Dollar a Day Car Insurance in New Jersey: Cost, Coverage and Eligibility
Written by licensed insurance agent Andy walker
Reviewed by the Alias Insurance editorial team.
Dollar a day car insurance is the common name for New Jersey’s Special Automobile Insurance Policy, also called SAIP. It is a state authorized program that offers limited medical auto insurance to people who qualify for Federal Medicaid with hospitalization.
The New Jersey Department of Banking and Insurance states that SAIP costs $365 for one year when paid in two installments or $360 when the annual premium is paid up front. Despite the name, you do not buy coverage one day at a time. The term “dollar a day” comes from the annual cost of about $1 per day.
SAIP is not the same as regular liability insurance or a broader auto policy. It covers emergency treatment after an accident, treatment for serious brain and spinal cord injuries up to $250,000, and a $10,000 death benefit. It does not cover liability for injuries or property damage you cause, and it does not cover collision or comprehensive damage to your own vehicle.
That distinction matters. A low annual premium can help an eligible driver obtain the special protection offered by SAIP, but the policy leaves major financial risks uncovered.
If you do not qualify for SAIP or want broader protection, you can compare other car insurance options based on your state, coverage needs, vehicle, driving record, and budget.
Dollar a Day Car Insurance at a Glance
| Feature | New Jersey SAIP |
| Official name | Special Automobile Insurance Policy |
| State | New Jersey |
| Annual cost | $365 in two installments |
| Up front annual payment | $360 |
| Main eligibility | Federal Medicaid with hospitalization |
| Emergency medical treatment | Included |
| Serious brain and spinal cord treatment | Up to $250,000 |
| Death benefit | $10,000 |
| Liability coverage | Not included |
| Collision coverage | Not included |
| Comprehensive coverage | Not included |
| Uninsured motorist coverage | Not available |
| Vehicles per policy | One |
| Monthly payment plan | Not listed by NJDOBI |
The New Jersey Department of Banking and Insurance provides the official SAIP eligibility, cost, coverage, payment, and application information.
What Is Dollar a Day Car Insurance?
Dollar a day auto insurance is New Jersey’s Special Automobile Insurance Policy for certain Medicaid recipients who need a low cost form of limited auto insurance.
The program is designed for people who may otherwise have trouble affording car insurance because of limited financial resources.
The official price explains the nickname.
A $365 annual premium works out to about $1 per day.
However, SAIP should not be confused with traditional auto insurance. Its protection focuses mainly on certain medical expenses rather than liability or vehicle damage.
The New Jersey Department of Banking and Insurance describes SAIP as a medical coverage only policy.
Who Qualifies for Dollar a Day Car Insurance?
The main eligibility requirement is enrollment in Federal Medicaid with hospitalization.
Not every Medicaid program qualifies.
An insurance producer can check the number on your Medicaid identification card to determine whether your specific coverage qualifies for SAIP. New Jersey also explains that qualifying coverage may be connected with certain NJ FamilyCare programs that include hospitalization.
You should generally be prepared to meet these conditions:
- You are enrolled in qualifying Federal Medicaid with hospitalization.
- Each person who will be covered has qualifying Medicaid enrollment.
- Your driver’s license is not revoked or suspended.
- Your vehicle registration is not revoked or suspended.
- You can provide the required Medicaid identification card, vehicle registration, and driver information.
The state does not say that every person enrolled in Medicaid automatically qualifies. Your exact Medicaid program matters.
Can You Qualify With a Bad Driving Record?
A poor driving record does not automatically prevent you from obtaining SAIP.
The New Jersey Department of Banking and Insurance specifically states that you cannot obtain the policy if your driver’s license or registration is revoked or suspended.
Drivers dealing with a suspended license can also read about car insurance with a suspended license to understand other coverage issues that may apply.
How Much Does Dollar a Day Auto Insurance Cost?
The official SAIP price is simple.
| Payment option | Cost |
| Pay the full year up front | $360 |
| Pay in two installments | $365 total |
The New Jersey Department of Banking and Insurance confirms both payment options.
There is no need to estimate the SAIP premium using a driver’s age, vehicle model, ZIP code, or standard coverage limits because the state lists the program price directly.
However, the $365 price applies to SAIP itself. It should not be used as an estimate for a Basic Policy, Standard Policy, liability policy, or broader auto insurance.
Those policies are priced differently and can vary by insurer and driver.
What Does Dollar a Day Car Insurance Cover?
SAIP provides a narrow set of medical benefits.
According to New Jersey’s official program information, the policy covers:
- Emergency treatment immediately following an automobile accident.
- Treatment for serious brain and spinal cord injuries up to $250,000.
- A $10,000 death benefit.
These benefits can provide important protection after a serious crash, but they should not be mistaken for standard liability or vehicle protection.
What Does Dollar a Day Insurance Not Cover?
The exclusions are just as important as the benefits.
