Living on a tight budget makes car insurance feel out of reach for many New Jersey residents. Fortunately, the state offers a day car insurance through the Special Automobile Insurance Policy (SAIP) program. This coverage costs $365 yearly and provides basic medical protection for qualifying drivers. If you’re wondering how to qualify and apply for this low-cost coverage, here’s everything you need to know to get started.
Who Qualifies for SAIP Coverage
Dollar-a-day insurance NJ requirements are specific and limited to certain residents:
- Current enrollment in Federal Medicaid with hospitalization benefits
- Valid New Jersey driver's license
- Vehicle registration in your name
- No other active auto insurance policy
- Only one vehicle per household qualifies
Your Medicaid card must show hospitalization coverage specifically. Not all Medicaid programs include this benefit. An insurance agent can verify eligibility using your Medicaid ID number.
Documents Needed for Application
Before applying for 1 dollar a day car insurance, gather these items:
- Valid New Jersey driver's license
- Current vehicle registration
- Medicaid identification card
- Proof of Medicaid hospitalization benefits
Having everything ready speeds up the process considerably. Most applications require only one appointment once the documents are prepared.
Where to Apply?
You cannot apply directly through the state. Instead, work with licensed insurance agencies authorized to sell SAIP policies. National Continental Insurance Company underwrites all dollar-a-day policies in New Jersey.
Application Options:
- Licensed insurance brokers throughout New Jersey
- Personal Auto Insurance Plan (PAIP) producers
- PAIP hotline at 1-800-652-2471
The New Jersey Department of Banking and Insurance website lists certified PAIP producers by county. Search their directory to find authorized agents near you.
Application Steps:
The process moves quickly once you contact an authorized agent:
- Verification: Your agent confirms Medicaid eligibility and checks that hospitalization benefits are active
- Documentation: They review your driver's license and vehicle registration for accuracy
- Application: The agent completes the SAIP form with your information
- Payment: Choose between paying $360 upfront annually or $182.50 twice yearly
- Approval: Most applications process within a few days
You receive temporary proof of insurance while waiting for official policy documents to arrive by mail..
What SAIP Actually Covers?
Understanding coverage limits prevents surprises after accidents. Dollar a day car insurance includes:
- Emergency medical treatment immediately following accidents
- Brain and spinal cord injury treatment up to $250,000
- $10,000 death benefit
- Damage to your own vehicle
- Injuries or property damage you cause to others
- Follow-up medical care beyond emergency treatment
- Passenger injuries
This policy provides medical coverage only for you as the driver. You remain personally liable for damage you cause to other people or their property.
Important Limitations
SAIP keeps you legal but leaves major gaps in protection. If you cause an accident, victims can sue you for damages since your policy provides no liability coverage. Courts can garnish wages or seize assets to satisfy judgments.
Vehicle repairs come entirely out of pocket, whether you cause the accident or someone hits you. Most injuries beyond emergency care are not covered either.
New Jersey's basic standard policy includes $5,000 property damage liability and $15,000 personal injury protection. While costing more, standard policies protect you from lawsuits and cover damage you cause to others.
Key Takeaways for SAIP Coverage in New Jersey
Dollar-a-day car insurance offers New Jersey residents an affordable way to stay protected on the road. Understanding the Dollar a day insurance NJ requirements helps you determine eligibility and prepare documents in advance. Through the Special Automobile Insurance Policy (SAIP), you can secure essential medical coverage quickly while staying legally compliant.