Auto Insurance For Medicaid [Updated + Discounts]

Auto insurance for Medicaid is a provision that's offered under standard Medicaid, but you may qualify for discounts or low-income state programs like The Special Auto Insurance Policy (SAIP) in New Jersey.

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Rachel Bodine graduated from college with a BA in English. She works as an associate editor and writer for 4autoinsurancequote.com for over a year and enjoys creating content that offers expert advice on car insurance topics.

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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...

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Reviewed byLeslie Kasperowicz
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UPDATED: May 7, 2020

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Medicaid is the government-run healthcare program for low-income families in the United States. It is funded by both the federal and state governments and managed by each individual state. Both US and non-US citizens can be served by Medicaid.

Groups eligible include low-income adults and their children and people with certain disabilities. Medicaid is the largest source of health insurance for low-income families in the United States. is auto insurance for Medicaid a provision within that program? Most of the time, the answer is no, but you might be in luck. We’ll be going over your options.

If you are looking for ways to save on auto insurance, get a free quote using our tool above.

Does Medicaid cover auto accidents?

Medicaid requires certain mandatory benefits to be provided, with optional benefits by state. But does having Medicaid qualify you for any type of auto insurance benefits? Depending on your state, you might be in luck.

The Special Auto Insurance Policy (SAIP) for New Jersey auto insurance allows drivers who are eligible for Medicaid and welfare to obtain auto insurance cheaply medical-only liability coverage. What are the requirements for this low-income dollar-a-day auto insurance in NJ under SAIP? If you’re on Medicaid, you stand a good chance.

It’s best to contact your local government agency to see what the requirements are. Whether you’re looking for dollar-a-day insurance in East Orange, NJ or Newark, NJ, the SAIP policy may be able to help.

This video talks about the SAIP program.

This policy ONLY covers medical expenses resulting from auto accidents. It is not to be confused with liability coverage, collision coverage, comprehensive coverage, or any other auto insurance coverage types.

In most states, however, having Medicaid alone will not cover injuries sustained in automobile accidents. You will need an additional insurance policy to cover this.

It is most likely that your Medicaid policy WILL NOT cover auto accident injuries.

Also, because Medicaid regulations differ in each state (and are always changing), it’s hard to say if they will pay anything until claims against the auto insurance company have been exhausted.

Please visit the government Medicaid website to see if your state offers any type of auto insurance help for Medicaid policyholders, as they’re the best to find out what sort of insurance is covered under Medicaid. You may also call the Medicaid headquarters at toll-free 877-267-2323.

Each state has its own requirements for automotive liability requirements. That’s required just about everywhere. You don’t normally have to have full coverage unless the lender you financed it from requires it.

You may need medical payments coverage on your auto insurance, but that is down to your state. The Insurance Information Institute (III) lists requirements for your state.

