Due to the fact that the Garden State requires motorists to carry car insurance coverage to pay for $15,000 of medical protection per person and up to $250,000 for serious injuries, the state developed what is known as the Special Automobile Insurance Policy (SAIP) to help qualifying residents who may drive uninsured due to limited financial resources. The program provides a more affordable option to those who cannot afford to pay for policies at the regular market rates.

Breakdown of the NJ Special Automobile Insurance Policy

In order to be eligible for the SAIP, residents must be enrolled in Federal Medicaid With Hospitalization. (Although not all Medicaid recipients will be eligible for the assistance, this is commonly thought of as Medicaid car insurance in NJ.) Policies are available through most insurance agencies and the agent or producer will be able to determine eligibility from the number located on the motorist's Medicaid ID card. Individuals with a suspended or revoked driver's license or registration are not eligible for the policy.

If eligible, the policy will provide emergency medical treatment to the policyholder immediately following a traffic accident and will pay for the treatment of serious brain and spinal cord injuries up to $250,000. Policies also provide a $10,000 death benefit. However, items that are not covered are outpatient treatments covered by Medicaid, property damage or bodily injury caused to another party or damage to the individual's own vehicle. To cover these risks one must purchase the different types of New Jersey car insurance coverage provided by auto insurance companies that will offer the type of protection desired.

The cost of SAIP policies is very cheap at an annual premium of $360 if paid up front or if a person chooses, the car insurance policy can be paid in two installments at a price of $365. At time of purchase an individual will need to be able to provide a driver's license, vehicle registration and a Medicaid ID card. One should be aware that at any point they are no longer eligible for a Special Automobile Insurance Policy if they no longer are enrolled in Medicaid; coverage will not cancel if enrollment terminates during the term, but at time of renewal.