Jeffrey Wade
Unlike most states, New Hampshire does not require drivers to have auto insurance. However, if you are convicted of certain driving violations, such as driving while intoxicated, speeding, or leaving the scene of an accident, you will be required to purchase a policy. Additionally, if you are at fault in an accident, you must be able to show that you have the funds to cover the state's financial responsibility requirements, which include liability coverage for bodily injury and property damage, as well as medical payments and uninsured motorist coverage. While auto insurance is not mandatory in New Hampshire, it is recommended to protect yourself financially in the event of an accident.
| Characteristics | Values |
|---|---|
| Auto insurance required | No, unless convicted of certain driving violations |
| Motor Vehicle Financial Responsibility Law (FRL) | Owners of registered motor vehicles must comply with FRL by proving they can pay for personal injuries and property damage they cause in an accident |
| FRL compliance methods | Deposit money or securities with the state treasurer, or buy an auto insurance policy |
| Basic policy coverage | $25,000 for bodily injury liability per person; $50,000 for bodily injury liability per accident; $25,000 for property damage; $1,000 or more for medical payments coverage; and uninsured motorist coverage with limits that match bodily injury |
| Auto insurance recommended | Yes |
What You'll Learn
New Hampshire's Motor Vehicle Financial Responsibility Law (FRL)
New Hampshire does not require drivers to carry auto insurance unless they have been convicted of certain driving violations. However, the owner of a registered motor vehicle must comply with the state's Motor Vehicle Financial Responsibility Law (FRL). This means that they can pay for personal injuries and property damage in the event of an accident.
The Financial Responsibility Unit of the New Hampshire Department of Safety's Division of Motor Vehicles (DMV) will notify a person in writing if they are required to purchase and maintain auto insurance. This may be the result of a conviction, accident, or administrative action. For example, a person may be required to purchase auto insurance if they are convicted of driving while intoxicated, vehicular homicide, leaving the scene of an accident, or a second or subsequent offence of reckless operation of a motor vehicle.
If a person is required to have auto insurance, the policy must cover a minimum of $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $25,000 in property damage coverage. The policy must also include at least $1,000 of medical payments coverage and uninsured and underinsured motorist coverage.
There are different ways to comply with the FRL. For example, you can deposit money or securities with the state treasurer. However, the easiest way is to buy an auto insurance policy with the minimum coverages required by the FRL.
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When is auto insurance required in New Hampshire?
New Hampshire is the only state in the US that doesn't require drivers to carry auto insurance. However, there are certain circumstances in which auto insurance is required in the state.
Auto insurance is required in New Hampshire if you have been convicted of certain driving violations. These include:
- Driving while intoxicated
- A second speeding ticket
- A second warning or ticket for other traffic violations
- A DUI
- Leaving the scene of an accident
- Being at fault for a previous accident when uninsured
If you are required to have insurance and are caught driving without it, you will lose your driving privileges and have to pay a fee to get them reinstated.
Even though auto insurance is not usually required by law in New Hampshire, it is always recommended. If you cause an accident, you will be liable for any costs associated with it, including medical bills and the cost to repair or replace property. If you are not able to pay these costs out of pocket, you will need auto insurance.
If you are liable for someone else's injuries or damages in New Hampshire, you must be able to show that you can cover the costs. This can be done by purchasing auto insurance, or by depositing $100,000 in cash or securities with the state treasurer.
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Consequences of driving uninsured in New Hampshire
New Hampshire is the only state in the US that doesn't require drivers to carry auto insurance unless they have been convicted of certain driving offenses. However, driving uninsured can have serious consequences, especially if you are in an accident.
If you are in an accident while driving without insurance in New Hampshire, the state may suspend your driver's license and vehicle registration until you have paid for any damage and filed an SR-22 form. This form acts as proof that you have purchased car insurance. You will also need to report the accident to the Bureau of Financial Responsibility. If you are at fault for the collision and the other party sues, your suspension will last until you pay for the damages. This could mean compensating the other party to the same extent as a basic auto insurance policy would cover.
If you are caught driving without insurance in New Hampshire, you can expect the following:
- Driving privilege suspension
- License plate, vehicle registration, and driver's license suspension until the judgement and requirements are fulfilled
- A license/operation privilege reinstatement fee
- A registration restoration fee
- Maintenance of the SR-22 filing for three years, provided you don't incur any traffic violations during this period
If you don't restore your driving privileges within three years after your suspension, you will need to retake the driver's license exam.
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New Hampshire's suggested minimums for auto insurance
New Hampshire is a fault-based auto insurance state, meaning that a driver who causes an accident is liable for all resulting injuries and other losses. While New Hampshire does not require drivers to carry auto insurance, drivers must be able to show they have the funds to cover the state's financial responsibility requirements in the event of an accident.
