Low-income car insurance in New Jersey: What you need to know

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

In New Jersey, NJM is the cheapest car insurance company with the average rate of $560 . However, that’s based on average rates and may differ for you, so it’s important to shop around.

Does New Jersey offer 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

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

People ask

If there is more than one driver on Medicaid in my house, can they all get the Special Auto Insurance Policy?

If there’s one car and several people in the household with Medicaid, they can all be covered under the same policy. However, the policy can only cover one car.

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

Quick poll

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

How can I get the SAIP policy?

You can get a SAIP from most insurance agencies. If you’re not sure how to get one, call the PAIP customer service at 1-800-652-2471 or look for a PAIP provider. Since January 1, 2011, National Continental Insurance Company has been the one issuing SAIP policies.

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

Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.

Source:

State of New Jersey Department of Banking and Insurance. “Special Automobile Insurance Policy.” Accessed August 2024.

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 is the cheapest car insurance company with the average rate of $560. However, that’s based on average rates and may differ for you, so it’s important to shop around.

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 car insurance will be canceled and you won't have coverage. If you can't pay your car insurance bill, contact your insurance company before the bill is past due to see if you can make arrangements for payment.

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.