Auto Insurance Policies: State Law Or Company Rules?

Unlike most other states, New Hampshire does not require drivers to have car insurance. However, drivers are still financially responsible for any damage they cause in an accident. This means that if you cause an accident and are unable to pay for the resulting damage, you could be sued for damages. In such cases, auto insurance can provide financial protection. So, while an auto insurance policy is not mandatory in New Hampshire, it is highly recommended to have one that complies with the state's Motor Vehicle Financial Responsibility Law (FRL). This raises the question: Can an auto insurance policy supersede state law in New Hampshire?

New Hampshire's Motor Vehicle Financial Responsibility Law (FRL)

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. This is called "proof of financial responsibility". The Motor Vehicle Financial Responsibility Law (FRL) requires the owner of a registered motor vehicle to prove that they can pay for personal injuries and property damage they cause in an accident. This can be done by depositing money or securities with the state treasurer, but most drivers comply with the FRL by buying an insurance policy.

The FRL can be found in Chapter 264 of the New Hampshire Revised Statutes. The law requires that every auto insurance policy issued in New Hampshire must include uninsured motorist coverage with bodily injury limits of at least $25,000 per person and $50,000 per accident. If a driver chooses liability limits higher than those required by state law, the uninsured motorist limits must equal the liability amounts chosen. In addition to liability and uninsured motorist coverages, a New Hampshire auto policy must also include Medical Payments (MedPay) insurance with a per-person limit of at least $1,000.

Auto insurance may be required as a result of a conviction, accident, or administrative action. For example, a person may be required to purchase and maintain auto insurance for a period of time if they are convicted of certain motor vehicle-related violations, including driving while intoxicated, vehicular homicide, leaving the scene of an accident, or reckless operation of a motor vehicle. The DMV may also suspend a driver's license and vehicle registration if they are convicted of driving under the influence of intoxicating liquor or narcotic drugs, failing to stop and report when involved in an accident, homicide or assault arising out of driving a motor vehicle, driving at an excessive rate of speed, or violating any other state law relative to vehicles. In these cases, the requirement to carry auto insurance remains in place for three years from the date of the accident, final conviction, or administrative action.

It is important to note that New Hampshire has a traditional fault-based auto insurance system, and the deadline for filing a car accident lawsuit is within three years of the accident, which can usually be found in the statute of limitations.

Auto insurance policy requirements

In New Hampshire, auto insurance is not mandatory unless a 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 they are at fault in an accident. This can be done by purchasing an auto insurance policy or depositing money or securities with the state treasurer.

The state's Motor Vehicle Financial Responsibility Law (FRL) requires drivers to prove they can pay for personal injuries and property damage they cause in an accident. The FRL sets the minimum coverages for auto insurance policies, including bodily injury liability, property damage liability, medical payments (MedPay) insurance, and uninsured motorist (UM) insurance.

Bodily injury liability coverage must be at least $25,000 per person and $50,000 per accident. This ensures that if a driver is responsible for an accident, the injured party can claim up to $25,000 in bodily injury damages. If the driver elects higher liability limits, the uninsured motorist (UM) coverage limits must match.

Property damage liability coverage is also required, with a minimum limit of $25,000. This covers damage to another person's property caused by the policyholder in an accident. Additionally, MedPay insurance is mandated with a per-person limit of at least $1,000. MedPay covers accident-related medical expenses for the policyholder and their passengers, regardless of fault, for up to three years after the accident.

While auto insurance is not mandatory for all drivers in New Hampshire, it is recommended as it provides financial protection in the event of an accident. The state's FRL sets the minimum requirements for auto insurance policies, ensuring that drivers can cover the costs of personal injuries and property damage. By understanding and complying with these requirements, drivers can protect themselves and others in the event of an accident.

The risks of not having auto insurance in NH

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 offences. However, there are still risks associated with not having auto insurance in the state. Firstly, if you are required to have insurance and are caught without it, you will face legal consequences. Your driving privileges will be revoked or suspended, and you will have to pay a fee to get them reinstated. This is because, in the event of an accident, you will be expected to pay for any damage caused, which can be costly.