The state's Motor Vehicle Financial Responsibility Law (FRL) requires the following minimum insurance coverage for those who choose to purchase it:
- $25,000 for bodily injury liability per person
- $50,000 total bodily injury per accident
- $25,000 property damage
- $1,000 medical payments
- Uninsured motorist bodily injury: $25,000 per person and $50,000 per accident
These minimums are often referred to as "25/50/25 liability coverage" in the insurance business.
In addition to the above, New Hampshire law requires every liability policy to include uninsured motorist insurance and medical payments insurance.
While these minimums may be enough to cover minor injuries or property damage, they are unlikely to be sufficient in the event of more serious accidents. As such, it is recommended that drivers purchase additional coverage to protect their finances, such as collision insurance and comprehensive insurance.
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Additional auto insurance coverage options
In the state of New Hampshire, auto insurance is not mandatory unless the driver has been convicted of certain driving violations. However, drivers must demonstrate their ability to cover the state's financial responsibility requirements in the event of an at-fault accident. While the state's minimum requirements outline the basic coverage, there are several additional auto insurance coverage options worth considering. Here is an in-depth look at these additional coverage options:
Collision Insurance
Collision insurance covers the cost of repairing or replacing your vehicle if it overturns or collides with another vehicle or object. This type of insurance is particularly useful if you are at fault in an accident, as it will cover the cost of repairing or replacing your car. It is also worth noting that if you have financed the purchase of a new vehicle, your lender will likely require you to have collision insurance.
Comprehensive Insurance
Comprehensive insurance provides coverage for incidents other than collisions. This includes damage caused by fire, flood, vandalism, hail, falling objects, or even hitting an animal. Similar to collision insurance, comprehensive insurance will pay the actual cash value (ACV) of your vehicle minus your comprehensive deductible in the event of a total loss. Lenders or leasing companies will also typically require this type of insurance if you have financed a new car.
Uninsured Motorist Coverage
While some states mandate uninsured motorist coverage, it is optional in New Hampshire. This type of coverage is essential if you are involved in an accident with an uninsured driver or a hit-and-run driver. It will cover your bodily injury damages up to your coverage limit. Additionally, you can purchase underinsured motorist coverage, which will protect you if the at-fault driver's insurance is insufficient to cover the damages.
Medical Payments Coverage
Medical payments coverage, also known as MedPay, takes care of the medical and funeral expenses of an insured person injured or killed in an accident. It covers the insured's medical costs following an accident, regardless of fault. In New Hampshire, MedPay insurance with a per-person limit of at least $1,000 is required by law.
Roadside Assistance
Roadside assistance is a valuable add-on that provides peace of mind while travelling. It typically includes services such as towing, flat tire replacement, and fuel delivery. If you frequently travel or have young children, roadside assistance can be a worthwhile investment to avoid being stranded on the side of the road.
Rental Car Reimbursement
Rental car reimbursement coverage takes care of the cost of renting a replacement vehicle while your car is being repaired after an accident. This type of coverage is particularly useful if you rely on your vehicle daily and need a temporary replacement during repairs.
Gap Insurance
If you have leased or financed your vehicle, gap insurance is worth considering. It covers the potential "gap" between what you owe on your vehicle and its market value in the event of a total loss. This type of insurance ensures that you are not left with outstanding payments if your car is stolen or totaled.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) is required in some states and provides coverage for medical costs and lost wages if you are injured in an accident, regardless of fault. While New Hampshire does not require PIP, it can be a valuable addition to your policy, especially if you frequently have passengers in your vehicle.
When considering additional auto insurance coverage options, it is important to weigh the costs and benefits of each option and decide which ones align with your specific needs and budget.
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Frequently asked questions
No, New Hampshire is the only state in the U.S. that doesn't require drivers to carry auto insurance unless they've been convicted of certain driving offenses. However, if you're required to have insurance and you're caught without it, you'll lose your driving privileges and pay a fee to get them reinstated.
If you're at fault in an accident, you must be able to show that you have the funds to cover the state's financial responsibility requirements, which are the same as a basic policy: $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, $25,000 for property damage, $1,000 or more for medical payments coverage, and uninsured motorist coverage with limits that match bodily injury.
If you're required to have insurance and are caught without it, your driving privileges will be suspended and you'll have to pay a fee to get them reinstated. If you cause an accident while driving uninsured, your driver's license and vehicle registration may be suspended until you've paid for any damage and filed an SR-22 form, which acts as proof of purchasing car insurance.
