NJ residents can get low-income car insurance through the state's program SAIP, often referred to as dollar-a-day car insurance. Drivers can be on two different payment plans which include an up-front payment of $360 for a year of coverage and $365 done over two semi-annual installments. However, you are only able to into this program if you are currently enrolled for Federal Medicaid with hospitalization, are not insured, and have a valid license and registration in the state.
Cheapest Low-Income Car Insurance in New Jersey
Updated: February 10, 2025
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Key Takeaways
New Jersey offers a low-income car insurance program named SAIP to help eligible residents pay as low as $360 per year for coverage.
The cheapest traditional car insurance options for most low-income drivers include Plymouth Rock, NJM, GEICO and Travelers.
Low-income drivers should compare insurance providers and look for discounts to save money.
Does New Jersey Offer Low Income Car Insurance?
What Does NJ Dollar a Day (SAIP) Car Insurance Cover?
NJ's SAIP program offers only basic bodily injury liability coverage to you for serious brain and spinal cord injuries after an accident of up to $250,000 and a $10,000 death benefit. This plan does not cover other outpatient treatments, other driver's injuries, property damage to another driver, and any damages to your vehicle. Multiple drivers can be insured under the same plan if they meet elligiblilty requirements, but coverage can only be on one vehicle per policy.
Plans are offered by National Continental Insurance Company and you can call (800)-652-2471, (856) 352-2454, or use the state's online form to learn more and apply.
Applying For NJ Low Income Car Insurance
Plans are offered by National Continental Insurance Company and you can call (800)-652-2471, (856) 352-2454, or use the state's online form to learn more and start the application process. You'll need all licenses for everyone you want insured that will drive your vehicle, your car's registration, and a Medicaid identification card that shows proof that everyone you want covered is enrolled. Revoked or suspended licenses or registrations will not be accepted.
TREAT NJ'S LOW INCOME PROGRAM AS A LAST RESULT
While you are technically able to legally drive your vehicle in New Jersey with this coverage, this program should be treated as a last resort. This is due to the high risk of a lawsuit if you get into an accident with damages to another driver and their property if you're at fault. So if you can afford it, we recommend comparing options for traditional auto insurance policies to get more comprehensive coverage.
Cheapest Car Insurance Companies for Low-Income Drivers in New Jersey
In New Jersey, Plymouth Rock provides the most affordable minimum coverage for low-income drivers with clean records, regardless of credit standing, including high-risk drivers. GEICO offers the cheapest rates for those with speeding tickets.
| Plymouth Rock | Young Drivers | $51 |
| Plymouth Rock | Adults | $48 |
| Plymouth Rock | Seniors | $47 |
| GEICO | Drivers With a Speeding Ticket | $51 |
| Plymouth Rock | Drivers With a DUI | $53 |
| Plymouth Rock | Drivers With an Accident | $60 |
| Plymouth Rock | Bad Credit | $94 |
*All rates in this table, except for adults, are based on a modified profile of a 40-year-old driver with good credit and a clean record insuring a 2012 Toyota Camry. The age ranges are 22 to 29 for young drivers, 30 to 59 for adults and 60+ for seniors.
Compare Cheap Low-Income Car Insurance Providers
Use the table to find the most affordable provider for your driver profile.
Data filtered by:Results filtered by:
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Age Range:30-59
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Driving Record:Clean
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Credit Score:Good
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Coverage Level:State Minimum Liability Only
| Plymouth Rock | $48 | $580 |
| GEICO | $51 | $617 |
| NJM | $62 | $745 |
| Travelers | $78 | $935 |
| Allstate | $86 | $1,028 |
Cheapest Car Insurance for Families With Low Income in New Jersey
GEICO is the most affordable car insurance provider for low-income families in New Jersey. Monthly rates start at $73 for married couples with a teen, $112 for single parents with a teen and $43 for adding a spouse without a teen.