SAIP does not provide several protections many drivers associate with regular car insurance.
| Coverage | Included in SAIP? |
| Emergency medical treatment | Yes |
| Serious brain and spinal cord treatment | Yes, subject to the $250,000 limit |
| Death benefit | Yes, $10,000 |
| Bodily injury liability | No |
| Property damage liability | No |
| Collision | No |
| Comprehensive | No |
| Uninsured motorist coverage | No |
| Underinsured motorist coverage | No |
| Damage to your own vehicle | No |
| Routine outpatient treatment covered through Medicaid | No under SAIP |
New Jersey’s SAIP information states that the policy does not pay for damage you cause to another person or property. It also does not pay for collision or comprehensive damage to your own car. The state’s insurance purchasing planner shows that liability, uninsured motorist, underinsured motorist, collision, and comprehensive coverage are not available through the Special Automobile Insurance Policy.
What Happens If You Cause an Accident With SAIP?
SAIP does not contain liability coverage for injuries or property damage you cause to other people.
For example, suppose you cause a crash that damages another driver’s car.
SAIP does not pay for that vehicle damage.
If another person is injured and you are legally responsible for the loss, SAIP does not provide bodily injury liability protection for that person’s claim.
This creates a financial risk that should be considered before choosing the policy.
Drivers who want protection against claims for injuries or property damage can learn more about liability car insurance.
Does Dollar a Day Insurance Cover Damage to Your Own Car?
No.
SAIP does not provide collision or comprehensive coverage.
Collision coverage generally helps pay for covered damage to your vehicle after a crash.
Comprehensive coverage generally applies to covered losses such as theft, vandalism, fire, weather damage, and some other losses that are not collisions.
Those protections are not part of SAIP.
Drivers who want protection for their own vehicle can review the differences between full coverage car insurance and limited coverage options.
The term “full coverage” is not one standardized policy. It commonly refers to a combination of liability, collision, and comprehensive coverage, subject to the insurer and policy selected.
Is Dollar a Day Insurance Legal in New Jersey?
Yes. SAIP is an authorized New Jersey special automobile insurance program for eligible Medicaid recipients.
It is important, however, to understand what that means.
SAIP is not the same as New Jersey’s Basic Policy or Standard Policy. It was created as a separate special policy with limited medical protection for qualifying drivers.
New Jersey’s own consumer insurance resources list three different personal auto policy categories:
- Standard Policy
- Basic Policy
- Special Automobile Insurance Policy
Each provides a different level of protection.
Do not assume that holding SAIP gives you all the liability and vehicle protection found in a broader policy.
SAIP Versus New Jersey Basic and Standard Car Insurance
New Jersey drivers may have several policy options.
| Feature | SAIP | Basic Policy | Standard Policy |
| Primary purpose | Limited medical protection for qualifying Medicaid recipients | Lower cost insurance option with limited protection | Broader insurance choices |
| Medicaid eligibility required | Yes | No special Medicaid requirement | No special Medicaid requirement |
| Fixed SAIP price | Yes | No | No |
| Liability protection | Not included | Some liability protection is included or available under state rules | Liability coverage included |
| PIP protection | Limited SAIP emergency benefits | Included | Included |
| Collision | Not available | May be available from some insurers | Optional |
| Comprehensive | Not available | May be available from some insurers | Optional |
| Best suited for | Drivers who meet SAIP rules and understand its narrow coverage | Drivers seeking lower cost protection with broader benefits than SAIP | Drivers who want more coverage choices |
New Jersey describes the Basic Policy as a lower cost option that provides less protection than the Standard Policy. The Standard Policy gives drivers more coverage choices and the option to purchase additional protection.
The best option depends on what you qualify for, what you can afford, and how much financial risk you are willing to keep.
Dollar a Day Insurance Is Not One Day Car Insurance
The names sound similar, but the products are different.
Dollar a day insurance refers to the annual New Jersey SAIP program that costs about one dollar per day when the yearly cost is divided across 365 days.
One day car insurance refers to coverage intended for a short period.
SAIP does not expire after one day, and it is not purchased one day at a time.
Drivers looking for coverage for a borrowed vehicle, temporary driving need, or other short period should research temporary car insurance rather than assuming SAIP provides daily coverage.
Can More Than One Driver Use the Same SAIP Policy?
Yes, in some households.
The New Jersey Department of Banking and Insurance states that if one household has one car and several people enrolled in qualifying Medicaid, eligible household members can be covered under the same policy.
However, there can only be one vehicle per SAIP policy.
The policy covers only people who meet the Medicaid requirement.
What Happens If You Lose Medicaid After Buying SAIP?
Losing Medicaid during the policy term does not automatically cancel the SAIP policy.
The state says applicants must prove Medicaid enrollment when the policy is first issued and at each renewal.
If Medicaid coverage ends during the policy term, the policy does not immediately cancel. The insured will continue to receive only the limited benefits provided by the policy until the term ends. Continued eligibility must be established again when renewing.
Do not wait until the expiration date to look for replacement coverage if you know you will no longer qualify.
How Do You Apply for Dollar a Day Car Insurance?
Eligible New Jersey drivers can obtain SAIP through many insurance agencies that participate in the program.
The New Jersey Department of Banking and Insurance directs drivers to the Personal Automobile Insurance Plan, known as PAIP, if they need help locating a producer.
Step 1: Check Your Medicaid Coverage
Confirm that your Medicaid program includes the hospitalization benefits required for SAIP.
