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New Jersey's Special Auto Insurance Policy (SAIP)  

The state of New Jersey offers a unique insurance program called the Special Automobile Insurance Policy, or SAIP. Better known as Dollar-A-Day car insurance, this program offers limited auto insurance for recipients of Medicaid, aiming to make car insurance more affordable for people more likely to go uninsured because of financial limitations.

What Dollar-A-Day insurance covers

This program offers limited insurance, covering emergency medical treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit.

This program does not offer liability or comprehensive coverage, meaning you are not covered if you incur damage to someone’s person or property or to your own vehicle. Without liability coverage, SAIP participants do not meet the state minimum regulations for auto insurance coverage and can be held legally liable for cases of damage to others or their property.

New Jersey's Dollar-A-Day program only allows one car per policy, even if there is more than one person in your household who has Federal Medicaid with hospitalization. All eligible drivers in the same household can be covered on the same policy as long as there is only one vehicle.

Unlimited Medical Coverage


Who is eligible for a New Jersey SAIP policy?

SAIP is made for drivers who are eligible for federal Medicaid with hospitalization. Not all Medicaid plans qualify for this program; an insurance agent will be able to confirm whether or not you are eligible for NJSAIP by the number on your Medicaid ID. You must be uninsured in order to apply for this policy.

How to get Dollar-A-Day insurance

Most insurance agencies in New Jersey can issue a Special Auto Insurance Policy to eligible applicants. You can also contact the Personal Auto Insurance Plan customer service line by calling 1-800-652-2471. Officially, SAIP is issued by the National Continental Insurance Company. The plan costs $365 for a one-year policy period if you pay in two installments, and $360 per year if you pay up front.

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New Jersey Dollar-A-Day insurance FAQs

Will NJSAIP insurance be cancelled if Medicaid benefits are discontinued? Chevron down icon
Applicants for the SAIP policy are required to prove enrollment in Medicaid at the time of application and each renewal. If you are de-enrolled from Medicaid during the policy period, the policy will not end immediately: you will retain coverage until the policy expiration date. Once your policy period expires, however, you will need to apply for a different car insurance policy with another provider.
Can I get a Dollar-A-Day policy if I have a bad driving record? Chevron down icon
Policies are issued to drivers with a variety of driving records, but you cannot get a policy if your driver's license or registration is revoked or suspended.
What documents are needed to apply for NJSAIP insurance? Chevron down icon
To apply for SAIP, you must bring the driver’s licenses of all drivers that will be listed on the policy, your vehicle’s registration, and each driver’s Medicaid ID card.

Affordable auto insurance options in New Jersey

If you don't qualify for SAIP or are no longer eligible to receive the benefits of this program, your best bet for finding affordable car insurance is by shopping around. The Zebra has compiled a list of affordable car insurance providers in New Jersey. Enter your ZIP code below to compare quotes from companies offering coverage in New Jersey.

Auto insurance data methodology

The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.

In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.

What's the cheapest car insurance company in New Jersey?

Rank Company Name Annual Premium
1 Travelers $1,168
2 Cal Casualty $1,466
3 NJM $1,558
4 State Farm $1,759
5 Penn National $1,776
6 Metlife $1,971
7 Progressive $2,003
8 Mercury $2,332
9 Allstate $2,656
10 Hanover $5,194

Compare car insurance quotes and find the right policy for you.

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Is SAIP insurance worth it?

Because this program does not meet state minimum requirements and will not cover your or the other party's vehicle in the event of a collision, New Jersey's Dollar-A-Day program should be considered a last resort solution.

While its target policyholders already face financial limitations, choosing a program that leaves you financially vulnerable and unprotected is a risk. If involved in an accident, you will be held financially responsible for damages to the other party's person or property, which may be more difficult for recipients of Medicaid programs to be able to afford. This policy is best for low-risk drivers who drive infrequently and have exhausted all other coverage options.


How do I help my father lower his rate if I'm on his policy and have accidents?

One thing to keep in mind is that accidents occurring more than 5 years in the past should have no impact on your current insurance rates, so you are definitely outside of that window. Concerning your speeding ticket, if you have not yet been to court then it most likely has not been added to your driving record, meaning you shouldn't be penalized for the violation if you purchase insurance coverage before your court date.
Sep 22, 2017 Tenafly, NJ

Does homeowners insurance cover re-stain after claim?

Your homeowner's insurance will typically pay to repair the damage to the property. They don't pay to make sure the stain matches.
Jan 5, 2019 Freehold, NJ

Why does a not-at-fault accident affect my insurance?

Most people understand that if they were at-fault in a car crash then they will likely see an increase in their rates. Unfortunately, not-at-fault accidents can also affect the rate that you pay for car insurance.
Jun 19, 2018 Lewisville, TX

Why do I have to keep insurance on my old car if I'm not using it?

It really has more to do with the fact that you still have the vehicle registered in your name. New Jersey monitors whether or not vehicles registered in the state are also insured.
Apr 26, 2017 Atlantic City, NJ

Renata Balasco photo
Renata BalascoContent Strategist

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist. Her expertise in property and casualty insurance informs her work in creating expert home and auto insurance guides to educate shoppers. 

Renata previously worked as a content specialist for Lifespan, the largest hospital system in the state of Rhode Island. She holds a bachelor’s degree in French Language and Communications from The University of Rhode Island.

Renata's work has been cited by Car and Driver, The Balance and Fox Business

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.