Another risk of not having auto insurance in New Hampshire is the potential financial burden you may face if you are involved in an accident. While the state does not require drivers to have insurance, it does require them to prove financial responsibility. This means that if you are in an accident, you will be responsible for covering the cost of any property damage or injuries to other parties. The state's financial responsibility requirement is a total of $100,000 in liability coverage, which most people cannot afford to pay out of pocket.

Additionally, if you are caught driving without insurance in New Hampshire, you may be required to file an SR-22 form with the Division of Motor Vehicles (DMV). This form acts as proof that you have purchased car insurance and is typically required for a period of three years. During this time, you must maintain a clean driving record, or else face additional consequences. Finding insurance after a lapse in coverage can also be challenging, as insurance companies will consider you a high-risk driver.

Furthermore, not having auto insurance in New Hampshire can lead to increased costs in the long run. Insurance companies typically offer additional coverages, such as collision, comprehensive, and medical payments coverage, which can provide financial protection in the event of an accident. Without these coverages, you may be responsible for paying for repairs to your vehicle, as well as any medical expenses for yourself and your passengers.

In conclusion, while New Hampshire does not require drivers to carry auto insurance, there are significant risks associated with not having it. These risks include legal consequences, financial burdens, and increased costs. Therefore, it is essential to carefully consider your options and the potential consequences before deciding to drive without insurance in New Hampshire.

How to comply with the law

In New Hampshire, car insurance is not mandatory, except for certain drivers such as those with DWI convictions. However, drivers are still liable for any damage they cause in an at-fault collision and must prove they can pay for these damages. This is called "proof of financial responsibility".

There are different ways to comply with the law and prove financial responsibility. One way is to deposit money or securities with the state treasurer. The other, more common way is to purchase an auto insurance policy that meets the state's minimum coverage requirements.

The Motor Vehicle Financial Responsibility Law (FRL) outlines the minimum coverage that auto insurance policies in New Hampshire must include. This includes bodily injury coverage of at least $25,000 per person and $50,000 per accident, as well as property damage coverage of at least $25,000 per accident. Uninsured motorist coverage, which covers bodily injury damages caused by an uninsured or hit-and-run driver, is also required. Medical payments (MedPay) insurance, which covers accident-related medical bills for you or your passengers regardless of who is at fault, is another mandatory component of auto insurance policies in New Hampshire, with a per-person limit of at least $1,000.

It is important to note that the state's minimum coverage requirements may not be sufficient for all drivers. If you cause extensive damage or injuries in an accident, the costs could exceed your policy limits, leaving you financially responsible for the remaining balance. Therefore, it may be advisable to purchase additional coverage or increase your current limits to ensure you are fully protected.

To find the best auto insurance policy for your needs, it is recommended to compare personalized quotes from several companies and consider any discounts you may be eligible for.

The average annual cost of car insurance in NH

The average annual cost of car insurance in New Hampshire varies depending on the type of coverage and the driver's age, gender, driving record, credit score, and location.

For full coverage, the average annual cost is around $773 to $1,843. The higher cost is $523 more than the national average, while the lower cost is $905 less. The cheapest full-coverage insurance is offered by Hanover at $479 annually.

For minimum coverage, the average annual cost is around $389 to $495. This is $206 to $529 less than the national average. The cheapest minimum-coverage insurance is offered by Hanover at $133 annually.

Young drivers in New Hampshire typically pay higher insurance costs due to a higher number of accidents. Drivers aged 18 to 25 pay an average of $1,129 annually on a family policy, while an individual policy would cost 34% more. An 18-year-old woman can be added to a family policy for an average of $1,267, while an individual policy would cost $2,606. An 18-year-old man in New Hampshire pays about $2,901 for an individual policy, but joining a family policy reduces the cost to $1,400.

Liability-only insurance with coverage limits of 50/100/50 costs $416 per year. Non-owner state minimum liability coverage, suitable for those who frequently rent cars, costs $318 annually.

It is important to note that insurance rates can vary significantly based on individual factors, and it is recommended to shop around and compare quotes from multiple companies to find the most suitable coverage at the best price.

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