Dollar a Day Insurance in NJ (SAIP)
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Dollar-a-day insurance, officially New Jersey’s Special Automobile Insurance Policy (SAIP), is a state-run program that provides limited, medical-only coverage to eligible Medicaid recipients for $365 per year, about a dollar a day. It’s the most limited of New Jersey’s three auto coverage tiers (Standard, Basic, and SAIP), covering emergency medical treatment and a death benefit, but not liability, collision, or comprehensive protection. Policies are issued through National Continental.¹ Here’s exactly who qualifies, what’s covered, and how it compares to New Jersey’s other coverage options.
If you’re a New Jersey driver with Medicaid and hospitalization benefits, dollar-a-day insurance can be a legal, low-cost way to stay insured, but it’s important to understand exactly what it does and doesn’t cover before you rely on it.
Key Takeaways
1. Dollar-a-day insurance, also known as the Special Automobile Insurance Policy (SAIP), costs $365 per year and is issued through National Continental.
2. SAIP is available only to New Jersey residents who are enrolled in Medicaid with hospitalization benefits.
3. Coverage is limited to emergency medical treatment, including up to $250,000 for certain brain and spinal cord injuries, plus a $10,000 death benefit. It does not include liability, collision, or comprehensive coverage.
4. SAIP is the most limited of New Jersey's three auto insurance coverage options: Standard, Basic, and SAIP.
5. If you cause an accident, you are personally responsible for the other driver's injuries and property damage because SAIP does not provide liability coverage.
6. Losing Medicaid eligibility during the policy period does not immediately cancel your SAIP coverage, but you will not be eligible to renew the policy.
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.
| SAIP (Dollar-a-Day) | Basic Policy | Standard Policy | |
|---|---|---|---|
| Who it's for | Medicaid recipients with hospitalization benefits | Drivers wanting lower-cost liability coverage | Most New Jersey drivers |
| Liability coverage | None | As low as $5,000 property damage | Full liability options available |
| PIP (medical) coverage | Emergency care + $250,000 for catastrophic injury | $15,000 minimum, up to $250,000 | $15,000 to $250,000, selectable |
| Est. annual cost | $365/yr (fixed) | $800 – $1,200/yr | $1,800 – $2,400/yr |
If your Medicaid coverage ends while your SAIP policy is still active, the policy won’t be canceled immediately, you’ll keep your coverage for the remainder of the term. However, you won’t be able to renew your SAIP policy once it expires unless you’re re-enrolled in Medicaid with hospitalization benefits. At that point, you’d need to look into New Jersey’s Basic or Standard policy options, or the state’s assigned-risk plan (below), to stay legally insured.
If you’re not eligible for SAIP, New Jersey’s Personal Automobile Insurance Plan (NJPAIP) is worth knowing about. NJPAIP is the state’s assigned-risk plan, designed for drivers who’ve had difficulty getting coverage through a standard insurer. It provides fuller liability coverage than SAIP, though typically at a higher cost than a standard policy from the voluntary market. It’s generally considered a last resort after shopping standard insurers.
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.
Dollar-a-day insurance, officially New Jersey’s Special Automobile Insurance Policy (SAIP), is a state-run program offering limited, medical-only auto coverage to eligible Medicaid recipients for $365 per year.
You must be a New Jersey resident with active Medicaid and hospitalization benefits, hold a valid NJ driver’s license, and have no other auto insurance policy. Only one vehicle per household can be covered.
SAIP covers emergency medical treatment after an accident, up to $250,000 for brain and spinal cord injuries, and a $10,000 death benefit. It does not include liability, collision, or comprehensive coverage.
SAIP costs $365 per year, payable in one lump sum or two installments.
SAIP policies are issued through National Continental. You can apply through insurance agencies that offer this coverage in New Jersey.
Yes. Because SAIP doesn’t include liability coverage, you’re personally responsible for injuries or property damage you cause to others in an accident.
Your existing policy won’t be canceled immediately, but you won’t be able to renew it once it expires unless you’re re-enrolled in Medicaid with hospitalization benefits.
If you’re not eligible for SAIP, New Jersey’s Personal Automobile Insurance Plan (NJPAIP), the state’s assigned-risk plan, is an alternative option for drivers who’ve had trouble getting coverage elsewhere.
No. SAIP is unique to New Jersey. Other states offer their own low-income or assigned-risk programs, but the specific dollar-a-day structure is a New Jersey program.
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.
