Average Cost of Car Insurance in New Hampshire

Insurers consider several factors when determining a policyholder’s premium. Some factors are characteristics of the driver, and some are completely unrelated. Let’s take a look at how insurers in the Granite State determine premiums, why a car insurance policy in New Hampshire is so much cheaper than the national average, and how you can lower your premiums if they’re more expensive than the state’s average rate. 

On average, New Hampshire car insurance costs about $1,210 annually for a full coverage policy or about $600 annually for a minimum coverage one. Insurers typically offer base rates around the state average for policyholders with a clean driving record or who aren’t considered high-risk drivers. A few key characteristics about a policyholder may place their base rates outside the ballpark of the state average. 

Premiums differ based on the state, policy, and driver. While you may pay a premium that aligns with the state average, your neighbor may pay far more or less, depending on a few crucial factors. Insurers often look at unique characteristics like one’s driving record, insurance history, age, ZIP code, and gender, among several other factors, when determining premiums. 

Insurers use characteristics that will help them determine if a driver is at a higher-than-average risk of filing a claim. Drivers may be considered high-risk if they’ve had an at-fault accident, driven illegally without insurance, an SR-22 on file, or failed to pay their premiums on time. Some drivers may also be considered high-risk for inherent traits, like being a teenage boy. According to the CDC, adolescent boys are the highest-risk group for at-fault accidents. Thus, possessing any of these traits may cause an insurer to raise rates above the state average. 

Before binding a policy, you must consider what you value more when it comes to your insurance: cost or coverage. Those who value coverage over cost will often bind a full coverage policy from one of the top insurers in the state that offers plenty of optional coverage types. Those who value cost over coverage may, instead, bind a minimum coverage policy from an insurer with the lowest starting rates in the state. Those who value cost and coverage equally may bind a full coverage policy from an insurer that offers low base rates and plenty of discounts they can stack to lower their premiums. 

It can be tough for some to make room in a budget for an insurance premium, especially since many drivers in New Hampshire aren’t legally required to have a policy at all. However, carrying a full coverage policy will help ensure your safety behind the wheel and keep your savings intact if you budget properly for your premium. Budgeting for an annual premium is far easier than for a catastrophic at-fault accident. 

In New Hampshire, car insurance rates are some of the lowest in the country. The average full coverage policy in the state costs about $1,210 annually for a driver with a good driving record. A minimum coverage policy contains about half the coverage, so the average cost of such a policy is about $600 annually. While New Hampshirites aren’t legally required to carry auto insurance policies, many opt for a full coverage policy for the peace of mind it provides.

While many residents of the Granite State aren’t required to have an auto insurance policy, some may need one. Drivers can opt out of the insurance system if they can prove they have enough savings to maintain financial responsibility in an at-fault accident; otherwise, they may legally need a policy. 

The minimum coverage requirements in New Hampshire for those who need an auto insurance policy are $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $25,000 in property damage liability per accident (25/50/25 liability coverage), $25,000 in uninsured or underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and $1,000 in medical payments coverage or MedPay. Those who lease or finance their vehicles may be legally required to carry collision and comprehensive coverages.

Since New Hampshire isn’t a no-fault state but a tort state, drivers aren’t required to carry high limits of expensive no-fault coverages like personal injury protection (PIP) or MedPay. Since drivers don’t have to carry a high limit of no-fault coverage, the average rates in the state stay relatively low. In fact, New Hampshire has some of the lowest auto insurance rates in the country.

Many factors go into figuring the average auto insurance rates in a state. Generally, average rates depend on population size, population density, and the population of uninsured drivers. If any of these factors is higher than the national average, the average rates in a state will be higher. Since New Hampshire is a small state with a low population, population density, and number of uninsured drivers, the average rates in the state stay below the national average. 

The average car insurance cost in New Hampshire is about $1,210 annually for a full coverage premium or about $600 annually for a minimum coverage one. It’s important to note, though, that premiums aren’t the only thing a policyholder will pay when it comes to auto insurance. Policyholders must also pay their deductible out of pocket should they file a claim. 

Generally, policyholders can choose to have a low deductible and high premiums or a high deductible and low premiums. Neither choice is better; it’s just a matter of whether you prefer to pay more annually or up front when filing a claim. 

If you’re on the hunt for the average auto insurance in New Hampshire, the best way to find a policy that aligns with your values is to get and compare quotes online. By getting and comparing quotes, you can see all the rates you’re eligible for and make the most informed decision for your lifestyle and budget.

Lucky for you, quotes are our specialty here at Clovered. We even have a free quoting tool you can use to access your unique quotes in minutes. If you prefer to speak with a professional about your quotes or the average rates in the state, you can speak with one of our licensed agents at 833-255-4117 or [email protected].