Orlando Harmon
Unlike most states, auto insurance in New Hampshire is not required by law for all drivers. However, drivers are still required to cover the costs of any bodily injury or property damage they cause in an accident. The easiest way to cover these costs is with an auto insurance policy. The state's live free or die motto is reflected in its auto laws, which do not require insurance for all, but do require drivers to be financially responsible for any accidents they cause.
| Characteristics | Values |
|---|---|
| Is auto insurance required in New Hampshire? | No, but there are exceptions. |
| What are the exceptions? | Drivers with a DUI, those convicted of driving offenses such as leaving the scene of an accident, and those at fault for a previous accident when they did not have insurance. |
| What are the minimum requirements for those who choose to purchase auto insurance? | $25,000 bodily injury liability per person, $50,000 total bodily injury per accident, $25,000 property damage, and $1,000 medical payments. |
| What is uninsured motorist coverage? | Coverage for when you are in an accident with an uninsured or underinsured driver. |
| What is medical payments coverage? | Coverage for your medical expenses and those of your passengers in an accident, regardless of who is at fault. |
| What is collision coverage? | Coverage for the cost to repair or replace your car after a collision with another vehicle or object. |
| What is comprehensive coverage? | Coverage for damage to your car not related to a collision, such as natural disasters, fires, vandalism, or hitting an animal. |
| What is loan/lease gap insurance? | Coverage for when the cost of repairing your totaled car exceeds its actual cash value, but you still owe money on it. |
What You'll Learn
New Hampshire auto insurance laws and minimum coverage requirements
New Hampshire is one of the few states that does not require drivers to have auto insurance. However, if you are in an accident, you will be liable for any costs associated with it, including medical bills and the cost to repair or replace property. Therefore, it is highly recommended that you have a solid car insurance policy.
If you do opt for car insurance, there are minimum coverage requirements. Your auto insurance policy must have Auto Liability Coverage limits of at least $25,000 per person and $50,000 per accident for Bodily Injury (BI), a Property Damage coverage limit of $25,000, and at least $1,000 of Medical Payments (MedPay) coverage. Finally, if you buy auto insurance in New Hampshire, you must also purchase Uninsured Motorist (UM) Coverage at limits equal to your Auto Liability Coverage.
Bodily Injury coverage protects you against legal liability for the accidental injury or death of others (excluding your passengers) caused by the operation of your car. Property Damage coverage pays for damage to another person's property when you, a household member, or another authorized driver causes an accident. Medical Payments coverage covers medical expenses for you and your passengers in an accident, no matter who was at fault. Uninsured Motorist coverage protects you, anyone you let drive your car, household members, and passengers against losses caused by an uninsured or underinsured driver.
In addition to the above, New Hampshire law requires you to show proof of financial responsibility if you're liable for someone else's injuries or damages. This can be done by getting car insurance.
There are some exceptions to the rule, and certain groups of drivers are required to show proof of insurance. These include drivers who have been convicted of a DUI, those convicted of driving offenses such as leaving the scene of an accident, and those who were at fault for a previous accident when they did not have insurance.
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Liability insurance in New Hampshire
New Hampshire is the only state that does not require that all drivers carry minimum automobile insurance. However, drivers must be able to show financial responsibility if they are at fault in an auto accident. This means proving that they can pay for personal injuries and property damage they cause. The easiest way to do this is by purchasing an auto insurance policy.
The state's Motor Vehicle Financial Responsibility Law (FRL) requires insurance policies to include liability coverage in the following amounts:
- $25,000 for bodily injury to, or the death of, one person in one accident
- $50,000 for bodily injury to, or the deaths of, two or more persons in one accident
- $25,000 for property damage in one accident
- $1,000 in medical payments coverage to pay the driver's own medical bills in an accident
Liability insurance covers the driver as a named insured and all others who are named as insured under the policy. This includes the driver's spouse and other family members who live with them. Anyone driving the vehicle with the driver's permission is also covered. The policy also covers the auto listed in the driver's policy and any non-owned auto being driven by the driver or any relative living with them if there is no other insurance available for the non-owned auto.
In addition to liability coverage, auto insurance policies in New Hampshire must also include uninsured motorist coverage and medical payments insurance. Uninsured motorist coverage will pay for bodily injury damages if the driver is hurt in a collision caused by an uninsured driver or a hit-and-run driver. Medical payments insurance will pay the driver's or their passengers' accident-related medical bills for up to three years after the accident, regardless of who was at fault.
