Low-income car insurance in New Jersey

Q: Does New Jersey have car insurance for low-income individuals?

Yes , New Jersey has a car insurance program for low-income individuals. It’s called New Jersey’s Special Automobile Insurance Policy (SAIP).

New Jersey government car insurance for low-income drivers

Low-income drivers can apply for New Jersey’s Special Automobile Insurance Policy (SAIP) to get affordable car insurance and meet legal requirements.

The requirements for the New Jersey low-income program are:

Have a valid driver’s license
Be currently enrolled in Federal Medicaid with Hospitalization

Note that not all Medicaid programs qualify for New Jersey’s SAIP program. You can purchase a SAIP policy through most local insurance agents. The program is also known as New Jersey’s dollar-a-day car insurance because the policy costs $365 a year, or one dollar a day.

The minimum car insurance requirements in New Jersey are as follows:

Minimum liability coverage limits	25/50/25
Average annual premium	$853
Other types of insurance required (if any)	UIMPD, UMBI, UMPD and PIP

Read our methodology

Remember that if you have a loan on your car, you’re required to carry full coverage, which includes collision and comprehensive.

Best low-income car insurance in New Jersey

New Jersey Manufacturers came out on top as the best pick for low-income car insurance.

People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in New Jersey and compared them on rates for state minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.

These are the best low-income car insurance companies in New Jersey.

Company	Average annual premium	J.D. Power	AM Best	NAIC	Insurance.com score
New Jersey Manufacturers	$560	834	A+	0.14	4.19
GEICO	$588	818	A++	0.91	3.33
Plymouth Rock Assurance	$618	807	A-	0.45	2.69
Travelers	$983	822	A++	0.49	2.67
State Farm	$1,089	843	A++	0.7	2.61
Progressive	$952	814	A+	0.65	2.47
Allstate	$936	825	A	0.65	2.4
Farmers	$1,073	803	A	0.8	2.27

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Cheapest low-income car insurance in New Jersey

Based on state minimum coverage, we found that the cheapest car insurance company in New Jersey is NJM at an average rate of $560 a year.

Price is the number one consideration when working with a tight budget. We gathered rates from car insurance companies in New Jersey to find the cheapest options on average.

Company name	Average annual premium	Average monthly premium
NJM	$560	$47
GEICO	$588	$49
Plymouth Rock Assurance	$618	$51
Selective Insurance	$895	$75
Allstate	$936	$78
Progressive	$952	$79
Travelers	$983	$82
Farmers	$1,073	$89
State Farm	$1,089	$91

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PEOPLE ASK:

What can I do if I can’t afford car insurance in New Jersey?

If you can’t find affordable car insurance in New Jersey, try working with a local agent who knows the market and some of the smaller insurance companies available. Consider a usage-based program to reduce costs, reduce coverage, drive less and ask about additional discounts.

Car insurance discounts for low-income drivers in New Jersey

Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in New Jersey can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.

Discount type	% Discount
Years Licensed	28%
Years Insured	24%
Vehicle Ownership	11%
Homeowner	10%
Electronic Signature	10%
Primary Use	9%
Multi Policy	9%
Telematics	8%
Profession	8%
Loyalty - Years Renewal With Company	8%
Daily Commute	8%
Days Advanced Purchase	7%
Purchase Status	6%
Payment Type	5%
Marital Status	4%
Safety Devices	4%
Air Bags	4%
Education	3%
Lower Annual Mileage	3%
Electronic Funds Transfer	3%
Days Per Week Driven	2%
Paperless/Electornic Documents	2%
Anti-Theft Device	1%

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Methodology

170+

insurance companies analyzed

34,000+

ZIP codes examined

53M+

insurance quotes analyzed

National and state average rates are based on state minimum car insurance.

This data set is based on:

Bodily injury liability that matches the state minimum requirement
Property damage liability that matches the state minimum requirement
Any other state-required coverage, which may include personal injury protection, medical payments and
uninsured/underinsured motorist coverage
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

Source:

State of New Jersey Department of Banking and Insurance. "Special Automobile Insurance Policy."
Accessed August 2025.

Low-income car insurance in New Jersey: Frequently asked questions

What is the cheapest car insurance company for low-income people?

In New Jersey, NJM offers the lowest average rate for car insurance at $560. However, since that’s based on average rates, your actual cost may vary, so it’s important to shop around and compare quotes.

Does New Jersey have car insurance for low-income individuals?

Yes, New Jersey has a car insurance program for low-income individuals. It’s called New Jersey’s Special Automobile Insurance Policy (SAIP).

What happens if I can’t pay my car insurance?

If you don’t pay your car insurance bill, your coverage will be canceled and you won’t be insured. If you’re unable
to pay, reach out to your insurance company before the bill is overdue to see if you can set up a payment
arrangement.