Dollar-a-Day Auto Insurance Coverage
Dollar-a-Day insurance really does cost just a dollar a day, or $365 a year. If you pay in full at once, you’ll actually pay just $360, which is less than a dollar a day. Dollar-a-Day insurance is available through New Jersey’s Special Auto Insurance Policy (SAIP). You have to be on Federal Medicaid with Hospitalization to qualify. Dollar-a-Day insurance only covers emergency medical expenses up to $250,000.
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Insurance Lawyer
Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...
Jeffrey Johnson
Insurance Lawyer
Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...
Jeffrey Johnson
Updated October 2023
- Dollar-a-Day insurance is available to low-income drivers through New Jersey’s SAIP
- It really does cost just $1 a day, or $365 a year
- If you pay up-front, you’ll actually only pay $360
- You have to be on Federal Medicaid with Hospitalization to qualify for SAIP
- Dollar-a-Day insurance only covers emergency medical expenses up to $250,000
Dollar-a-Day auto insurance is available only in the state of New Jersey, through their Special Auto Insurance Policy (SAIP). SAIP was created to help lower the cost barrier to insurance and give low-income drivers a viable path to auto insurance.
Read on to learn more about Dollar-a-Day insurance, who qualifies for it, and what it covers. But first, enter your ZIP code to compare affordable auto insurance quotes in your area.
What is Dollar-a-Day auto insurance?
Dollar-a-Day insurance is exactly what it says on the tin: insurance that only costs a single dollar a day. It is offered only by New Jersey’s Special Auto Insurance Policy, also known as SAIP.
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Who is eligible for Dollar-a-Day insurance?
SAIP only offers Dollar-a-Day insurance to low-income drivers who also qualify for Federal Medicaid with Hospitalization. If you aren’t on Medicaid with Hospitalization, you won’t qualify for Dollar-a-Day insurance.
What is SAIP?
Dollar-a-Day insurance is offered through New Jersey’s Special Auto Insurance Policy, or SAIP. SAIP is New Jersey’s solution to the high number of uninsured motorists in the country.
The Insurance Information Institute reports that approximately 32 million motorists drive without insurance every year. Many are only uninsured because they can’t afford insurance through major providers.
If an insured driver is in an accident with an uninsured driver, the insured driver will be responsible for the cost of any damages to their car and any medical bills. Many providers offer uninsured motorist coverage, which helps alleviate these costs, but that makes your insurance rate go up.
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help reduce the number of uninsured drivers on the road, New Jersey decided to create a cheap insurance policy that low-income drivers would be able to afford. SAIP was born, and offers auto insurance for just $1 a day.
What does SAIP cover?
SAIP isn’t like insurance from other major providers, where you can pick and choose the different types of coverage you want. SAIP was designed specifically to cover emergency medical treatment in case of an accident.
- SAIP covers emergency medical costs up to $250,000
- That includes brain and spinal cord injuries
- SAIP provides a $10,000 death benefit in the event of a fatality
- Coverage may depend on fault in the accident
$250,000 is a lot of coverage for just $1 a day, but it’s important to remember that there are a lot of other expenses besides medical when it comes to auto accidents.
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What does SAIP not cover?
Unlike full coverage auto insurance, SAIP doesn’t cover property damage. So, if your car is damaged in an accident, SAIP won’t offer any monetary assistance in getting it fixed (or even replaced). SAIP also doesn’t cover any damage to another person’s car if you are at fault for the accident.
While SAIP does cover emergency medical expenses, it doesn’t cover outpatient treatments. It’s worth noting, though, that these kinds of treatments are likely already covered by your Medicaid.
How do I get Dollar-a-Day insurance?
SAIP is designed to help eliminate the cost barrier to insurance that most uninsured, low-income motorists face. For this reason, the application process is 100% free.
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apply, you’ll need to provide:
- Your driver’s license
- Your car’s registration
- Your Medicaid insurance card.
- The driver’s license of anyone else driving the car
If you’d like to start the application process for SAIP, you’ll need to speak to an insurance broker. Most major insurance providers will offer the state-funded plan.
You can also talk to a Dollar-a-Day agent through the Personal Insurance Plan provider hotline: 1-800-652-2471.
Where can I get more information?
If you have any questions about SAIP, visit the Special Automobile Insurance Policy information page on the state of New Jersey’s Department of Banking & Insurance website.
You’ll find information on how the application process works, resources for application assistance, and answers to coverage questions.
Whether or not you qualify for Dollar-a-Day insurance, you can still find cheap auto insurance. The best way to save is by shopping around, so enter your ZIP code below for free quotes so you can start comparing today.
Case Studies: Exploring Dollar-a-Day Auto Insurance
Case Study 1: John’s Affordable Coverage
John, a low-income driver in New Jersey, was struggling to find affordable auto insurance. However, he qualified for Dollar-a-Day insurance through New Jersey’s Special Auto Insurance Policy (SAIP). By paying just a dollar a day, John was able to secure coverage for emergency medical expenses up to $250,000. This policy provided him with the peace of mind he needed while staying within his budget.
Case Study 2: Maria’s Limited Coverage
Maria, another New Jersey resident, also opted for Dollar-a-Day insurance. She met the eligibility criteria by being on Federal Medicaid with Hospitalization. Although the coverage was limited to emergency medical expenses, Maria felt it was a valuable option considering the low cost.
While the policy didn’t cover property damage or outpatient treatments, Maria was content with the protection it offered for unforeseen emergencies.
Case Study 3: Anthony’s Application Process
Anthony, a low-income driver looking for affordable insurance, decided to apply for Dollar-a-Day insurance. He contacted an insurance broker who guided him through the application process. Anthony discovered that the application was free and required him to provide necessary information such as identification documents, Medicaid details, and contact information.
With the broker’s assistance, he successfully completed the application and obtained Dollar-a-Day coverage.
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