While New Hampshire does not require drivers to carry minimum auto insurance, it does require businesses to carry certain types of insurance. Commercial auto insurance covers business-owned vehicles in the state and protects against injuries and property damage in an accident, vehicle theft, and some types of damage. New Hampshire also requires workers' compensation insurance for all businesses with one or more employees. This insurance covers employee medical expenses and legal fees from employee injuries.
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Uninsured/underinsured motorist coverage
In New Hampshire, car insurance is one of several ways to demonstrate financial responsibility, but if it's purchased, the state requires both uninsured and underinsured motorist coverage to be included in every policy. This is referred to as UM/UIM coverage.
Uninsured motorist coverage, or UM coverage, protects you, your family members who live in the same household as you, and your passengers who are injured by an at-fault driver operating their vehicle without auto insurance. It may also cover injuries sustained in hit-and-run accidents.
Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, protects you if you're hit by a driver who doesn't have enough coverage to pay for the damages or injuries they caused.
The amount of uninsured motorist coverage you carry is equal to your bodily injury liability coverage. In New Hampshire, the minimum MedPay coverage required is $1,000.
If you've been involved in any accident, you should exchange information with the other driver. Record their auto insurance policy number, phone number, and license plate number. Take pictures of the accident scene and file a police report. Then, contact your auto insurance carrier and open a claim.
If you were the victim of a hit-and-run, you probably won't have much information. Call the police and file a report. Tell the officer everything you can remember about the accident. Contact your insurance carrier and open a claim.
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Collision coverage
In New Hampshire, auto insurance follows the vehicle rather than the person. This means that if you are driving a car that you do not own, the car owner's insurance will be primarily responsible for covering any damage or injuries resulting from an accident. However, it is important to note that New Hampshire is a fault-based auto insurance state, which means that the driver found at fault in an accident is liable for all resulting injuries and losses.
Collision insurance is particularly useful for vehicle owners who drive a car worth protecting, such as leased or financed vehicles, newer and more expensive vehicles, or older vehicles that still maintain good value relative to your deductible and monthly rate. If you are financing a vehicle, your lender will likely require you to have collision insurance until the loan is paid off.
When choosing collision coverage, you will need to decide on the amount of your deductible. A higher collision deductible means you will have a lower monthly premium, but you will also have to cover a larger portion of the repair costs when an accident occurs. On the other hand, a lower deductible means a higher monthly premium, but you will have lower out-of-pocket expenses in the event of an accident.
The average cost of collision coverage is about $290 per year, and it is a valuable addition to your auto insurance policy, providing peace of mind and financial protection in the event of a collision.
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Comprehensive coverage
New Hampshire is one of the few states where auto insurance is not required, but it is highly recommended. If you do not have auto insurance in New Hampshire, you are still required by law to show proof of financial responsibility if you are liable for someone else's injuries or damages. The easiest way to prove financial responsibility is by getting car insurance.
If you are financing a new car, your lender or leasing company will require you to have comprehensive coverage. It is also a good idea to add comprehensive coverage if you are not sure you could afford a new car or major repairs after a crash.
In addition to comprehensive coverage, collision coverage is another optional type of auto insurance that you can add to your policy. Collision coverage pays to repair or replace your car after a collision with another vehicle or a stationary object. If your financed car is totaled and the collision payout is not enough to pay off the balance of your loan, you may need gap insurance to make up the difference.
When deciding whether to add comprehensive and collision coverage to your auto insurance policy, consider the value of your car and the amount you are comfortable spending in the event of an accident or total loss. You should also think about whether you would be able to afford medical expenses for yourself or another party in the event of an accident that causes injuries. Balancing financial risk and the cost of your insurance policy is a personal decision based on your unique needs.
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Frequently asked questions
No, New Hampshire does not require auto insurance for all drivers. However, drivers are required to cover the costs of any bodily injury and property damage they cause in an accident.
If you don't have auto insurance and are involved in an accident, you will be required to pay for any resulting bodily injury or property damage. A lawsuit could be brought against you, and you could be mandated to pay for the damages.
If you choose to purchase auto insurance in New Hampshire, the state has set minimum requirements. These include $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, $25,000 in property damage coverage, and $1,000 in medical payments coverage.
Yes, there are some exceptional circumstances in which New Hampshire drivers may be mandated to purchase auto insurance. These include drivers with a DUI conviction, those convicted of certain driving offenses, and those who were at fault in a previous accident while uninsured.
While auto insurance is not legally required in New Hampshire, it can provide financial protection in the event of an accident. It can help cover the costs of repairs, rentals, and legal defence, saving you from significant out-of-pocket expenses.
