Dollar-a-Day Coverage Explained

You can buy dollar-a-day car insurance for $1/day or $365/year, but this dollar a day auto insurance plan is only for New Jersey drivers who are enrolled in Medicaid. Drivers only receive coverage through Medicaid for bodily injury liability insurance. This is specifically intended to cover the treatment of severe brain and spinal cord injuries and also includes a death benefit. Drivers in this program are still required to buy additional liability coverage in order to meet the minimum set by New Jersey.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jul 18, 2021

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What You Should Know

  • Dollar-A-Day car insurance only costs $1 a day
  • This insurance is only available in New Jersey
  • Eligible drivers must be enrolled in Medicaid

Even if you own one of the five cheapest cars to repair, it never hurts to find more ways to save money. If you’re looking for more ways to buffer your bank account,  you may have found ads for affordable dollar-a-day car insurance.

Dollar-a-day insurance is a medical option which is available only in very particular circumstances. If you aren’t eligible for dollar-a-day car insurance but want to save money, you have options. Enter your ZIP code in this free tool to get insurance quotes in your area today.

What is dollar-a-day car insurance?

Dollar-a-day insurance is a colloquial term for the Special Automobile Insurance Policy insurance program (SAIP), the one and only dollar-a-day car insurance company. If you were hoping to buy dollar-a-day insurance in Florida, you’re out of luck as this program is only available in New Jersey.

SAIP insurance allows NJ Medicaid drivers with low incomes to save money on their medical liability car insurance. Since there is no other company that offers dollar-a-day insurance, PA drivers can’t even access this great program.

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Who qualifies for dollar-a-day car insurance?

If you to take advantage of the dollar-a-day insurance, car insurance rates, and great coverage offered by the SAIP program, you must be enrolled in Medicaid and live in NJ.

If you qualify for Medicaid, but aren’t yet on Medicaid then you cannot buy dollar-a-day car insurance. In order to do so, you’ll need to sign up for the Medicaid program and then purchase Medicaid car insurance in NJ.

When applying for SAIP, you’ll need to have these items on hand:

  • The registration for the vehicle
  • The licenses for every driver will be operating the insured vehicle

If there are multiple individuals who live with you who would also like to drive your car, they will also have to be enrolled in Medicaid. This is the only way that they’ll also be covered by your SAIP policy.

If this is the case, then you will also need to bring a a Medicaid ID card that lists all the drivers who will be covered under the dollar-a-day policy as a Medicaid recipient.

How much does dollar-a-day car insurance cost?

You can buy dollar-a-day car insurance for, quite literally, a dollar a day. This unique program only costs $365 a year, and the price doesn’t change from one driver to another.

The SAIP program even lets qualified recipients receive a $5 discount if the total payment is paid in one lump sum.

What does dollar-a-day car insurance cover?

Understanding auto insurance and what it covers is important for any type of policy — no matter where you buy your insurance. The dollar-a-day policy covers the policy holder’s emergency treatment immediately following a car accident.

If need be, this policy will also cover a policy holder’s medical treatment for critical brain and spinal cord injuries for up to $250,000. There is also a $10,000 death benefit paid to out to the beneficiaries on your policy.

Since this program only provides medical coverage for a policy holder’s brain and spinal injuries that result from a car accident, it doesn’t meet NJ’s minimum coverage requirements.

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Dollar-A-Day Car Insurance: The Bottom Line

Only NJ drivers enrolled in Medicaid can purchase one dollar car insurance. This SAIP insurance is only $365 per year, making it incredible affordable, but it still doesn’t meet NJ’s minimum requirement for auto coverage.

If you are eligible for dollar-a-day car insurance but still want cheap insurance, you have plenty of options. Enter your ZIP code in our free tool to start comparing cheap car insurance quotes today.

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