What is dollar-a-day insurance, and what does it cover?


Dollar-a-day car insurance is only available in New Jersey. It only offers coverage to drivers enrolled in Medicaid with hospitalization. While dollar-a-day auto insurance is very cheap, it has very limited coverage of brain and spinal injuries. New Jersey drivers must have a valid driver’s license and can’t enroll in any other car insurance. Therefore, dollar-a-day insurance may not provide drivers with enough coverage to satisfy their needs.

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UPDATED: 2021-10-15T20:30:17.295Z
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What You Should Know

  • Dollar-a-day insurance is only available in New Jersey
  • Rates for dollar-a-day insurance is just $365 for the entire year, but coverage is minimal
  • Dollar-a-day insurance is written by the National Continental Insurance Company

Most drivers are concerned with how to get cheap car insurance. If you need car insurance in New Jersey and meet specific qualifications, you might consider dollar-a-day insurance.

Although dollar-a-day auto insurance sounds like a great deal, coverage is extremely limited and might not meet your needs.

Before you buy dollar-a-day car insurance, shop around. You can find the coverage you need at a low rate if you compare various companies.

Keep reading to learn more about dollar-a-day car insurance. If you’re looking for New Jersey coverage, enter your ZIP code now to compare free car insurance quotes from multiple companies near you.

Table of Contents

What is dollar-a-day insurance?

Dollar-a-day insurance is the Special Automobile Insurance Policy (SAIP) that is only offered in New Jersey drivers that meet certain requirements.

SAIP only offers very limited coverage for brain and spinal injuries resulting from a car accident. This medical coverage is only provided up to $250,000. A $10,000 death benefit is also offered to the family.

Although you can get affordable dollar-a-day car insurance, coverage is minimal. In addition, it doesn’t pay for most damages or injuries.

Dollar-a-day car insurance rates are not a surprise. If you pay for SAIP upfront, the cost is $360 a year. However, if you make payments, the price is $365.

While it’s easy to find dollar-a-day car insurance companies, coverage is only offered through the New Jersey SAIP program and written by the National Continental Insurance Company.

If you have trouble finding the coverage or have questions, call the customer service number at 1-800-652-2471.

Who qualifies for dollar-a-day insurance?

Dollar-a-day insurance is only available to low-income New Jersey drivers who meet specific requirements.

Those requirements are:

  • Enrollment in Medicaid with hospitalization
  • Possessing a valid New Jersey driver’s license
  • No other car insurance coverage

If your Medicaid with hospitalization coverage ends, you will be able to keep your dollar-a-day coverage until time for renewal. Then you will need to find auto insurance coverage elsewhere.

You’re driving record can affect your ability to qualify for the SAIP program. While you don’t need to have a clean driving record, you will need to have a driver’s license that isn’t suspended or revoked.

You will need to provide your driver's license, vehicle registration, and Medicaid identity card to apply for dollar-a-day coverage.

What are the New Jersey car insurance requirements?

Although dollar-a-day insurance is cheap, it doesn’t meet the standard New Jersey requirements for car insurance. The purpose is to insure those drivers who would not have any car insurance coverage.

For most New Jersey drivers, these are the minimum requirements for car insurance:

  • $15,000 per person and $30,000 per incident for bodily injury liability
  • $5,000 per incident for property damage
  • $15,000 per person and $30,000 per incident for uninsured/underinsured motorist coverage

Drivers who don’t have at least the minimum coverage can face fines, driver’s license suspension, and even jail time.

However, dollar-a-day insurance allows drivers who can’t afford these minimums to have a very limited amount of coverage and drive legally.

Even with this coverage, you can still be responsible for damages from an accident you cause. You can also be held accountable for any bodily injuries. However, these costs can be much more expensive than a traditional auto insurance policy.

This can put an unintended strain on drivers with dollar-a-day insurance. In addition, those on the SAIP program are usually lower-income, to begin with, and would be unable to pay out of pocket for damages and injuries.

For comparison, take a look at the average annual rates for New Jersey auto insurance based on the type of coverage you want.

Company Average Annual Low Coverage Rates Average Annual Medium Coverage Rates Average Annual High Coverage Rates
Allstate $5,270.22 $5,797.50 $6,073.01
Farmers $6,861.13 $7,577.22 $8,412.64
GEICO $2,462.30 $2,808.31 $2,994.20
Liberty Mutual $6,053.83 $6,971.85 $7,274.15
Progressive $3,603.50 $4,034.39 $4,280.26
State Farm $6,994.15 $7,625.56 $7,961.75
Travelers $3,892.44 $4,254.55 $4,616.48

Low coverage averages about $400 a month, but rates will depend on many different factors like your driving record and ZIP code.

There are many alternatives to dollar-a-day insurance, so make sure you shop around before you make a decision. Don’t just consider the price. Also, consider the coverage you need to have in place in the event of an accident.

Consider comparing quotes from multiple companies to find the best car insurance in New Jersey for you. While you might pay a little more, you get much more coverage.

What are other ways to save on car insurance?

While paying less for coverage is the most obvious way to save money, you can also save money on your car insurance in other ways.

The easiest way to lower your rates is to add discounts to your policy. Most auto insurance companies offer a variety of discounts that can reduce your rates drastically.

Common car insurance discounts include multi-car, multi-policy, safe driver, good student, and even discounts for the safety features on your car.

Another way to save is to raise your deductible. Paying more out of pocket if an accident occurs can lower your monthly rates.

Also, consider dropping some of the extras that may be added to your policy. Although things like roadside assistance and rental car coverage are nice, the cost can add up.

Dollar-A-Day Insurance: The Bottom Line

While you can’t get dollar-a-day car insurance quotes, you don’t need them. Rates are just $365 for the year, but coverage is extremely limited.

While it’s tempting to get the cheapest coverage out there, damages and most injuries won’t be covered by dollar-a-day insurance.

Remember that dollar-a-day insurance might not offer you the coverage you need, even if the rates are low. Enter your ZIP code now to compare car insurance quotes from multiple companies in New Jersey for free.

References:

  1. https://www.state.nj.us/dobi/division_consumers/insurance/saip.htm

Save Money by Comparing Insurance Quotes

Compare Free Insurance Quotes Instantly

ZIP Code must be filled out!

Secured with SHA-256 Encryption

Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
ZIP Code must be filled out!
 Secured with SHA-256 Encryption