New Hampshire Auto Insurance Laws & Requirements

While New Hampshire is one of two states that doesn’t require auto insurance, drivers must maintain enough savings to cover any potential expenses they may owe a victim in an at-fault accident. Let’s take a look at how the minimum coverage limits are enforced, who’s required to have coverage despite the absence of a mandatory minimum, and other frequently asked questions about car insurance policies in New Hampshire.

In New Hampshire, auto insurance isn’t required by law like in most states. Instead, drivers must prove financial responsibility in the event of an at-fault accident, or, in other words, have enough money saved to cover a victim’s expenses should they be considered at-fault in an accident. While New Hampshirites aren’t technically required to carry auto insurance policies, maintaining a policy is generally more financially responsible than relying on one’s savings.

While most drivers in the state aren’t required to carry an auto insurance policy, some are. Drivers who’ve had a serious traffic violation may be legally required to carry a policy for a few years following the incident. Drivers who are required to have an auto insurance policy must have at least $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 comprehensive and collision coverages as part of their legally binding agreement.

New Hampshirites who require auto insurance and maintain the minimum coverage limits are considered adequately insured. Those required to carry auto insurance policies who fail to do so are considered uninsured and may face serious legal penalties. Driving without insurance in The Granite State can lead to fines, fees, license and registration suspension, SR-22 filing, and a significant increase in premium costs for several years following the incident.

New Hampshire car accident laws treat each accident on a tort or “at-fault” basis. That means at least one driver must be considered at fault each time drivers get into an accident. Tort states typically use one of two tort principles when it comes to accidents: comparative or contributory negligence. In contributory negligence states, drivers who are ultimately the victim of an accident but are found partially at fault are barred from collecting damages from the other driver.

In comparative negligence states like New Hampshire, drivers can collect damages from each other according to their percentage of fault in an accident. There are more specific laws in each state when it comes to comparative negligence. 

For example, The Granite State is a modified comparative negligence state. This means drivers over 50% at fault in an accident cannot collect damages from any other driver. Drivers who are less than 50% at fault can collect damages minus the percentage they’re at fault. 

Even though drivers in The Granite State aren’t required to have auto insurance, those who take to the road uninsured are on the hook for every expense in an at-fault accident, including their own. Those who maintain auto insurance policies that meet the state’s minimum limits but don’t exceed them may also find themselves quite a chunk of change in the event of an at-fault accident. 

While liability coverage will cover the victim’s expenses up to the coverage limits and UMBI/UIMBI will cover the policyholder’s expenses in an accident caused by an uninsured driver, the policyholder will only have $1,000 in MedPay to use for their bills and will be on the hook for the remainder of their expenses. 

Although New Hampshire isn’t a no-fault state, drivers are still required to carry a first-party medical benefit, or FPMB, to cover their expenses in the event of an accident, regardless of who’s at fault. No-fault states typically mandate such coverage for all drivers since they don’t rely on fault or liability coverage for recovering benefits following an accident. 

While maintaining a minimum coverage policy or going without auto insurance are both legal options in The Granite State, neither option protects your savings as well as a full coverage policy. A full coverage policy equipped with higher limits of liability coverage, uninsured and underinsured motorist coverage, and MedPay, as well as additional coverages like collision coverage, comprehensive coverage, and gap coverage, will help ensure your safety on the road. 

New Hampshire requires auto insurance for drivers who have previously committed a serious traffic violation but not for drivers with clean driving records. Those who need auto insurance must have policies with at least 25/50/25 liability coverage, 25/50 UMBI/UIMBI, and $1,000 in MedPay. While residents aren’t required to carry car insurance if they can prove they have enough savings to take financial responsibility in the event of an at-fault accident, it may still be a good idea for drivers to at least carry a minimum coverage policy with enough protection for an at-fault accident or an accident caused by an uninsured driver. 

It’s generally a financially sound decision to opt for an insurance policy rather than not. The average cost of a full coverage premium in The Granite State is about $1,210 annually, and it’s one of the cheapest states in America for auto insurance. Some of the top insurers in the state offer policies with base rates as low as $800 annually, making it almost a no-brainer for residents to carry auto insurance. 

New Hampshire state minimum auto insurance limits only require drivers with a poor driving record to carry insurance coverage because they’ve proven they’re a liability on the road without coverage. Drivers with clean records or who don’t present as a liability on the road aren’t required to carry coverage for a few reasons. 

New Hampshire doesn’t require car insurance coverage because it’s not a very populated state. With such a small population, there are few drivers on the road, meaning drivers are unlikely to get into accidents.  

New Hampshire insurance laws only mandate coverage for those who have previously committed serious traffic violations, proving themselves to be a liability on the road. Drivers who need car insurance must have at least 25/50/25 liability coverage, 25/50 UMBI/UIMBI, and $1,000 in MedPay. Those who lease or finance their vehicles will likely require a full coverage policy with collision and comprehensive coverages added. 

Those who require auto insurance but don’t have an active or adequate policy are considered illegally uninsured and can face serious legal penalties. Illegally uninsured drivers may face consequences like fines, fees, or license and registration suspension. Illegally uninsured drivers may also require an SR-22 to be filed on their behalf for several years until they can prove they aren’t a liability on the road. Having an SR-22 on one’s record can nearly double or triple one’s insurance premiums, making it nearly impossible to bind the cheapest policy in the state.

Those who require auto insurance in the state must have minimum limits of MedPay, UMBI/UIMBI, bodily injury liability, and property damage liability in New Hampshire. While most drivers aren’t required to have auto insurance policies, drivers who have proven themselves to be a liability on the road may require a policy that meets the state’s minimum limits for several years.

Residents with clean driving records aren’t required to have auto insurance policies but are advised to have them anyway. A car insurance policy can be the difference between a minor inconvenience and financial ruin, depending on the severity of an accident. Here at Clovered, we tend to err on the side of caution and always recommend a full coverage policy over any other option. If you’re nervous about making room in your budget for premiums, it can be pretty easy to find an insurer with lower-than-average base rates and plenty of opportunities for discounts if you know where to look. Many insurers offer discounts that can add up to significant savings for minimal effort, like usage-based discounts or good driving programs. 

Drivers with traffic violations are required to maintain coverages like UMBI/UIMBI, MedPay, and bodily injury liability in New Hampshire. Drivers with clean driving records aren’t legally required to have any insurance. Those who must maintain coverage but fail to do so are considered illegally uninsured and may face severe legal penalties like fines, fees, or license and registration suspension.

Whether searching for the most minimal insurance policy, the cheapest coverage options, or the most robust personal injury coverage in New Hampshire, the best way to find a policy that meets your needs is to get and compare quotes online. By getting and comparing quotes online, drivers can tailor their policies to their lifestyles so they only pay for what they’ll use.

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 chat with a professional about your quotes, you can contact one of our licensed agents at 833-255-4117 or [email protected].