Dollar a Day Insurance in NJ (SAIP)
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Dollar a day car insurance, also called New Jersey’s Special Automobile Insurance Policy (SAIP), is a state-run program designed for low-income drivers who can’t afford traditional car insurance policies. The coverage costs $365 per year, which is significantly less expensive than even the most basic traditional car insurance policy.
Car insurance costs are constantly increasing, so affording insurance on a limited and fixed budget can be difficult. If you’re in New Jersey and have a low income, then dollar a day car insurance may be able to help you afford car insurance coverage.
To qualify for the coverage, New Jersey residents must have a Medicaid policy with hospitalization benefits. Residents can’t have another auto insurance policy, and they must have a valid driver’s license. Only one vehicle in each household can qualify for the 1 dollar a day car insurance program, regardless of how many individuals qualify.
Dollar a day insurance in NJ provides limited coverage, so it doesn’t work the way a traditional car insurance policy does. Instead, $1 a day car insurance helps cover the costs of emergency medical treatment that’s required right after an accident; coverage is limited to $250,000. The coverage also offers a $10,000 death benefit.
Keep in mind that traditional car insurance policies offer liability and comprehensive coverage, which help protect you if you damage someone’s property or your own vehicle. New Jersey requires drivers to carry a minimum amount of liability and collision coverage, so if you only have dollar a day insurance, you can be liable for the cost of damage that you cause others and their property.
You can apply for dollar a day car insurance through many insurance companies that offer coverage in New Jersey. You’ll have the option to pay the policy premium in one lump sum or in two installments.
When you apply for coverage, you will need to provide the driver’s licenses of all of the drivers who will be included on the policy. You will also need your vehicle’s registration, as well as the Medicaid ID card for each driver on the policy.
A dollar a day insurance policy can sound appealing because of its low cost, but remember that this coverage only helps pay for medical expenses and a death benefit, and it has a relatively low coverage limit. You may still be responsible for damages caused in an accident, so you could face tens or even hundreds of thousands of dollars in expenses.
A traditional car insurance policy offers more coverage and more protection, and depending on the deductible and coverage limits you choose, the policies can be affordably priced. You can get free car insurance quotes online today to start comparing prices and exploring your options.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
