A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

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Reviewed by Melanie Musson
Published Insurance Expert Melanie Musson

UPDATED: Jun 2, 2021

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Just What's Essential

  • 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.

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.