Jeffrey Wade
New Hampshire is one of the few states that does not require auto insurance for all drivers. However, drivers must be able to prove financial responsibility for any accidents they cause. The easiest way to do this is by purchasing auto insurance, and the state recommends drivers carry standard liability and property damage insurance.
| Characteristics | Values |
|---|---|
| Is car insurance required in New Hampshire? | No, but drivers must show proof of financial responsibility in case of an accident. |
| What is the recommended way to prove financial responsibility? | Car insurance |
| What are the minimum coverage requirements for drivers who purchase insurance? | $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage for an accident involving multiple people, $25,000 in property damage coverage, and $1,000 in medical payments coverage. |
| Are there any exceptions to the insurance requirement? | Yes, drivers with a DWI conviction, certain other offenses (e.g. leaving the scene of an accident), or those found at fault for an accident while uninsured must provide proof of insurance for a specified period. |
| What is the average cost of car insurance in New Hampshire? | $1,530 per year, slightly lower than the national average. |
| What factors affect car insurance rates in New Hampshire? | Credit score, marital status, location, vehicle type, mileage, driving record, gender, and age. |
What You'll Learn
New Hampshire auto insurance requirements
New Hampshire is one of the few states that does not require auto insurance for all drivers. However, drivers are required to show proof of financial responsibility if they are liable for someone else's injuries or damages. This can be done by purchasing car insurance.
If you choose to buy auto insurance in New Hampshire, you are required to have auto liability coverage (including bodily injury liability and property damage liability), uninsured/underinsured motorist (UM/UIM) coverage, and medical payments coverage. The minimum coverage amounts for these are as follows:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
- UM/UIM bodily injury: $25,000 per person and $50,000 per accident
- UM/UIM property damage: $25,000 per accident
- Medical payments coverage: $1,000 per accident
It is important to note that these are the minimum required coverage amounts, and purchasing higher coverage amounts may better protect you and your family financially in the event of an accident.
In addition to the above coverages, if you are leasing or financing a vehicle, your lender will likely require you to carry comprehensive and collision coverage as well. These coverages will pay to repair or replace your car regardless of who is at fault in an accident.
While New Hampshire does not require auto insurance for all drivers, there are certain groups of drivers who are required to show proof of insurance. These include drivers with a DWI conviction, those convicted of certain offenses such as leaving the scene of an accident, and drivers who have been at fault in an accident and did not have insurance at the time.
New Hampshire is an at-fault state, which means that the party responsible for an accident is liable for covering the injuries and damages of the other driver and their passengers. This further emphasizes the importance of carrying adequate auto insurance to protect yourself financially in the event of an accident.
Auto Insurance Payments: Tax Deductible?
You may want to see also
Auto insurance alternatives
New Hampshire is one of only two states that does not require car insurance. However, drivers in the state are still required to cover the costs of any bodily injuries or property damage they cause in an accident. The best way to cover these costs is to take out an auto insurance policy.
If you're looking for alternatives to auto insurance, there are a few options to consider. However, it's important to note that these alternatives may not provide the same level of protection as a traditional insurance policy. Here are some options to consider:
Self-Insurance
Self-insurance is an option for those who own over 25 vehicles, such as company fleets or rental car companies. It requires proper financial planning as you are taking on the financial responsibility yourself. You will need to demonstrate your financial stability and obtain a certificate of self-insurance to operate your vehicle legally.
A surety bond can be purchased instead of a standard car insurance policy. The bond amount varies by state, ranging from $10,000 to $85,000. With a surety bond, you are responsible for paying any accident expenses upfront, but the bond company will cover the costs up to the bond amount. However, you will need to repay the bond company over time with interest. The major disadvantage of surety bonds is the financial risk you take on as the driver.
Uninsured Motorist Fee
In the state of Virginia, you can legally drive a car without insurance by paying an uninsured motorist fee of $500 per year. However, you will still be responsible for any damages you cause in an accident.
Liability-Only Coverage
Another option is to purchase a liability-only insurance policy, which offers cheaper rates than full coverage and allows you to meet the minimum car insurance requirements.
Pay-Per-Mile Insurance
If you don't drive often, you may want to consider pay-per-mile insurance. With this type of policy, you pay a monthly base rate plus a per-mile rate for coverage.
While these alternatives may provide some financial protection, it's important to carefully consider your options and the level of risk you are comfortable with. Traditional auto insurance provides comprehensive coverage and can give you peace of mind in the event of an accident.
Combining Auto Insurance: Marriage and Money-Saving Tips
You may want to see also
Proving financial responsibility
New Hampshire is the only state that does not mandate auto insurance for all drivers. Instead, it requires drivers to show that they are able to provide sufficient funds in the case of an at-fault accident, also known as "proof of financial responsibility". This can be done in one of two ways:
Purchasing an auto insurance policy: The majority of drivers in New Hampshire comply with the Motor Vehicle Financial Responsibility Law (FRL) by buying an auto insurance policy with the minimum coverages required by the state. This includes liability coverage, uninsured/underinsured motorist (UM/UIM) coverage, and medical payments coverage. The minimum requirements for these coverages are as follows:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
- UM/UIM bodily injury: $25,000 per person and $50,000 per accident
- UM/UIM property damage: $25,000 per accident
- Medical payments coverage: $1,000 per accident
Depositing money or securities with the state treasurer: Drivers can also choose to comply with the FRL by depositing money or securities with the state treasurer. This option is outlined in the New Hampshire Revised Statutes (N.H. Rev. Stat.) § 264.21 and § 264.22.
