Dollar-a-Day Car Insurance: What to Know & How to Save (2024)
Dollar-a-Day insurance is available through the State of New Jersey through their Special Auto Insurance Policy (SAIP). You have to be on Federal Medicaid with Hospitalization to qualify for SAIP, and it only covers the cost of emergency medical expenses up to $250,000. It really is just a dollar a day, or $365 a year. If you pay in full all at once, you can pay just $360, which is less than a dollar a day.
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Jeffrey Manola
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Jeffrey Manola is an experienced life insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for life insurance with the most affordable term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide consumers with t...
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UPDATED: Nov 27, 2023
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Dollar-a-Day insurance is only offered in New Jersey through SAIP to low-income drivers
- Dollar-a-Day car insurance really does cost just $1 per day, or $365 a year
- To qualify, you also have to qualify for Federal Medicaid with Hospitalization
Dollar-a-Day insurance is offered by New Jersey’s Special Auto Insurance Policy (SAIP) through any of the best insurance companies. SAIP was created to help alleviate the number of motorists who do not have car insurance coverage because they can’t afford it. It’s an option that enables drivers to stay safer on the road by having their vehicles insured no matter their income.
Before you read on to learn what Dollar-a-Day insurance is, who qualifies, and what it covers, enter your ZIP code to compare cheap car insurance quotes in your area today. Comparison shopping is a great way for any driver to find affordable coverage.
What is Dollar-a-Day car insurance?
Dollar-a-Day car insurance is exactly what it sounds like: car insurance that only costs $1 a day. It is available through New Jersey’s Special Auto Insurance Policy (SAIP) as low cost car insurance for low-income families. It’s different from day to day insurance however, as it’s not pay as you go. You don’t pay for car insurance by the day, but rather all up front or in installments. It’s even cheaper if you pay for the entire year upfront, being only $360 instead of $365.
So there is a difference between one-day car insurance and Dollar-a-Day. Rather than a pay-as-you go, the Dollar-a-Day insurance option was crafted in order to keep people insured, since there are many drivers who aren’t able to afford insurance on their vehicles but rely heavily on them for transportation.
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Who is eligible for Dollar-a-Day insurance?
Dollar-a-Day insurance is only available to low-income motorists who qualify for Federal Medicaid with Hospitalization. If you aren’t currently on Federal Medicaid with Hospitalization, you won’t be able to apply for Dollar-a-Day insurance.
If you’re currently on Federal Medicaid with Hospitalization, further below we’ll cover what you should do in order to apply. Your insurer may be able to assist as long as they offer the program.
What is the SAIP?
SAIP is New Jersey’s answer to the state’s uninsured motorist problem.
According to the Insurance Information Institute, there are around 32 million drivers every year who have no insurance whatsoever. A large percentage of these uninsured motorists simply can’t afford car insurance.
With so many people driving uninsured, many insured motorists are shelling out for extra uninsured motorist coverage. Without it, they may end up facing lots of bills and a loss of claims if they’re in an accident with an uninsured motorist.
New Jersey created SAIP to reduce the cost barrier to insurance so fewer people will drive uninsured. People who can’t afford insurance through a provider can often afford Dollar-a-Day insurance through the state.
What does SAIP cover?
SAIP was designed specifically to provide emergency medical treatment after a car accident.
- SAIP will cover emergency medical costs (including brain and spinal cord injuries) up to $250,000.
- SAIP also provides a $10,000 death benefit to the family or designated beneficiary in the case of a fatality.
That may seem like a lot of coverage for just $365, but be aware that SAIP has some caveats in regards to fault in the accident. The specific circumstances of an accident may impact SAIP coverage.
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What does SAIP not cover?
The biggest thing that SAIP doesn’t cover is property damage like comprehensive coverage does. That means it doesn’t help if your car gets damaged in an accident, or if another driver’s car gets damaged in an accident.
SAIP also doesn’t cover the cost of outpatient treatments, although such treatments would likely already be covered by your Medicaid policy.
In any car-related accident, medical bills are usually the most costly expense, so if you can’t afford standard insurance from a provider, SAIP is designed to ensure that you can still afford medical coverage.
