The car insurance is a necessary but expensive feature. Not everyone can afford it in full. To help such people, The State of New Jersey has developed Special Automobile Insurance Policy (SAIP) also unofficially called 1 dollar a day car insurance.
Quick Facts
The SAIP initiative was developed to help drivers who are likely to drive uninsured due to their limited financial resources.
Eligible to get the policy are certain New Jersey residents who are currently enrolled in Federal Medicaid with hospitalization and whose driver’s license isn’t revoked or suspended.
Not all Medicaid programs qualify – the insurance provider can check if you qualify by the number of your Medicaid ID.
The SAIP costs $365 per year. That’s why it is often called 1 dollar a day car insurance.
How to Get the SAIP?
You can obtain the SAIP at most insurance providers or get advice how to obtain one from the New Jersey Personal Automobile Insurance Plan (NJ PAIP) customer service.
What Is Covered and What Is Not?
Obviously, the insurance that cheap can’t be good. It is recommended only for those who can’t afford better. The SAIP provides a limited medical coverage, a $10,000 death benefit and no liability or collision coverage at all. It covers emergency room treatment immediately following an accident. Additional medical treatment is not included in the coverage unless the insured person has suffered serious brain or spinal cord injuries. If so, the SAIP provides up to $250,000 for treatment.
If the driver causes an accident and injures someone else, the SAIP will not cover it. The driver would be personally responsible for any damages.
If the car is damaged in a collision, the SAIP will not provide any money for the repairs.
However, both liability and collision coverages can be purchased separately in addition to the SAIP.
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Photo in the text: Car insurance © Pictures of Money/CC BY 2.0