New Hampshire Auto Insurance

New Hampshire is one of only two states in the United States that does not mandate auto insurance for its drivers. Instead, the state emphasizes personal accountability, requiring drivers who opt out of insurance coverage to prove their financial responsibility.

This means drivers must demonstrate their ability to cover costs incurred by other motorists in accidents where they are at fault. Failure to meet these financial obligations can result in the suspension of driving privileges.

The New Hampshire Insurance Department regulates insurance policies to ensure drivers meet state standards. At the same time, the NH Division of Motor Vehicles (DMV) manages driving records and enforces financial responsibility requirements for uninsured drivers.

Although auto insurance is not legally required, it is strongly recommended as it provides essential legal protection and financial security against accidents, theft, and other unforeseen events. The state also sets minimum coverage standards for those purchasing auto insurance.

Interestingly, despite the lack of a mandate, New Hampshire has fewer uninsured drivers than the national average. This trend reflects residents' cultural emphasis on financial responsibility, even without legal insurance requirements.

What are the Auto Insurance Requirements in New Hampshire?

In New Hampshire, drivers can opt for traditional auto insurance or demonstrate financial responsibility to meet state requirements. The financial responsibility option requires proof of $100,000 coverage.

Under NH Revised Statutes Section 264:21, individuals must deposit money or securities into a banking account and submit the receipt to the state treasurer to prove financial responsibility. Securities can be purchased from a savings bank or a trust fund.

Minimum Coverage Requirements for Auto Insurance in New Hampshire

For drivers who choose to purchase auto insurance in New Hampshire, the minimum coverage requirements as specified in NH Rev Stat Section 259:61 are:

• Bodily injury coverage of at least $25,000 per person and $50,000 for more than one person
• Property damage coverage of at least $25,000
• Medical payment coverage of at least $1,000
• Uninsured or underinsured motorist coverage with limits equal to their liability coverage

Bodily Injury Liability Coverage

This coverage protects against legal liability for the accidental injury or death of others, excluding passengers, caused by the operation of a vehicle.

Property Damage Liability Coverage

This coverage pays for damage to someone else's property caused by an accident involving the policyholder, a household member, or another authorized driver.

Medical Payments (MedPay) Coverage

Under NH Revised Statutes Annotated (RSA) Section 264:16, auto insurance policies for personal use must include MedPay. This coverage covers medical expenses resulting from injuries sustained in an accident, regardless of fault. It pays for eligible expenses incurred within three years from the date of the accident.

Uninsured (UM) or Underinsured Motorist (UIM) Coverage

Under NH RSA Section 264:15, drivers with auto insurance must also purchase this coverage. This coverage protects the policyholder, authorized drivers, household members, and passengers from losses caused by an uninsured or underinsured driver, including drivers without insurance and unidentified "hit-and-run" drivers.

Other Types of Auto Insurance Coverage

In addition to the basic coverage requirements, New Hampshire offers several other types of auto insurance coverage that drivers can choose to enhance their protection and tailor their policies to their needs.

Collision Coverage

This type of coverage pays for repairing or replacing a vehicle following an accident with another car or object. It also covers damage to a vehicle driven with the owner's permission. However, it does not extend to damage caused to other vehicles, mechanical breakdowns, or wear and tear.

Comprehensive Coverage

This type of coverage safeguards a vehicle from damage not caused by a collision with another car. This includes protection against natural disasters, storms, fires, vandalism, damage from hitting an animal, and other similar incidents.

Towing and Labor Coverage

This coverage reimburses individuals for towing expenses when their vehicle becomes disabled and requires roadside assistance.

Rental Reimbursement or Transport Expenses Coverage

This coverage pays a set amount to help cover the cost of renting a replacement vehicle while the insured vehicle is being repaired. The coverage is available for a limited duration, as outlined in the policy conditions.

Penalties for Driving Without an Auto Insurance in New Hampshire

In New Hampshire, drivers typically do not face penalties for lacking auto insurance unless specific circumstances apply.

The state employs a system centered around the SR-22 form, a certificate of financial responsibility. This document becomes necessary for drivers convicted of certain serious offenses, including:

• Driving under the influence (DUI) or while intoxicated (DWI)
• Failing to report accidents with significant consequences
• Vehicle-related homicide or assault
• Multiple convictions for speeding, reckless driving, or racing

While police officers may request proof of insurance during traffic stops, drivers cannot be penalized for not having it readily available. However, the consequences of causing an accident without insurance may include the driver's license and vehicle registration suspension until the driver compensates for the damages.

Furthermore, to regain driving privileges, the driver must pay a $100 reinstatement fee and a $25 fee to restore vehicle registration. They must also maintain an SR-22 form for three years, which may be extended if additional legal issues arise.

Moreover, uninsured drivers who cause accidents may face civil lawsuits from other parties involved. They could be liable for various expenses, including medical costs, property damage, lost income, and pain and suffering compensation if found negligent.

How To Choose the Right Auto Insurance in New Hampshire?

