Dollar-a-Day Car Insurance in 2025 [New Jersey SAIP]

New Jersey’s Special Automobile Insurance Policy (NJSAIP), also known as dollar-a-day car insurance, is a state program that helps low-income drivers on Medicaid access limited auto insurance coverage for about $1 a day.

Learn More: Best Car Insurance in New Jersey

It’s not a comprehensive policy, but it offers some medical coverage for accidents. Many people use it as a stopgap until they can afford a regular plan.

In this article, we’ll explain what it covers, who qualifies, and how to apply. Enter your ZIP code to compare free car insurance quotes and find affordable dollar-a-day insurance options in your area.

Dollar-a-Day Car Insurance in New Jersey

Dollar-a-day car insurance refers to New Jersey’s Special Automobile Insurance Policy (NJSAIP), also known as “dollar insurance.” This program offers cheap car insurance for low-income drivers who qualify for Medicaid in New Jersey.

New Jersey’s SAIP insurance policy costs $365 a year or $360 if you pay in full upfront.

Often called “NJ $1 a day car insurance,” SAIP is designed for New Jersey drivers at risk of driving without coverage due to financial struggles.

It doesn’t cover damage you cause to others or their property, leaving major gaps since it doesn’t meet New Jersey’s liability requirements. It’s best viewed as a last-resort safety net, not a complete insurance policy.

What Dollar-a-Day Car Insurance Covers

Dollar-a-day car insurance only covers emergency treatment for the policyholder immediately after an accident and additional medical treatment for critical brain and spinal cord injuries up to $250,000. There is also a $10,000 death benefit paid out to the policyholder’s family should they die in a collision.

Read More: How Car Insurance Works

To qualify for New Jersey dollar-a-day insurance, you must be enrolled in Medicaid with hospitalization coverage. Not all Medicaid plans qualify, so check with an insurance producer to verify your eligibility using your Medicaid ID number.

The key benefit of dollar-a-day car insurance is its affordability, making it a viable option for low-income drivers or those who need immediate coverage (check out cheap insurance companies that only look back 3 years). However, it usually doesn’t cover repairs for the vehicle or any additional medical costs for you, which can be a drawback.

If you’re looking for $1 a day car insurance near you, you’ll find that this unique coverage is unfortunately only available in New Jersey, and only if you meet the state’s specific dollar-a-day insurance NJ requirements.

However, plans similar to New Jersey’s Special Automobile Insurance Policy (SAIP) are available in states like California and Hawaii.

How much insurance do you need for your car? In New Jersey, drivers are required to carry specific minimum amounts of liability, personal injury protection (PIP), and uninsured motorist coverage.

New Jersey Minimum Car Insurance Requirements

You can choose either a basic or standard policy. The basic policy costs less but provides limited coverage and restricts your right to sue after an accident.

Still, it may vary depending on the state and local regulations and the insurance providers operating these. By entering your ZIP code, you can compare the best dollar-a-day providers are available directly in your area.

Who Qualifies for Dollar-a-Day Insurance Coverage

To meet New Jersey’s Medicaid car insurance requirements for dollar-a-day coverage, you must be enrolled in Medicaid with hospitalization benefits and be an uninsured driver in New Jersey. Other Medicaid plans don’t qualify for this coverage.

Your license and registration must also be valid, meaning not suspended or revoked.

If you lose Medicaid coverage, your $1-a-day car insurance will remain active until your next renewal (one year). After that, you’ll need to find a different policy.

For those who don’t qualify for dollar-a-day insurance, our New Jersey car insurance guide can help you find the best rates and top companies.

How to Apply for Dollar-a-Day Car Insurance

If you’re looking for dollar-a-day insurance near NJ, residents should follow these steps:

#Step 1: Confirm Your Eligibility

To qualify, you must receive hospitalization benefits through the Medicaid program. Applicants must have a valid New Jersey driver’s license that matches their identity and own a registered vehicle in New Jersey.

If you’re wondering, “How much is a ticket if you are driving without a license?” in New Jersey, driving without a license can result in fines of up to $500.

#Step 2: Prepare Documents & Contact the SAIP Carrier

You’ll need your New Jersey driver’s license, vehicle registration, and Medicaid ID card to prove eligibility. Contact National Continental Insurance Company, the sole carrier writing SAIP policies, at 1-800-652-2471 or visit the NJ Department of Banking and Insurance website to apply.

National Continental has managed all SAIP enrollments since January 1, 2011.

#Step 3: Complete Your Application

When applying, you must present your Medicaid ID and a valid driver’s license. However, you may wonder, “Can I get car insurance with no license?”

If you don’t have a license, some insurance companies may still offer options, but this depends on their specific rules.

You can choose to pay the $365 annual premium in one lump sum or in two equal payments. Once you’re approved, you’ll have basic medical coverage in place if you’re ever in an accident.