How do I get Dollar-a-Day insurance?
Because SAIP is meant to reduce cost barriers to insurance, the application process is 100% free. You’ll only have to provide your driver’s license (along with the licenses of anyone else who will be driving the car such as family members or friends), your car’s registration, and your Medicaid insurance card.
To apply for SAIP, you’ll need to speak to an insurance broker. Most major insurance agencies will be able to offer the plan, as it is state-funded.
You can also speak to a Dollar-a-Day agent via the Personal Insurance Plan provider hotline: 1-800-652-2471.
If you have any questions about the application process, need assistance, or want to learn more about Dollar-a-Day insurance, visit the Special Automobile Insurance Policy information page from the State of New Jersey’s Department of Banking & Insurance website.
If you don’t qualify for Dollar-a-Day insurance or don’t live in New Jersey, you can still save. The best way to save on your car insurance is by shopping around and comparing rates. Enter your ZIP code below to get free quotes. Staying safe while driving starts with being insured. Make sure your current insurer matches up with the rates that are currently on the market.
Case Studies: Unveiling the Impact of Dollar-a-Day Car Insurance and Effective Strategies for Saving
Case Study 1: John’s Affordable Coverage
John, a low-income driver in New Jersey, qualified for Dollar-a-Day insurance through the Special Auto Insurance Policy (SAIP). He paid just $360 for a full year of coverage, which provided him with peace of mind knowing that his medical expenses in case of an accident would be covered up to $250,000.
This affordable option allowed John to stay insured and drive safely without straining his limited budget.
Case Study 2: Sarah’s Medical Protection
Sarah, another New Jersey resident, was on Federal Medicaid with Hospitalization and decided to apply for Dollar-a-Day insurance. She spoke to an insurance broker and provided the necessary documents to complete the application process.
With SAIP coverage, Sarah felt secure knowing that emergency medical treatments resulting from a car accident would be covered. Although SAIP didn’t cover property damage or outpatient treatments, Sarah appreciated the financial protection it provided for her medical expenses.
Case Study 3: Mark’s Comparison Shopping
Mark, a driver outside of New Jersey, was interested in finding affordable car insurance options. Although Dollar-a-Day insurance was not available in his state, Mark learned the importance of comparison shopping.
He used an online quote tool to compare rates from different insurance companies, allowing him to find the best coverage at a competitive price. Mark understood that staying insured was crucial for his safety on the road, and finding a cost-effective policy was a priority.
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Frequently Asked Questions
What is Dollar-a-Day car insurance?
Dollar-a-Day car insurance is a type of auto insurance program offered in certain states that provides limited coverage at a low cost, typically costing just one dollar per day.
Which states offer Dollar-a-Day car insurance?
Currently, only the state of New Jersey offers the Dollar-a-Day car insurance program.
What are the eligibility requirements for Dollar-a-Day car insurance in New Jersey?
To be eligible for Dollar-a-Day car insurance in New Jersey, you must meet the following criteria:
- You must be enrolled in Medicaid with hospitalization.
- You must have a valid Medicaid identification card.
- You must not have any other form of automobile insurance coverage.
What does Dollar-a-Day car insurance cover?
Dollar-a-Day car insurance provides limited coverage for emergency medical services after a car accident. It includes coverage for emergency treatment, hospitalization, and some outpatient medical expenses.
What does Dollar-a-Day car insurance not cover?
Dollar-a-Day car insurance does not cover liability for damage to other people’s property or injuries they may sustain. It also does not cover damage to your own vehicle or other non-medical expenses resulting from an accident.
How can I save money on Dollar-a-Day car insurance?
Since Dollar-a-Day car insurance is already a low-cost option, there are limited opportunities for further savings. However, here are a few tips to consider:
- Maintain a clean driving record to potentially qualify for other, more comprehensive insurance options.
- Compare quotes from different insurance providers to ensure you are getting the best available rate.
- Take advantage of any available discounts, such as multi-policy discounts or good driver discounts.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced life insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for life insurance with the most affordable term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide consumers with t...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.