In This Article
Mike’s Quick Answer
New Jersey’s Dollar-a-Day policy, formally called the Special Automobile Insurance Policy or SAIP, is a limited medical-coverage policy for people enrolled in qualifying federal Medicaid with hospitalization. It costs about $365 per year and covers emergency treatment immediately after an accident, treatment of serious brain and spinal-cord injuries up to $250,000, and a $10,000 death benefit. It does not provide ordinary bodily-injury liability coverage, property-damage liability, collision, comprehensive, or broad outpatient PIP protection.
SAIP Was Designed as a Narrow Safety Net
The policy helps eligible Medicaid recipients satisfy New Jersey’s automobile insurance requirement at very low cost. Eligibility is tied to the specific Medicaid program, not merely low income or possession of any Medicaid card.
A licensed producer verifies eligibility at purchase and renewal. Coverage can change if Medicaid eligibility changes, so the current policy and program status should be checked.
Medical Coverage Is Limited
The policy addresses emergency treatment following the accident and catastrophic brain or spinal-cord injury within the stated terms. Ordinary follow-up visits, therapy, imaging, injections, and other outpatient treatment may rely on Medicaid rather than SAIP.
The $250,000 figure should not be mistaken for full standard PIP available for any injury. It is tied to the serious conditions described by the policy and official program information.
SAIP Does Not Protect Against Claims You Cause
Unlike a standard policy, SAIP does not provide ordinary liability coverage for bodily injury or property damage caused to others. The driver can face personal exposure after causing a crash.
It also does not pay to repair the insured vehicle. Collision and comprehensive are not part of the Dollar-a-Day protection.
The Policy Choice Affects Injury Rights
Limited coverage can complicate medical billing, uninsured-motorist protection, and claims after a crash. Policy status and the injured person’s role as owner, driver, passenger, or pedestrian matter.
I explain the coverage in force for the existing accident. I am not an insurance producer. Eligible consumers should ask a licensed producer and NJDOBI to compare SAIP with Basic and Standard policies before buying.
Frequently Asked Questions
Does Dollar-a-Day cover damage I cause to another car?
No. Official NJDOBI guidance states that SAIP does not provide ordinary liability coverage for other people or property.
Does it cover routine physical therapy after a crash?
SAIP’s medical coverage is narrow. Nonemergency outpatient care may be handled through qualifying Medicaid, subject to program rules.
Can anyone with Medicaid buy SAIP?
No. Eligibility requires enrollment in qualifying federal Medicaid with hospitalization, verified through the Medicaid identification information.
Sources and Further Reading
About Michael B. Fusco
I am Michael B. Fusco, a New Jersey personal injury lawyer who is Certified by the Supreme Court of New Jersey as a Civil Trial Attorney. For more than 15 years, I have represented injured people throughout New Jersey and have recovered more than $75 million in gross settlements and verdicts. I started Fusco Law because clients deserve direct answers, careful preparation, and a lawyer who remains personally involved. I can help guide clients through the complexities of a New Jersey personal injury case from the first investigation through settlement or trial. Past results do not guarantee future outcomes.
A Dollar-a-Day Policy Is Involved in Your Crash?
The policy is legal but extremely limited, so other medical and liability coverage must be investigated. Call 732-INJURED or contact Fusco Law so I can explain what SAIP does and does not provide.
Important Disclaimer
This article provides general information only. It is not legal advice, and it does not create an attorney-client relationship. Contacting Fusco Law does not create an attorney-client relationship or make a communication privileged unless and until the firm agrees in writing to represent you. I am a personal injury attorney, not a medical doctor, accountant, tax adviser, or financial adviser. Medical, tax, accounting, and financial questions should be directed to an appropriately licensed professional. Every matter depends on its own facts and the law that applies. If you have questions about a New Jersey personal injury claim, contact Fusco Law.