Is Dollar-A-Day Car Insurance in New Jersey Legit?

Last Updated on February 5, 2026

Yes — Dollar-a-Day car insurance in New Jersey is legit. It’s officially called the Special Automobile Insurance Policy (SAIP), and it’s a state-created, ultra-low-cost policy for drivers who qualify for Federal Medicaid with hospitalization.

But there’s a big catch: SAIP is not “regular” car insurance. It’s medical-only coverage with major gaps — including no liability coverage if you cause an accident. So while it can keep eligible drivers from being uninsured, it can also leave you financially exposed in a serious crash.

If you’re shopping for New Jersey car insurance because traditional policies are out of reach, here’s what SAIP is, who qualifies, what it covers, and when it’s (and isn’t) a smart move.

• Yes — Dollar-a-Day insurance (NJ SAIP) is a real, state-authorized program for drivers enrolled in Federal Medicaid with hospitalization.
• SAIP costs $360/year if paid in full (or $365/year in two installments), which averages to about $1 per day.
• Coverage is extremely limited: it generally covers emergency treatment after an accident, catastrophic brain/spinal injuries up to $250,000, and a $10,000 death benefit.
• SAIP does NOT include liability or vehicle-damage coverage, meaning you can be personally responsible if you cause injuries or property damage in a crash.

Eligibility for Dollar-a-Day Car Insurance

SAIP is only available to people currently enrolled in Federal Medicaid with hospitalization. Not every Medicaid plan qualifies, so an agent/producer usually verifies eligibility using the identification number on your Medicaid card. If you’re unsure how Medicaid ties into auto coverage, see whether Medicaid covers auto insurance.

There are also a few practical requirements that can disqualify you:

• You must have a valid (not suspended or revoked) driver’s license and valid vehicle registration.
• The policy can cover only one vehicle per policy, and it only covers people in the household who are also eligible for the qualifying Medicaid program.

SAIP exists for people who genuinely can’t afford car insurance anymore — especially in a state where premiums can run high for many drivers.

How to Get a Dollar-a-Day Policy

You can usually buy SAIP through most New Jersey insurance agencies. If you don’t know where to start, New Jersey’s Department of Banking and Insurance points consumers to the Personal Automobile Insurance Plan (PAIP) customer service line at 1-800-652-2471, or you can use the state’s producer search tool.

Official resources:

• SAIP program overview (NJ DOBI): https://www.nj.gov/dobi/division_consumers/insurance/saip.htm
• NJ “Auto Insurance Purchasing Planner” (SAIP page): https://nj.gov/dobi/autoplanner/frmdollaradayincrestpol.htm
• Find a PAIP producer: https://www.nj.gov/cgi-bin/dobi/paip/paipmenu.cgi

How Much Does Dollar-a-Day Insurance Cost in NJ?

Despite the nickname, SAIP is priced annually:

• $360 per year if you pay the full premium up front
• $365 per year if you pay in two installments

That’s why it’s often called “Dollar-a-Day” — it averages out to about $1/day, and it’s one of the lowest-cost ways for eligible drivers to carry any form of auto insurance.

What Dollar-a-Day Car Insurance Covers

SAIP is a bare-bones policy, but it does provide meaningful medical protection in specific situations. According to NJ’s program description, it covers:

• Emergency treatment immediately following an accident
• Treatment for serious brain and spinal cord injuries up to $250,000
• A $10,000 death benefit

In plain English: SAIP is designed to keep catastrophic medical costs from crushing Medicaid-eligible drivers and hospitals after a crash.

What the Policy Does Not Cover (The Big Risks)

This is the part many drivers don’t fully understand until it’s too late. SAIP does not cover:

• Liability coverage for injuries or property damage you cause to other people (meaning you can be personally responsible for the bills)
• Damage to your own vehicle (no collision or comprehensive)
• Most outpatient care (like routine doctor visits and non-emergency follow-up treatments covered by Medicaid)
• Legal defense if you’re sued after an accident

Because there’s no liability coverage, SAIP can be financially dangerous if you cause a crash — especially if property damage exceeds insurance coverage (or, in this case, you have no coverage at all for damage you cause). That’s a major reason many people who qualify still choose a Basic or Standard policy if they can afford it.

Is SAIP “Legal” If NJ Requires Liability Insurance?

New Jersey requires drivers to carry insurance and show proof of it, and the MVC outlines mandatory coverages for registered vehicles. SAIP is a state-authorized program meant to reduce uninsured driving among Medicaid recipients, but it’s still medical-only and leaves you exposed if you’re at fault.

Practical takeaway: SAIP may be a lifeline if it’s truly your only option — but don’t confuse “legal to carry” with “financially protective.” If you’re driving often, have assets/income at risk, or worry about being sued, you may want more coverage than SAIP offers.

When Dollar-a-Day Insurance Makes Sense

SAIP can make sense if:

• You qualify (Medicaid with hospitalization) and otherwise would be uninsured
• You mainly need protection from catastrophic medical bills after a crash
• You drive limited miles and your risk of causing a major accident is relatively low

It’s also worth noting that premium costs in NJ can be steep for some drivers — see why car insurance is so expensive in New Jersey for common pricing factors that can make standard coverage feel impossible to buy.

Better Alternatives If You Can Swing It

If you don’t qualify for SAIP — or you qualify but want more protection — consider these options:

• NJ Basic Policy: Often the lowest-cost option that includes some liability and PIP (still limited, but far more protective than SAIP).
• Shop multiple insurers: Even in NJ, prices can vary widely — start with the cheapest auto insurance companies and compare quotes.
• Other assistance/low-income paths: If you’re looking beyond NJ-specific programs, here are low-income auto insurance options in the U.S. that may help depending on your situation.

Applying for the Policy: What to Bring

To apply, you’ll typically need:

• Your valid driver’s license (and the licenses of all operators)
• Your vehicle registration
• Your Medicaid ID card showing eligibility for Medicaid with hospitalization

For a broader checklist of paperwork insurers commonly request, see what documents you need to insure your car.

Renewals and Losing Medicaid Eligibility

You must prove Medicaid eligibility when the policy starts and at every renewal. If you lose eligibility mid-term, the policy typically won’t cancel immediately — but you’ll only receive the policy’s limited benefits until you’re eligible again (and you’ll need to re-qualify at renewal). If you’re wondering how policy terms usually work, here’s how auto insurance renewals typically function.

FAQs on Dollar-a-Day Car Insurance in New Jersey (SAIP)

Bottom Line: Is Dollar-a-Day Insurance “Worth It?”

SAIP is absolutely real — and for drivers who qualify and can’t afford anything else, it can be a critical safety net. Just go in with eyes open: it’s medical-only, and it won’t protect you financially if you cause an accident. If you can afford even a small step up in coverage, a Basic or Standard policy is often the safer long-term choice.

If you’re ever involved in a serious crash (especially one involving injuries or lawsuits), it may be worth learning when to hire an auto insurance lawyer so you understand your options.