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Dollar-a-Day Car Insurance (Compare Quotes)

Enter your zip code below to view companies that have cheap auto insurance rates.

Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Jul 21, 2021

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Key Takeaways

  • Dollar-a-day insurance is a special car insurance plan offered by the state of New Jersey
  • Dollar-a-day insurance costs between $360 and $365 per year, depending on how you pay
  • You must be actively enrolled in Medicaid to qualify for dollar-a-day car insurance

Each state has car insurance requirements that you must meet to be able to drive legally. If you’re having difficulty paying for the level of insurance you need, there are ways to get help.

In New Jersey, residents may be able to buy dollar-a-day insurance to make sure they’re meeting requirements.

Keep reading to learn about dollar-a-day insurance and how you can qualify. Enter your ZIP code into our free quote comparison tool above to find affordable car insurance companies near you.

What is dollar-a-day insurance?

Dollar-a-day auto insurance, or the Special Auto Insurance Program (SAIP), is a type of liability insurance available to qualified New Jersey residents.

While dollar-a-day car insurance in New Jersey doesn’t meet the standard state requirements for insurance, drivers with SAIP coverage are given proof of insurance and are legally allowed to drive.

The coverage for dollar-a-day insurance is extremely limited. It will cover emergency medical treatment for the policyholder right after an accident and up to $250,000 of treatment for severe spinal or brain injuries. If the policyholder dies, it will also provide a $10,000 death benefit.

Unfortunately, SAIP does not provide coverage for other people’s injuries or damage to any vehicles.

The policyholder would be responsible for paying for non-emergency and ongoing medical treatment for themselves, medical treatments for others, and property damage if they are at fault.

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How much is dollar-a-day car insurance?

SAIP is called dollar-a-day insurance because the cost typically averages out to $1 per day. There are two different ways you can pay. If you pay in two installments, your total cost will be $365 per year. If you pay in one installment up front, your total cost will be $360 per year.

Dollar-a-day car insurance rates are much cheaper than other car insurance rates. They also do not vary based on traditional factors, such as driving history.

If you need to buy insurance for more than one vehicle, you cannot receive a discount for multiple vehicles. You would have to purchase a separate policy at the full price.

How can I buy dollar-a-day car insurance?

There are specific qualifications you must meet to buy dollar-a-day insurance. First, you must have a valid driver’s license and registration for every driver and vehicle you would like to insure.

Second, you must not currently have insurance. If you already have insurance, you will not qualify for the SAIP.

Last, you and all other insured drivers must be actively enrolled in Medicaid with hospitalization coverage. If your Medicaid is canceled in the middle of your SAIP policy, your policy will be valid until its expiration date.

To receive affordable dollar-a-day car insurance quotes, you will need to locate a Personal Automobile Insurance Plan office. You can do this by calling (800) 652-2471.

Because SAIP is provided by the state of New Jersey, you do not need to find a dollar-a-day car insurance company.

If you do not qualify for dollar-a-day insurance but need help finding affordable car insurance, enter your ZIP code into our free quote comparison tool below.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

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