Dollar-a-Day Car Insurance Coverage: What to Know

Dollar-a-day insurance is government insurance coverage provided by the state of New Jersey. While dollar a day insurance only costs $365 a year, coverage is extremely limited and does not provide liability coverage. You must meet certain requirements in order to be eligible for dollar-a-day insurance, including being enrolled in Medicaid with hospitalization and having your license and registration in good standing.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Apr 1, 2021

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Things to Know

  • Dollar-a-day insurance is government car insurance that only costs $365 a year
  • Dollar-a-day insurance is only available in the state of New Jersey
  • You must be enrolled in Medicaid with hospitalization and have your license and registration in good standing to be eligible

Comparing rates is the best way to find cheap car insurance quotes. But if you’re still unable to afford your state’s minimum required car insurance coverage, dollar-a-day insurance may be right for you.

With dollar-a-day insurance, you only pay $365 a year to have legal car insurance coverage so you can safely drive on the roadways. However, not everyone is eligible for dollar-a-day car insurance rates.

Keeping reading to learn what dollar-a-day insurance is, what it covers, and where you can find it. But before you do, enter your ZIP code into our free comparison tool to find affordable car insurance in your area.

What is dollar-a-day insurance?

Dollar-a-day auto insurance is exactly how it sounds — legal car insurance coverage that costs you only $365 a year or a dollar a day. Sounds like a great deal, right?

However, dollar-a-day car insurance quotes are not for everyone. It was created by the state of New Jersey for low-income individuals and families who otherwise cannot afford to purchase the minimum amount of required car insurance coverage in the state.

As such, there are several conditions you must meet in order to be eligible to buy dollar-a-day car insurance. According to the state of New Jersey, you must be currently enrolled in Medicaid with hospitalization in order to be eligible for this coverage.

Your driver’s license and registration must be in good standing as well (not suspended or revoked) in order to qualify.

If you meet these requirements, you can sign up for dollar-a-day insurance NJ at most insurance agencies or call the Personal Automobile Insurance Plan customer service number at 1-800-652-2471.

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What does dollar-a-day insurance cover?

While affordable, dollar-a-day insurance does not offer the same amount of coverage as traditional car insurance policies with major providers.

While dollar-a-day insurance will allow you to legally drive, it does not come with liability coverage for damage you cause to another person’s vehicle or property, which is typically required by many states.

Instead, dollar-a-day insurance only covers emergency treatment immediately following a car accident and the treatment of serious brain and spinal cord injuries up to $250,000. There is also a $10,000 death benefit.

As you can see, dollar-a-day insurance is not enough to keep you well-protected, but for those struggling to make ends meet, the cheap rates can help free up money to pay for more important things while still keeping you legal on the roadways.

But if dollar-a-day insurance coverage isn’t enough to make you feel safe, use these cheap car insurance tricks to help make your rates more affordable.

Now that you know how dollar-a-day insurance works, enter your ZIP code into our free comparison tool below to find affordable dollar-a-day car insurance in your area.

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