How Does Dollar-A-Day Car Insurance in New Jersey Work?
Thursday, October 28, 2021
New Jersey’s Special Automobile Insurance Policy (SAIP) offers dollar-a-day car insurance. For just $1 per day, drivers can legally drive on public roads in New Jersey.
The SAIP’s dollar-a-day car insurance program is misunderstood.
Yes, drivers can buy real car insurance for $365 per year that allows them to legally drive. However, that car insurance does not technically meet New Jersey’s minimum auto insurance requirements, and drivers have no liability insurance whatsoever.
Plus, not all drivers qualify for dollar-a-day car insurance.
Keep reading to discover everything you need to know about New Jersey’s dollar-a-day car insurance, the SAIP, and how it works.
The SAIP Offers Legal Car Insurance for $365 Per Year
The New Jersey state government runs a residual market insurance plan called the Special Automobile Insurance Policy, or SAIP.
If you are on Medicaid and live in New Jersey, then you may qualify for the SAIP’s dollar-a-day car insurance.
SAIP insurance polices are priced at around $365 per year, which is why they’re known as dollar-a-day car insurance policies.
What Does Dollar a Day Car Insurance Cover?
SAIP policies meet proof of insurance requirements in New Jersey. When you have SAIP car insurance, you are considered to be driving legally.
However, SAIP insurance only covers emergency treatments and severe driver injuries. It does not come with liability coverage, which means it does not cover damage you cause to other people.
What is Covered
New Jersey’s SAIP covers:
- Emergency treatment
- Serious driver injuries (injuries to your spine and brain)
What is Not Covered
New Jersey SAIP does not cover certain things ordinary car insurance would cover, including:
- Liability over damage to other people and property
- Damage to your own vehicle from a collision
- Damage to your own vehicle outside of a collision (say, from theft, vandalism, fire damage, or storm damage)
- Injuries to your passengers
In other words, New Jersey’s dollar-a-day car insurance is the most basic type of car insurance possible. It’s designed for drivers who cannot obtain car insurance from the open market. These drivers want to continue to drive legally, so they buy car insurance through the SAIP.
How New Jersey’s Dollar-a-Day Coverage Works
New Jersey’s dollar-a-day car insurance coverage covers emergency situations and severe injuries. It does not cover damage you inflict to other people or their property.
Here’s how coverage works:
- Your dollar-a-day car insurance covers emergency treatment, including emergency room (ER) care for the policyholder as a result of a car accident
- The policy covers critical brain and spinal cord injuries up to a limit of $250,000
- The dollar-a-day car insurance provides a $10,000 death benefit to your family (the approximate cost of a funeral) if you die in a collision
How Much Does Dollar-a-Day Car Insurance Cost?
New Jersey’s SAIP dollar-a-day car insurance costs around $365 per year. You can pay in a lump sum or in two instalments, which will slightly impact the price:
- $365 per year (paid in two instalments of $180 each)
- $360 per year (paid in a lump sum)
The average driver in New Jersey pays around $1,550 per year for full coverage car insurance, while the average liability plan costs around $1,000 per year. When you buy car insurance through New Jersey’s SAIP program, you’re getting a significant discount on the cost of car insurance. However, you’re also getting the most basic possible car insurance.
How to Buy Dollar-a-Day Car Insurance in New Jersey
You can buy dollar-a-day car insurance through most insurance agents in New Jersey.
Independent agents recommend different car insurance based on your needs. They can set you up with dollar-a-day car insurance through New Jersey’s SAIP.
All SAIP car insurance policies are issued by the National Continental Insurance Company.
If you are on Medicaid and have a good driving history, then you may qualify for New Jersey’s dollar-a-day car insurance, also known as the Special Automobile Insurance Policy (SAIP).
Contact an insurance agent in your area to obtain dollar-a-day car insurance in New Jersey.