Dollar-a-Day Insurance
Dollar-a-day car insurance offers very limited coverage to drivers enrolled in Medicaid with hospitalization. Although dollar-a-day insurance in NJ is very cheap, it only covers brain and spinal injuries and might not provide the car insurance coverage you need. New Jersey drivers must also have no other auto insurance coverage and have a valid driver’s license to qualify.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Jun 29, 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 car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car 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 car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.
UPDATED: Jun 29, 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 car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car 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 car insurance is only available in New Jersey
- In order to qualify, you must be enrolled in Medicaid with Hospitalization
- Dollar-a-day insurance does not meet the NJ minimum car insurance requirements and offers extremely limited coverage
Dollar-a-day car insurance is just like it sounds. It only costs about $365 a year but offers very limited coverage. In fact, it doesn’t meet the New Jersey requirements for most drivers, but it does offer affordable car insurance if you meet certain restrictions.
Because coverage is so limited, you should shop around before you buy dollar-a-day car insurance. You may be able to find more coverage at a rate that works for you, so enter your ZIP code now to compare car insurance quotes from multiple companies near you.
What is dollar-a-day car insurance?
Dollar-a-day car insurance refers to the Special Automobile Insurance Policy (SAIP) offered by the state of New Jersey.
SAIP offers drivers very minimum car insurance and only covers emergency treatment of brain and spinal cord injuries up to $250,000 immediately following a car accident. It also offers a $10,000 death benefit.
There is no way to get a dollar-a-day car insurance quote. The cost of SAIP is indeed one dollar a day, or $365 for a year if you make two payments. However, if you pay in advance, the cost is $360.
It’s easy to find dollar-a-day car insurance companies, although policies are only written by the National Continental Insurance Company.
Keep in mind, there are other cheap car insurance alternatives, so dollar-a-day insurance in NJ isn’t your only low-cost option. Although you might pay a little more, you will receive much more coverage.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Who qualifies for dollar-a-day insurance?
Not all New Jersey drivers will qualify for SAIP. In order to be eligible for dollar-a-day car insurance, you must:
- Be enrolled in Medicaid with hospitalization
- Not have auto insurance coverage elsewhere
- Have a driver’s license that is not suspended or revoked
If you no longer have Medicaid with hospitalization, your coverage will stay in effect until time for your renewal. Then you must find coverage somewhere else.
Also if you may not qualify if you need high-risk car insurance. You don’t have to have a clean driving record, but you will need a valid driver’s license.
To see if you qualify for SAIP, you can call the dollar-a-day insurance phone number at 1-800-652-2471.
In order to apply, you will need to provide your driver’s license, vehicle registration, and Medicaid identification card.
Fictional Case Studies: Exploring Dollar-a-Day Car Insurance
Case Study 1: John’s Limited Coverage
John, a Medicaid recipient in New Jersey, decided to opt for dollar-a-day car insurance due to its affordability. However, after a car accident, he realized that the coverage was insufficient. Despite sustaining property damage and non-brain or spinal injuries, John’s policy didn’t provide any coverage for these expenses.
This case highlights the limitations of dollar-a-day insurance and the importance of considering alternative options.
Case Study 2: Sarah’s Search for Comprehensive Coverage
Sarah, a New Jersey driver, was attracted to the low cost of dollar-a-day car insurance. However, she decided to shop around before making a decision. By comparing quotes from multiple companies, Sarah discovered that she could find more coverage at a reasonable rate.
Ultimately, she opted for a different insurance policy that provided comprehensive coverage, including property damage and a broader range of injuries.
Case Study 3: Mark’s Renewal Dilemma
Mark, a driver enrolled in Medicaid with hospitalization, had been using dollar-a-day car insurance for several years. However, as his renewal date approached, he received a notice stating that he would no longer qualify for the program due to changes in his Medicaid coverage. Mark now faced the challenge of finding alternative insurance coverage that would meet his needs and fit within his budget.
Case Study 4: Lisa’s Accident Expenses
Lisa, who had dollar-a-day car insurance in New Jersey, unfortunately got into a car accident. The accident resulted in significant property damage and injuries that extended beyond brain and spinal cord injuries.
Despite having some coverage, Lisa found herself responsible for a substantial portion of the expenses. This case highlights the potential financial risks associated with relying solely on dollar-a-day insurance in the event of a more severe accident.
Dollar a Day car insurance: The Bottom Line
Dollar a day car insurance rates are just like it sounds. If you qualify for SAIP, you can get affordable dollar-a-day car insurance in New Jersey for just $365 a year. However, only certain bodily injuries are covered, and property damage is not covered at all.
Since dollar-a-day insurance might not give you the coverage you’re looking for, enter your ZIP code now to compare car insurance rates from multiple companies near you for free.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Frequently Asked Questions
What is Dollar-a-Day Insurance?
Dollar-a-Day insurance is a program offered by the state of New Jersey that provides very limited auto insurance coverage to drivers enrolled in Medicaid with hospitalization. It only covers emergency treatment of brain and spinal cord injuries up to $250,000 immediately following a car accident and offers a $10,000 death benefit.
How much does Dollar-a-Day insurance cost?
Dollar-a-Day insurance costs $365 a year or $360 if paid in advance. However, the cost is not available through quotes as the policy is only written by the National Continental Insurance Company.
Who qualifies for Dollar-a-Day insurance?
To qualify for Dollar-a-Day insurance, you must be enrolled in Medicaid with hospitalization, have a valid driver’s license, and have no other auto insurance coverage.
Is Dollar-a-Day insurance enough coverage?
Dollar-a-Day insurance is very limited and only covers emergency treatment of brain and spinal cord injuries up to $250,000 immediately following a car accident and offers a $10,000 death benefit. While it may be a good option for those who can’t afford more comprehensive coverage, it’s not recommended for most drivers who need more coverage in case of an accident.
How can I apply for Dollar-a-Day insurance?
To apply for Dollar-a-Day insurance, you can call the dollar-a-day insurance phone number at 1-800-652-2471. In order to apply, you will need to provide your driver’s license, vehicle registration, and Medicaid identification card.
Is Dollar-a-Day Insurance available in states other than New Jersey?
No, Dollar-a-Day Insurance is currently only available in New Jersey. Other states may have similar low-cost insurance programs, but they are not called Dollar-a-Day Insurance.
What happens if I get into an accident and my Dollar-a-Day Insurance policy doesn’t cover all the damages?
If you are at fault for an accident and your Dollar-a-Day Insurance policy doesn’t cover all the damages, you will be responsible for paying the difference out of pocket. This is why it’s important to consider your insurance needs carefully and choose a policy with sufficient coverage.
Can I add additional coverage to my Dollar-a-Day Insurance policy?
No, you cannot add additional coverage to your Dollar-a-Day Insurance policy. If you need more coverage than what is offered by SAIP, you will need to purchase a separate policy from a different insurance provider.
Can I cancel my Dollar-a-Day Insurance policy at any time?
Yes, you can cancel your Dollar-a-Day Insurance policy at any time. However, you will not receive a refund for any unused portion of your policy.
Will my Dollar-a-Day Insurance policy cover me if I drive someone else’s car?
No, your Dollar-a-Day Insurance policy will only cover you while driving your own car. If you need coverage while driving someone else’s car, you will need to purchase a separate policy or be added as a driver to their existing policy.
Is Dollar-a-Day Insurance a good option for new drivers?
Dollar-a-Day Insurance may be a good option for new drivers who are enrolled in Medicaid with hospitalization and meet the other eligibility requirements. However, new drivers should also consider other insurance options to ensure they have adequate coverage in case of an accident.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.