Car insurance can be expensive. If you’re paying high car insurance rates, you may be wondering how to reduce the cost of car insurance. But did you know you could qualify for dollar-a-day insurance coverage?
If you or your family are struggling to make ends meet you could be eligible for dollar-a-day insurance coverage. This gives you minimum car insurance coverage for only $365 a year, or a dollar a day.
This isn’t available in every state though, so keep reading to find out what dollar-a-day insurance is, and how to qualify for it.
But before you do, enter your ZIP code into our free comparison tool above to find affordable dollar-a-day insurance coverage in your area.
What is dollar-a-day insurance coverage?
Simply put, dollar-a-day insurance coverage is a government insurance plan that allows you to drive legally for only $365 a year.
Dollar-a-day insurance coverage is only available in the state of New Jersey, where it is officially called the Special Automobile Insurance Policy, or SAIP.
SAIP coverage is extremely limited, but it does provide proof of insurance so that you can drive legally. However, SAIP insurance does not meet New Jersey’s minimum auto insurance requirements as it offers no liability coverage to pay for injuries or damages to others.
SAIP coverage only covers emergency treatment for the policyholder immediately after an accident and additional medical treatment for critical brain and spinal cord injuries up to $250,000.
There is also a $10,000 death benefit paid out to the policyholder’s family should they die in a collision.
How do I qualify for dollar-a-day insurance coverage?
Dollar-a-day insurance coverage is extremely limited, so even if you qualify you will not be well-protected. However, if you have no other option and cannot find affordable auto insurance in New Jersey, dollar-a-day insurance coverage will allow you to drive legally.
According to the state of New Jersey, in order to qualify for dollar-a-day insurance, you must be an uninsured driver in New Jersey. If you already have car insurance coverage, you won’t qualify.
Secondly, you and anyone on the policy must be enrolled in a Medicaid program that includes hospitalization. Other Medicaid programs will not make you eligible.
However, if you become unenrolled in Medicaid, your dollar-a-day insurance policy will continue until your next renewal (one year), at which point you will have to find another policy.
And finally, your license and registration must be in good standing, that is, not suspended or revoked. Otherwise, you will not be eligible.
If you meet these requirements, then you should be able to qualify for dollar-a-day insurance coverage. If not, check out our New Jersey car insurance guide for the cheapest rates and best companies. (For more information, read our “Best Cheap Car Insurance Companies“).
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!
Now that you know all about dollar-a-day insurance coverage, enter your ZIP code into our free comparison tool below to find affordable dollar-a-day car insurance quotes in your area.
