following checklist should help you begin the process:
Connect with an insurance agent. Call the PAIP customer service number to locate a participating insurance agent in your county at 1 (800) 652-2471. Or you can search online for a participating PAIP producer.5
Prepare your documents. You’ll need to provide several documents with your application, including your driver’s license, vehicle registration, and the Medicaid ID card of any potential drivers that the policy may cover.
Pay for your coverage. You can pay for this coverage all at once or in two installments.
New Jersey dollar-a-day car insurance costs
As the nickname suggests, dollar-a-day insurance coverage under the New Jersey SAIP plan really costs about one dollar per day. If you pay for your insurance policy in two payments, the plan costs $365 per year. And if you pay for the full annual premium in a single lump sum, the policy costs $360.
The cost of SAIP coverage can add up to significant savings when you compare it to traditional car insurance. Average car insurance costs for New Jersey drivers are $161 per month ($1,936 per year) for liability coverage and $225 per month ($2,699 per year) for full-coverage insurance. Those costs are much higher than the national average insurance rates of $104 for liability car insurance and $184 for full coverage.
Yet it’s important to understand that SAIP plans don’t include liability coverage. So, if you get into an at-fault car accident, you’ll be responsible for paying for any damages you cause or any medical bills for other drivers or passengers out of pocket.
Dollar-a-day car insurance vs. standard auto insurance coverage
Even if you satisfy the eligibility requirements for a New Jersey SAIP plan, you may find that a different coverage option better meets your auto insurance needs.
Before you apply for a new car insurance policy, take the time to compare the differences between the state’s three most common types of car insurance policies.