It is important to note that while auto insurance is not required for all drivers in New Hampshire, there are certain circumstances in which a person may be required to purchase and maintain auto insurance. These circumstances include convictions for motor vehicle-related violations such as driving while intoxicated, vehicular homicide, leaving the scene of an accident, or reckless operation of a motor vehicle. The requirement to carry auto insurance in these instances typically lasts for three years and can be extended for additional years if subsequent incidents occur.
Insurance Coverage: Can They Change It?
You may want to see also
Average insurance costs
While car insurance is not mandatory in New Hampshire, drivers are required to show proof of financial responsibility in the event of an accident. The average cost of car insurance in the state varies depending on factors such as age, gender, location, driving record, and credit score.
The average cost of car insurance in New Hampshire is $1,618 for full coverage and $434 for minimum coverage annually. On a monthly basis, full coverage costs around $61, while minimum coverage costs approximately $31. These rates are lower than the national average, making car insurance in New Hampshire relatively affordable.
Cost Breakdown by Company
The cost of car insurance in New Hampshire varies across different companies. For instance, Hanover offers the cheapest full coverage at $479 per year, while Allstate has the highest average premium at $1,086. It is essential to compare quotes from multiple providers to find the most affordable option.
Cost Breakdown by Coverage Level
The type of coverage selected also impacts the cost of car insurance in New Hampshire. Minimum coverage with state-mandated requirements costs around $31 per month, while full coverage with a $1,000 deductible averages $61 per month. Opting for higher deductibles can help reduce the premium.
Cost Breakdown by City
Location is another factor that affects car insurance rates. For example, in Manchester, the average annual cost of full coverage is $1,391, significantly higher than the state average. Urban areas tend to have higher premiums due to congested streets and a higher likelihood of accidents.
Cost Breakdown by Age and Gender
Age and gender are significant factors in determining car insurance rates in New Hampshire. Younger drivers, especially those between 22 and 29, pay the highest premiums, with an average annual cost of $1,221. As drivers get older, rates tend to decrease, with middle-aged drivers (30-59) paying around $729 per year. Teenagers under 18 typically cannot obtain individual policies and must be added to a family policy, with rates varying based on gender.
Cost Breakdown by Driving Record
A clean driving record can help keep insurance rates low. Traffic violations and accidents will increase premiums. For example, a driver with a speeding ticket can expect to pay an average of $917 per year, while those with an at-fault accident will pay around $1,133. A DWI conviction will result in even higher rates, averaging $1,532 annually.
Cost Breakdown by Credit Score
Credit score is another critical factor considered by insurance companies in New Hampshire. A good credit score can lead to lower premiums, while a poor score (below 580) will result in higher costs. The difference in monthly premiums between a good and poor credit score can be as much as $40.
Full Coverage Auto Insurance for Teenagers: How Much Does It Cost?
You may want to see also
How to get cheap auto insurance
Although car insurance is not a legal requirement in New Hampshire, it is recommended that drivers get insurance to cover their liability in the event of an accident. The state requires drivers to show proof of financial responsibility if they are liable for someone else's injuries or damages.
- Compare quotes from multiple insurance companies.
- Maximize discounts—contact your insurance agent to see which ones you may be eligible for.
- Choose a higher deductible.
- Drive safely and maintain a clean driving record.
- Review your coverage regularly—check your policy every year and when you experience major life changes.
- Factor in insurance costs when buying a new vehicle.
- Improve your credit score.
- Explore usage-based insurance—join telematics programs that track your driving habits and adjust your premiums accordingly.
According to a 2024 study by U.S. News, the cheapest car insurance in New Hampshire is offered by USAA, with an average annual premium of $738. However, USAA policies are only available to military personnel and their families. For everyone else, Auto-Owners Insurance offers the lowest rates, with an average annual premium of $758.
Allstate Auto Insurance: Is It Worth the Hype?
You may want to see also
Frequently asked questions
No, auto insurance is not mandatory in New Hampshire. However, drivers are required to show proof of financial responsibility in the event of an accident, and the easiest way to do this is by purchasing auto insurance.
If you choose to purchase auto insurance in New Hampshire, the minimum requirements are:
- $25,000 in bodily injury liability coverage per person and $50,000 per accident.
- $25,000 in property damage liability coverage per accident.
- $1,000 in medical payments coverage per accident.
- Uninsured motorist coverage with the same limits as your liability policy.
If you are found at fault for a crash and do not have insurance, you will be required to pay out-of-pocket for all injuries and damages incurred.
No, New Hampshire is an at-fault state. This means the person found responsible for the accident is liable for all injuries and damages.
You can use a digital insurance card, the insurance card mailed to you, or a paper printout of your insurance card.