Data filtered by:Results filtered by:
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Family Type:Married Couple with Teen
| GEICO | $880 | $73 |
| Travelers | $1,229 | $102 |
| Progressive | $1,536 | $128 |
| Allstate | $1,587 | $132 |
| State Farm | $2,572 | $214 |
| Foremost | $2,904 | $242 |
*Rates for couples and single parents with teens apply to a 16-year-old driver. Those for a married couple without children are based on a 40-year-old male with good credit and a clean driving record.
Tips to Save On Car Insurance for Low-Income Drivers
Here are some ways to lower your auto insurance premiums:
- 1
Choose minimum coverage
Minimum coverage is often the cheapest way to meet legal requirements. However, it provides only basic protection and doesn't cover all expenses if you're in an at-fault accident.
- 2
Compare quotes
Getting quotes from multiple providers helps you find the cheapest option. For a comprehensive comparison, use provider websites, independent brokers, provider agents and online comparison tools.
- 3
Look for discounts
Car insurers offer discounts for good students, safe driving and military service. In New Jersey, completing a defensive driving course can save 10% on premiums for three years.
- 4
Increase your deductible
Choosing a higher deductible on collision or comprehensive coverage can lower your premium. Ensure you can afford it if you need to file a claim.
- 5
Consider pay-per-mile insurance
Pay-per-mile insurance combines a low base rate with a per-mile fee, helping low-mileage drivers save by paying only for the miles they drive.
- 7
Get a cheaper car
A car's make, model and year greatly affect insurance costs, as they impact repair and replacement expenses. Choosing a cheaper car to insure, such as an older and more reliable vehicle, can save you hundreds annually.
Minimum Car Insurance Requirements in New Jersey
New Jersey drivers must meet these minimum car insurance requirements:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
If you're leasing or financing your vehicle, you'll need liability coverage of 100/300/100, along with comprehensive and collision protection.
WHY MINIMUM COVERAGE MAY NOT BE RIGHT FOR YOU
Minimum car insurance covers the other driver's costs if you're at fault but not your car repairs or legal bills. If you drive often and can afford it, consider more coverage for better protection.
Cheap Low-Income Car Insurance in New Jersey: Bottom Line
Plymouth Rock offers the cheapest car insurance for low-income drivers in New Jersey. It's also the most affordable for high-risk drivers with a DUI, accident or bad credit. GEICO is best for drivers with a speeding ticket. Compare providers through different channels to find the best deal.
Low-Income Auto Insurance in New Jersey: FAQ
Finding affordable car insurance is challenging for low-income drivers. Here are answers to common questions on reducing premiums.
What is the cheapest car insurance for low-income drivers in New Jersey?
Minimum coverage is generally affordable for low-income drivers without vehicle financing or leasing. Plymouth Rock offers the lowest minimum coverage rate in New Jersey at $48 monthly, and NJM provides the cheapest full coverage at $100.
Does New Jersey have a state-supported low-income car insurance program?
New Jersey offers a low-income car insurance program, the Special Automobile Insurance Policy (SAIP), for eligible residents.
Does your income affect the cost of car insurance in New Jersey?
Income doesn't directly affect car insurance costs in New Jersey. Factors like driving history and vehicle model have a greater impact.
How We Chose the Cheapest Car Insurance for Low-Income Drivers
Study Overview
MoneyGeek examined New Jersey auto insurance rates using data from the New Jersey Department of Banking and Insurance and Quadrant Information Services.
Data Acquisition, Depth and Analysis
MoneyGeek analyzed 328,384 quotes from 14 companies across 370 ZIP codes to determine the average cost of car insurance for drivers with low income in New Jersey.
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates for low-income drivers in New Jersey:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
To determine rates for specific driver profiles, we adjusted factors such as age, family status, driving history and credit standing.
Our study defines seniors as 60 or older, young drivers as 22 to 29 and adults as 30 to 59. Married couples with a child include 40-year-old male and female drivers with a 16-year-old teen. Single parents with children are 40-year-old male or female drivers with a 16-year-old teen.
Coverage Levels and Deductibles
Our data shows rates for minimum coverage, which follows the requirements set by New Jersey law and offers affordable options for low-income drivers.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.