Not all Medicaid programs qualify.
Step 2: Gather Your Documents
The state says applicants should bring:
- Driver’s licenses for all operators who will be covered.
- Vehicle registration.
- Medicaid identification cards showing qualifying enrollment for each person who will be covered.
Step 3: Find a PAIP Producer
You can search for a participating PAIP producer through the New Jersey Department of Banking and Insurance.
The state also lists the PAIP customer service number as 1 800 652 2471.
Step 4: Choose a Payment Option
You can pay $360 for the full year up front or $365 through two installments.
Step 5: Confirm Your Policy Before Driving
Make sure the application has been accepted and that you have valid proof showing when your coverage becomes effective.
Do not assume that completing an application alone means coverage has started.
NJDOBI states that National Continental Insurance Company writes SAIP policies.
What If You Do Not Qualify for Dollar a Day Insurance?
Dollar a day auto insurance is tied to New Jersey’s SAIP eligibility rules.
If your Medicaid coverage does not qualify, your license or registration prevents eligibility, or you live outside New Jersey, compare other available options.
Possible choices can include:
- A New Jersey Basic Policy.
- A Standard Policy.
- A liability focused policy appropriate for your state and situation.
- Available discounts from private insurers.
- Other programs designed for drivers with limited income where available.
You can start with the Alias Insurance guide to low income car insurance to understand other ways to search for affordable coverage.
Insurance laws, required limits, policy choices, and assistance programs vary by state. Check your state insurance regulator when you are unsure which rules apply.
What Should You Compare Before Choosing an Alternative?
Price matters, but it should not be the only factor.
Compare these details before purchasing another policy:
| Compare | Why it matters |
| Total premium | Shows the actual insurance cost |
| Amount due today | Helps with your immediate budget |
| Liability limits | Shows protection for covered claims against you |
| PIP or medical coverage | Helps explain accident injury protection |
| Collision | Shows whether covered crash damage to your car may be protected |
| Comprehensive | Shows whether certain noncollision losses may be protected |
| Deductibles | Shows how much you may pay on applicable claims |
| Exclusions | Explains situations the policy does not cover |
| Payment schedule | Shows when future payments are due |
| Effective date | Confirms when coverage begins |
If your goal is simply to satisfy required insurance rules, review minimum car insurance coverage you legally need before selecting coverage based only on the lowest price.
Common Dollar a Day Insurance Mistakes
Assuming It Costs One Dollar for One Day of Coverage
SAIP is an annual policy. Its nickname comes from the approximate daily cost of the annual premium.
Assuming Medicaid Automatically Qualifies You
Not every Medicaid plan qualifies. Federal Medicaid with hospitalization is required.
Assuming SAIP Pays for Damage You Cause
It does not provide liability protection for injuries or property damage you cause.
Assuming Your Car Is Protected
SAIP does not include collision or comprehensive coverage.
Ignoring Your License or Registration Status
A revoked or suspended license or registration can prevent you from obtaining SAIP.
Comparing SAIP Only by Price
The premium is low because the coverage is narrow. Compare what is covered as carefully as you compare price.
Frequently Asked Questions About Dollar a Day Car Insurance
No. The New Jersey Department of Banking and Insurance states that you cannot obtain SAIP if your driver’s license or vehicle registration is revoked or suspended.
The state lists two payment options. The policy costs $360 if paid in full up front or $365 when paid in two installments. A monthly payment option is not listed for SAIP.
No. New Jersey states that only one vehicle can be covered by each SAIP policy. Several eligible Medicaid drivers in one household may be covered on the same policy when there is only one vehicle.
No. SAIP does not provide property damage liability coverage. If you are responsible for damaging someone else’s vehicle or other property, SAIP does not pay that property damage claim.
The specific Dollar a Day program discussed on this page is New Jersey’s Special Automobile Insurance Policy. Drivers in other states should check their own insurance department for affordable insurance programs and compare private market quotes available where they live.
No. SAIP provides limited medical benefits. It does not include liability, collision, comprehensive, uninsured motorist, or underinsured motorist coverage. Broader policies provide different protection depending on the coverage selected.
Find Coverage That Fits Your Situation
Dollar a day car insurance can provide an affordable special option for New Jersey drivers who meet the Medicaid requirements, but the low price comes with significant coverage limits.
Before applying, confirm your Medicaid eligibility and understand exactly what SAIP does not cover. If you can afford broader protection, compare the cost and benefits of a Basic Policy, Standard Policy, or another available auto insurance option.
Alias Insurance helps U.S. drivers compare car insurance quote options based on their location, coverage needs, vehicle, and driver profile. Quote availability, premiums, payment options, underwriting rules, and coverage terms vary by insurer and state.
References and Sources
- New Jersey Department of Banking and Insurance: Special Automobile Insurance Policy
- New Jersey Department of Banking and Insurance: Auto Insurance Purchasing Planner for SAIP
- New Jersey Department of Banking and Insurance: Basic Auto Insurance Policy
- New Jersey Department of Banking and Insurance: Standard Auto Insurance Policy
- New Jersey Driver Resources: Special Automobile Insurance Policy