Selecting the right auto insurance in New Hampshire requires careful consideration of one's budget, driving habits, and coverage needs. Drivers should compare the auto liability coverage with optional policies like collision and comprehensive coverage.

Evaluating these factors ensures that the chosen policy meets state requirements while providing adequate protection and peace of mind. For more information, check the NH Insurance Department's Auto Insurance Guide.

Selection of an Auto Insurance Provider

When choosing an insurance provider, prioritize financial stability by selecting a company with strong ratings to ensure reliable claim handling. These ratings assess the company's ability to pay out claims. For example, reputable insurers often have ratings of "A" or higher from AM Best, indicating strong financial health.

Customer service is equally important, so research the insurer's reputation for claim processing and overall service quality through sources like J.D. Power and Better Business Bureau. Understanding the insurer's claim processing efficiency can help avoid future complications.

Additionally, explore discounts and incentives, such as those for safe driving, multi-policy bundles, or vehicle safety features. The average discount range is between 10% and 30%, depending on the insurer and specific qualifications.

How To Find a Licensed Insurance Company in New Hampshire?

To find a licensed auto insurance company in New Hampshire, individuals can utilize the State Based Systems website. The NH Insurance Department does not maintain or provide lists of licensed insurance producers or adjusters.

Instead, interested parties should access the Report Generator tool provided by the department's system vendor, State Based Systems. This online resource allows users to generate customized reports containing information about licensed insurance entities operating in the state.

Evaluate and Compare Auto Insurance Quotes

To secure the best rates, individuals should gather and compare quotes from multiple insurance providers. They can begin by consulting their current agent, who often represents several companies, or by contacting other agents or insurers directly.

When comparing quotes, individuals need to evaluate them on equal terms. They should pay attention to coverage details, as differences in protection may explain price variations or reveal better value propositions.

Platforms like The Zebra, NerdWallet, or QuoteWizard offer tools to compare auto insurance quotes from multiple providers.

Customize Auto Insurance Coverage

Tailoring auto insurance coverage to balance individual needs and budget constraints is crucial. When customizing a policy, one should consider the value of their vehicle, driving habits, and risk tolerance.

For newer or more valuable cars, comprehensive and collision coverages may be advantageous, while older vehicles might only need basic liability coverage. Frequent drivers in high-risk areas require more extensive coverage, whereas occasional drivers may be sufficiently covered with minimal protection.

For additional guidance, individuals can refer to the NH Insurance Department's "Auto Cost Premium Rate Comparison," available on its website.

What Factors Affect Auto Insurance Rates in New Hampshire?

Several key factors influence auto insurance rates in New Hampshire, each affecting the cost of premiums differently. The average range of the cost of auto insurance coverage in New Hampshire is estimated to be $211 to $714 annually.

Individuals may check the NH Insurance Department's webinar for more information.

Age, Gender, and Marital Status

Statistical data shows that specific demographics, such as age, gender, and marital status, are more prone to accidents. For instance, younger drivers often exhibit higher rates of risky driving behaviors, which leads to more frequent accidents.

Similarly, male drivers have historically been involved in more accidents than female drivers. Marital status also plays a role; married individuals have fewer accidents than their single counterparts. As a result of these trends, insurance companies adjust their premiums based on the perceived risk associated with these demographic groups.

The higher the risk of claims within a particular group, the more expensive their insurance premiums will be. This practice helps insurers manage risk and have sufficient funds to cover potential claims.

Household Members

The ages and driving records of other household drivers can significantly impact one's insurance premium in New Hampshire. If teenage drivers are included in the policy, the premium will likely rise, even if these teens rarely or never drive the insured vehicles.

One way to potentially mitigate this increase is for the teenage driver to purchase their insurance policy. It is crucial to inform the insurance company of all licensed or permitted drivers in the household, as they may be considered a risk under the auto insurance policy.

Location

Insurance costs in New Hampshire are significantly affected by the location where a vehicle is parked and driven. Drivers in urban areas like Manchester and Nashua generally face higher premiums due to increased traffic, higher accident rates, and more significant vehicle-related theft and vandalism risks.

Additionally, higher repair costs in cities contribute to elevated insurance rates. Conversely, residents in rural areas, such as the White Mountains or the Lakes Region, benefit from lower premiums due to lighter traffic, lower crime rates, and reduced repair expenses.

Coverage Limits

The level of coverage selected directly impacts insurance costs. Policies with higher coverage limits are more expensive than those with lower limits.

Vehicle Type

The characteristics of the vehicle itself influence insurance rates. Factors such as whether the car is a standard or high-performance model, age, and overall value play a role in determining the premium. Vehicles more susceptible to damage, costly to repair, or likely to be stolen typically lead to higher insurance costs.

Vehicle Usage

The way a vehicle is used also affects the insurance premium. Extensive use for long commutes or frequent driving can lead to exceeding mileage thresholds set by insurers. Higher mileage increases the risk of accidents and wear and tear, which can result in higher premiums.

Credit History

Many insurance companies review an individual's credit history when determining rates. A person's credit score and credit history details can influence their premium. A strong credit score may result in lower rates, while a weaker credit profile could lead to higher premiums, as insurers view credit history as an indicator of risk.

