Dollar-a-Day Auto Insurance (2024)
Dollar-a-day auto insurance is a government insurance policy offered to New Jersey residents who meet specific requirements. It generally costs $365 per year, which is where it gets its nickname. It doesn't meet the minimum liability requirements for New Jersey but still allows covered individuals to drive legally. Read more below about how to get dollar-a-day auto insurance.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jun 22, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 22, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Dollar-a-day insurance is a government auto insurance plan in New Jersey that typically costs $365 per year.
- It covers some of your medical bills but does not meet the minimum liability requirements in New Jersey.
- To qualify, you must be uninsured, have Medicaid, and have a license and registration in good standing.
If you’re looking for cheap New Jersey auto insurance, the dollar-a-day insurance policy may be right for you. But you must meet certain requirements to be qualified for the plan.
Read more below about dollar-a-day insurance, what it covers, and how you can get it.
If you need help comparing auto insurance rates, use our free quote comparison tool above by entering your ZIP code.
What is dollar-a-day insurance?
Dollar-a-day auto insurance, also known as the New Jersey Special Automobile Insurance Policy (SAIP), is a government auto insurance plan that offers affordable auto insurance to qualified drivers.
What is the cost of NJ SAIP insurance?
The program got its nickname “dollar a day insurance,” because it generally costs $365 per year.
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What does dollar-a-day insurance cover?
While those who qualify for dollar-a-day insurance are legally allowed to drive with the coverage, the policy does not actually meet New Jersey’s minimum requirements for insurance.
It will cover up to $250,000 in emergency medical care for the policyholder immediately after an accident, as well as care for brain or spinal cord injuries. It also offers a $10,000 death benefit if you were to die during a collision, but it doesn’t offer liability insurance coverage.
What does SAIP not cover?
Because of the limited New Jersey dollar-a-day car insurance coverage, you would be responsible for paying ongoing medical treatments that don’t pertain to your brain or spinal cord, injuries to other parties, damage to others’ property, and damage to your own property.
However, many individuals who qualify for dollar-a-day car insurance would not be able to afford these, so it may be better just to seek out a more expensive, but less limited policy. There are other ways to save money on car insurance for low-income individuals.
How can I get dollar-a-day auto insurance?
What are the requirements for dollar-a-day insurance?
Here’s how to get dollar-a-day insurance in NJ and who can qualify for dollar-a-day insurance.
In order to qualify for dollar-a-day insurance in NJ, you must:
- Be uninsured
- Be enrolled in Medicaid (along with other drivers in your household) that includes hospitalization coverage
- Have a driver’s license and registration that are in good standing
You can buy dollar-a-day auto insurance through the National Continental Insurance Company or speak to a Personal Auto Insurance Plan (PAIP) producer.
Conclusion
Dollar-a-day insurance is a government insurance plan in New Jersey. It typically costs $365 per year, which is where it gets its name.
It will generally only cover your emergency medical bills immediately after an accident, ongoing treatment for brain or spinal cord injuries, and a $10,000 death benefit if you die during a collision.
To qualify, you must be uninsured, have Medicaid, and have a license and registration that is in good standing.
If you need help finding auto insurance, use our free tool below by entering your ZIP code to compare auto insurance quotes today.
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Frequently Asked Questions
What is Dollar-a-Day Auto Insurance?
Dollar-a-Day Auto Insurance is a specialized auto insurance program available in certain states that provides limited coverage at a low cost to eligible low-income individuals who meet specific criteria. It is designed to help individuals who may have difficulty affording standard auto insurance policies.
Which states offer Dollar-a-Day Auto Insurance?
Dollar-a-Day Auto Insurance is currently available in the state of New Jersey. It is not available in other states at the time of this response.
Who is eligible for Dollar-a-Day Auto Insurance?
Eligibility requirements for Dollar-a-Day Auto Insurance vary by state and program. In New Jersey, to be eligible, individuals must meet specific criteria related to income, Medicaid eligibility, and participation in certain assistance programs such as Temporary Assistance for Needy Families (TANF) or the General Assistance (GA) program.
What coverage does Dollar-a-Day Auto Insurance provide?
Dollar-a-Day Auto Insurance provides limited coverage for specific circumstances. In New Jersey, the coverage includes medical expense benefits for emergency treatment following an accident, as well as coverage for some funeral expenses. It does not provide liability coverage or coverage for damages to your own vehicle.
How much does Dollar-a-Day Auto Insurance cost?
Dollar-a-Day Auto Insurance is designed to be affordable for eligible individuals. In New Jersey, it costs $365 per year, which is where the program gets its name. However, it’s important to note that additional fees and surcharges may apply, making the actual cost slightly higher.
Can I upgrade my Dollar-a-Day Auto Insurance to a full coverage policy?
No, Dollar-a-Day Auto Insurance is a specialized program that provides limited coverage and is not upgradable to a full coverage policy. If you require more comprehensive coverage, you would need to explore other auto insurance options available in your state.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.