Minimum Liability Requirements by State
StateCar Insurance RequirementsMinimum Liability Limits
ALBI & PD Liab25/50/25
AKBI & PD Liab50/100/25
AZBI & PD Liab15/30/10
ARBI & PD Liab, PIP25/50/25
CABI & PD Liab15/30/5
COBI & PD Liab25/50/15
CTBI & PD Liab, UM, UIM25/50/20
DEBI & PD Liab, PIP25/50/10
DCBI & PD Liab, UM25/50/10
FLPD Liab, PIP10/20/10
GABI & PD Liab25/50/25
HIBI & PD Liab, PIP20/40/10
IDBI & PD Liab25/50/15
ILBI & PD Liab, UM, UIM25/50/20
INBI & PD Liab25/50/25
IABI & PD Liab20/40/15
KSBI & PD Liab, PIP25/50/25
KYBI & PD Liab, PIP, UM, UIM25/50/25
LABI & PD Liab15/30/25
MEBI & PD Liab, UM, UIM, Medpay50/100/25
MDBI & PD Liab, PIP, UM, UIM30/60/15
MABI & PD Liab, PIP20/40/5
MIBI & PD Liab, PIP20/40/10
MNBI & PD Liab, PIP, UM, UIM30/60/10
MSBI & PD Liab25/50/25
MOBI & PD Liab, UM25/50/25
MTBI & PD Liab25/50/20
NEBI & PD Liab, UM, UIM25/50/25
NVBI & PD Liab25/50/20
NHFR only25/50/25
NJBI & PD Liab, PIP, UM, UIM15/30/5
NMBI & PD Liab25/50/10
NYBI & PD Liab, PIP, UM, UIM25/50/10
NCBI & PD Liab, UM, UIM30/60/25
NDBI & PD Liab, PIP, UM, UIM25/50/25
OHBI & PD Liab25/50/25
OKBI & PD Liab25/50/25
ORBI & PD Liab, PIP, UM, UIM25/50/20
PABI & PD Liab, PIP15/30/5
RIBI & PD Liab25/50/25
SCBI & PD Liab, UM, UIM25/50/25
SDBI & PD Liab, UM, UIM25/50/25
TNBI & PD Liab25/50/15
TXBI & PD Liab, PIP30/60/25
UTBI & PD Liab, PIP25/65/15
VTBI & PD Liab, UM, UIM25/50/10
VABI & PD Liab, UM, UIM25/50/20
WABI & PD Liab25/50/10
WVBI & PD Liab, UM, UIM25/50/25
WIBI & PD Liab, UM, Medpay25/50/10
WYBI & PD Liab25/50/20
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For example, if your state requires 15/ 30 auto insurance, you’ll need $15,000 to cover bodily injury for one person and $30,000 for all persons in one accident.

What is the difference between Personal Injury Protection (PIP) and MedPay? Both are additional liability requirements for medical expenses.

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What are some low-income auto insurance options?

In January 2020, nearly 64 million individuals were enrolled in Medicaid. If your Medicaid policy does not cover automobile accident injuries, a good auto insurance policy will. Unfortunately, many drivers throughout the country remained uninsured because they simply cannot afford it.

Many states have set up low-cost auto insurance programs (separate from Medicaid) for those who qualify for it.

California, for example, has set up the California Low-Cost Automobile Insurance Program which helps low-income families obtain affordable auto insurance.

This video discusses the CLCA.

Hawaii also offers help through their Aid to the Aged, Blind, and Disabled (AABD) program, which is there to give assistance to those who need it. This may also include auto insurance if you qualify in Hawaii.

Maryland has a public insurance option, known as Maryland Auto Insurance (formerly MAIF). This provides residents of Maryland auto liability insurance who aren’t able to get. insurance the normal way. MD drivers get at least 20/15 coverage, which breaks down to $20,000 in personal bodily liability and $15,000 in property damage liability. Their website provides more information for citizens of the Old Line State.

Discounts Provided by Major Auto Insurance Companies

Apart from government programs, there are many discounts available through insurance providers. Here are some discounts provided by the major auto insurers in the country.

Discounts Provided by Major Auto Insurance Companies
CompaniesEmergency DeploymentFederal EmployeeForward Collision WarningMembership/GroupMilitaryMilitary GaragingOccupationRecent Retirees
21ST CENTURY
AAAx
ALLSTATExx
AMERICAN FAMILY
AMERIPRISEx
AMICAx
COUNTRY FINANCIALxx
ESURANCExxx
FARMERSxxx
GEICOxxxxx
LIBERTY MUTUALxxxxxx
METLIFExxxxx
NATIONWIDExxx
PROGRESSIVEx
SAFE AUTOx
SAFECOxxx
STATE FARMx
THE GENERALx
THE HANOVERxx
THE HARTFORDxxxx
TRAVELERSxx
USAAxx
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A lot of times, it just comes down to shopping around and doing your research. Inquire about any discounts or special programs that are available. Often times, the insurance will be much cheaper than you expected.

See what your options are by getting a free quote with our tool below.

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