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

Last Updated on March 31, 2023

Believe it or not, some drivers in New Jersey might be eligible for auto insurance coverage that only costs one dollar per day. Dollar-a-Day Car Insurance through NJ SAIP exists to provide auto insurance to drivers who would otherwise likely be uninsured. The sad truth is some people simply cannot afford auto insurance for a variety of reasons. Some drivers have terrible driving records and are slapped with egregiously high monthly rates through “regular” auto insurance providers. Others simply do not make enough money to pay the $100 to $200 per month for auto insurance. Dollar-a-Day Car Insurance is here for these cash-strapped drivers.

Table of Contents:

• Who qualifies for Dollar-a-Day Car Insurance?
• How do you buy Dollar-a-Day Car Insurance?
• How much coverage do you get?
• How much does Dollar-a-Day Car Insurance cost?
• What does Dollar-a-Day Car Insurance not cover?
• Does Dollar-a-Day Car Insurance make sense for you?
• How do you apply for coverage?

Eligibility for Dollar-a-Day Car Insurance

Those currently enrolled in certain programs are automatically eligible for Dollar-a-Day Car Insurance. As an example, Federal Medicaid With Hospitalization enrollees are eligible for Dollar-a-Day Car Insurance. Yet not every single Medicaid program qualifies for this unique type of auto insurance. When in doubt, have the insurance provider representative check to determine your eligibility for this insurance program by referencing the string of digits on your Medicaid identification card.

It is up to the Dollar-a-Day Car Insurance customer to prove Medicaid enrollment at the outset of the policy as well as every single renewal. If you are not enrolled in Medicaid when the policy term is active, the policy will not automatically cancel. Rather, you will only be provided with the policy’s limited benefits until you are once again enrolled in the program.

Obtaining the Insurance Policy

Dollar-a-Day Car Insurance can be obtained through several different insurance agencies. If you are unsure as to how to obtain this unique type of insurance, reach out to the Personal Automobile Insurance Plan (PAIP) customer service crew by dialing 1-800-652-2471.  You can also conduct a search to pinpoint a PAIP producer. It is interesting to note the National Continental Insurance Company is responsible for this unique auto insurance program.  The company underwrites Dollar-a-Day Car Insurance. However, you do not have to directly contact the National Continental Insurance Company to secure coverage through Dollar-a-Day Car Insurance.  It is possible to take out this coverage by way of the majority of licensed brokers and agents.

Dollar-a-Day Car Insurance Coverage

Dollar-a-Day Car Insurance provides limited coverage as it is a bare-bones policy that is comparably cheap. Dollar-a-Day Car Insurance covers the cost of emergency medical treatment in the immediate aftermath of an auto accident. This insurance coverage is also applicable to the treatment of significant spinal cord and brain injuries up to but not in excess of $250,000. There is also a $10,000 death benefit available through the policy.

Paying for Dollar-a-Day Car Insurance

Dollar-a-Day Car Insurance runs a mere $365 each year. If you choose to pay the entire cost of the insurance at once, you will pay $360. Alternatively, if you choose to pay in installments, you will shell out a total of $365. This is an incredibly cheap rate for auto insurance.

What the Policy Does not Cover

There are strict limitations to this auto insurance policy as it is designed for those lacking significant discretionary income.  Dollar-a-Day Car Insurance does not provide coverage for visits with physicians covered through Medicaid. Nor is there coverage for continual medical treatment.  If you cause any damage to other property or people or damage to your own vehicle, there is no coverage. Nor does this auto insurance does not provide compensation for damage to your own personal property stemming from an auto accident.  It does not matter if you, someone else, or an institution are responsible for the accident; there is no coverage for damage inflicted on the insured party’s personal property.  Furthermore, this insurance program does not provide reimbursement for any legal costs stemming from an auto accident.

Why Dollar-a-Day Car Insurance Makes Sense for Some Drivers

This highly unique form of auto insurance makes sense for certain New Jersey residents as it is quite affordable and allows drivers to carry medical liability.  Such medical liability is necessary to cover the cost of medical expenses that arise from an auto accident. The sad truth is more and more people cannot afford to pay the $100 to $200 monthly cost of auto insurance.   Dollar-a-Day Car Insurance is designed to provide coverage for the costs of medical care for such low-income individuals. This way, low-income drivers can still operate motor vehicles to get to work, drive their kids to school, and do errands around town.  Otherwise, these individuals would be forced to take the bus or another form of public transportation that is comparably inefficient.

Applying for the Policy

To apply for Dollar-a-Day coverage, you will need some documentation. To begin with, you will need an unexpired driver’s license on hand. Furthermore, every driver of the vehicle will also have to present his or her driver’s license. If your driver’s license is revoked or expired, you will not be eligible for this form of auto insurance.  The vehicle’s registration is also necessary. Finally, do not forget to bring your Medicaid identification card. This card makes it perfectly clear the individual(s) to be covered by this auto insurance are currently enrolled in Medicaid.