How To Save Money on Auto Insurance in New Hampshire?

To save money on auto insurance in New Hampshire, individuals should begin by comparing quotes from multiple insurance companies. Since rates vary significantly between providers, shopping around can uncover the most competitive offers.

Bundling auto insurance with other types of coverage, such as home or renters insurance, through the same provider can also lead to savings. Additionally, maintaining a clean driving record is also essential for keeping insurance premiums low. Adhering to safe driving practices helps avoid accidents and traffic violations, which can result in better rates over time.

Another effective way to reduce premiums is by increasing one's deductible. Lastly, taking advantage of various available discounts and regularly reviewing and adjusting coverage to fit current needs can help prevent overpaying and ensure that insurance remains cost-effective and appropriate.

Impacts of Deductibles on Auto Insurance Costs

In New Hampshire, one key factor for drivers to consider is the deductible amount. A higher deductible typically results in lower premiums, but it also means policyholders will pay more out-of-pocket if they need to make a claim.

Conversely, a lower deductible leads to higher premiums but reduces the amount the policyholder has to pay when making a claim. This approach may be preferable for those who want to minimize their immediate financial risk.

Individuals should carefully weigh this trade-off based on their financial situation and risk tolerance.

Auto Insurance Discounts in New Hampshire

Consumers may be eligible for discounts that can lower their insurance premiums. When buying or renewing a policy, it is essential to ask about available discounts, as the options and availability can differ between providers.

Common discounts may include:

• Security Features Discount
• Combined Policies Discount
• Safe Driving Record Discount
• Academic Performance Discount
• Limited Vehicle Use Discount
• Multi-vehicle Coverage Discount

What To Do After an Auto Accident in New Hampshire?

The top priority after an accident is to ensure everyone's safety. If possible, drivers should move their vehicles out of traffic to prevent further accidents and check for injuries. If injuries are suspected or visible, calling 911 is essential, even if they seem minor, as some issues may not be immediately apparent.

Law enforcement should be contacted to document the scene and create an official report, crucial for insurance claims and determining liability. At the scene, drivers must exchange and document critical information, such as names, contact details, driver's license numbers, license plate numbers, insurance policy numbers, and vehicle registration details.

Noting the vehicles' make, model, and color and taking photos of the scene and damage can provide valuable evidence. Collecting witness contact information is also helpful. Drivers should avoid making statements interpreted as admitting fault, as these could be used against them in legal or insurance proceedings.

Reporting an Accident in New Hampshire

Under NH Rev Stat Section 264:25, drivers involved in accidents resulting in property damage over $1,000, injury, or death are legally required to report the incident. A written report must be submitted to the New Hampshire DMV within 15 days using the Operator's Report form ( DSMV 400), which should be mailed to:

If law enforcement is called, they will file a State of New Hampshire Uniform Police Traffic Accident Report ( DSMV 159) to fulfill the reporting requirement.

However, obtaining a police report can take weeks, so drivers may still wish to file their report to expedite insurance claims. A Request for Motor Vehicle Records ( DSMV 505) can be submitted to get a copy of the police report.

Accident details will appear on the driver's record for five years, though the record will not indicate who is at fault.

Filing an Auto Insurance Claim in New Hampshire

In New Hampshire, individuals involved in an accident have two main options for filing an insurance claim: a "first-party" claim with their insurer, assuming they have collision coverage or a "third-party" claim with the at-fault driver's insurance for liability coverage.

It is often recommended to file with one's insurer first, even if a deductible is required, as the insurer may recover costs from the at-fault driver's insurance, potentially reimbursing the deductible.

To initiate a claim, individuals should promptly report the accident to their insurance company. If there is significant damage or injury, contacting the police and obtaining a copy of the police report is essential. This report and other evidence from the accident should be submitted to the insurer.

If issues arise with an auto insurance claim, individuals can file a complaint with the NH Insurance Department. Complainants can contact the Consumer Services Unit at 800-852-3416 or email consumerservices@ins.nh.gov. Complaints can also be submitted through an online form system.

Filing an Accident Lawsuit in New Hampshire

In New Hampshire, the statute of limitations for filing lawsuits related to car accidents is three years from the accident date, as specified by NH Rev Stat Section 508:4, which applies to injury and property damage claims. However, for wrongful death cases, the three-year period starts from the date of the individual's death rather than the accident date.

Adhering to this timeframe is crucial, as failing to do so typically results in the dismissal of the case. Note that this statute of limitations pertains to legal claims, not insurance claims.

Impact of Accidents on Insurance Rates in New Hampshire

Accidents in New Hampshire can lead to increased insurance premiums, as insurers may view the driver as a higher risk. The impact on rates often depends on fault and the number of points added to the driver's record.

Some insurers offer accident forgiveness programs that might prevent a rate increase after a first accident, though these programs are not always applicable. The effects on insurance rates can persist for up to five years, so maintaining a clean driving record and comparing rates from different insurers can help mitigate long-term impacts.