New Hampshire Auto Insurance: It’s Not What You Think

“Live free or die” is the state motto. That’s about as hands-off as it gets, so it doesn’t come as a big surprise that New Hampshire made the unique decision not to require drivers to carry motor vehicle insurance.

Here’s what may come as a surprise: New Hampshire has one of the lowest rates of uninsured motorists in the country. According to Bankrate, 7.8% of New Hampshire drivers are uninsured. That’s the fifth lowest percentage in the country. There are four states with uninsured motorist rates over 20%?

So…why do granite staters buy auto insurance if they don’t have to?

There are two reasons most New Hampshire residents carry motor vehicle insurance–and you probably should, too.

Why New Hampshire Drivers Buy Insurance

The two big reasons to carry motor vehicle insurance in New Hampshire are closely related: 

1. Even though auto insurance isn’t required, proof of financial responsibility is. 

Though auto insurance isn’t required in the state, if you’re in an accident you must be able to prove financial responsibility. The other option for proving that you can cover liability for an accident (unless you’re a corporation) is to deposit funds with the state treasurer. Obviously, that’s not an option for everyone.

1. If you don’t have insurance and are in an at-fault accident, you’ll have to pay for the damages. 

Automobile insurance covers your liability to someone you injure or someone whose property you damage–at least, up to your insurance coverage limits. If you have no insurance and you are found responsible for an accident, you could be personally on the hook for damages like the injured person’s medical bills and lost wages and repairs to their vehicle.

If you’re in an accident without insurance and can’t deposit sufficient funds to cover possible damages or a judgment is entered against you, your driver’s license and license plates could be suspended. 

Other Reasons to Buy Auto Insurance In New Hampshire

There are good reasons to purchase motor vehicle insurance in New Hampshire even if you can afford to provide proof of financial responsibility and pay for damages. They mostly involve saving time and stress. 

When you have automobile insurance and you’re in an accident, you give the other driver your insurance information. If you were at fault, they file a claim, and your insurance carrier manages that claim. They may negotiate a settlement without you doing any more than giving them a statement about the accident. If the claim isn’t settled and the injured person files a lawsuit, the insurance company provides the attorney. 

Minimum Insurance Coverage in New Hampshire

Though insurance coverage isn’t mandatory in the state, if you do purchase auto insurance there are mandatory minimums. Currently they are: 

• $25,000 in bodily injury coverage, up to $50,000 if two or more people are injured
• $25,000 in property damage liability
• $1,000 in no-fault medical payments
• Uninsured motorist coverage in the same amount as your bodily injury liability coverage. 

Uninsured motorist coverage provides protection for you if you are injured by an uninsured driver. The policy will typically cover the same damages you would have recovered from the responsible driver had they been insured, up to your policy limits. 

You will also have the option of purchasing additional coverage such as: 

• Higher limits on the categories listed above
• Collision coverage, which pays for damage to your vehicle in a crash
• Comprehensive coverage, which covers other types of damage to your vehicle such as hail damage or vandalism
• Towing coverage
• Rental reimbursement, which covers the cost of a rental car for a short time while your vehicle is being repaired or replaced after a crash

Hit by an Uninsured Driver in New Hampshire?

If the driver who hit you doesn’t have insurance, you may still have options. You should talk to an experienced New Hampshire car accident lawyer right away to learn more about possibilities such as: 

• Identifying additional possible responsible parties
• Pursuing compensation directly from the responsible driver
• Pursuing compensation under your own uninsured motorist policy

Help for New Hampshire Car Accident Victims

To schedule a free consultation with attorney Kevin P. Broderick, just call 978-459-3085 right now. Kevin has been helping people who were injured in Massachusetts and New Hampshire car accidents for decades, and can provide the knowledge, guidance, and determination you need.