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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.

Recent Questions:

Should I file a claim or pay out of pocket for damage to my car?

Based on research through our State of Car Insurance Report, an at fault accident in New Jersey has an average impact of $1,228 additionally per year. Accidents impact rates for 3 years from the date of the incident, so it may make more sense to pay for the damage out of pocket rather than pay higher rates for the next 3 years.
Dec 27, 2016 Bedford, NJ

I didn't tell my insurance company I was ridesharing and got into an accident

If you do not have a rideshare endorsement on your policy, they might deny the claim. Insurance companies like to know all the risks they could potentially be exposed to and ridesharing presents a big one.
Mar 25, 2018 Jersey City, New Jersey

Can my brother use his insurance for damage he caused to my vehicle?

Unfortunately, car insurance follows the vehicle, not the driver. In this case, he cannot use his own insurance to cover the damage he caused to your vehicle.
Jan 6, 2019 Willingboro, NJ

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
Renata BalascoAssociate Content Strategist

Renata is a licensed insurance professional and content strategist responsible for creating home and auto insurance guides for The Zebra.

Renata's background in technical writing and her experience working in the insurance industry informs her work. She holds a bachelor’s degree in communications.

Renata's work has been cited by Car and Driver

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.