New Hampshire Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of New Hampshire?

• The state of New Hampshire is like no other when it comes to auto insurance. While the state of New Hampshire recommends that all motorists carry at least the minimum liability insurance coverage, New Hampshire law, in most cases, does not require it.
• In the state of Hew Hampshire, certain driver’s are required to carry minimum liability insurance. If you have been convicted of a DWI or have accumulated a certain number of DMV Demerit Points, these violations will activate a minimum auto liability insurance requirement. First offense DWI convictions require liability insurance for three years and second offense DWI convictions require liability insurance for five years.
• The recommended minimum auto liability coverages are $25,000/$50,000 bodily injury liability, $25,000 property damage liability, and $25,000/$50,000 uninsured/underinsured motorist bodily injury.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you are required to buy automobile insurance in New Hampshire, your policy must include minimum liability coverage of:

$25,000/$50,000 bodily injury liability,
$25,000 property damage liability,
and
$25,000/$50,000 uninsured/underinsured motorist bodily injury

What are the Rental Car Insurance Requirements?

If you are driving a rental car in the state of New Hampshire, the rental car company may or may not require auto insurance. If the rental car company does require insurance, the options may include a loss damage waiver (LDW), liability insurance at an additional cost of $7-$14 per day, personal accident insurance, and/or personal effects coverage. Again, what might be required will vary depending on the car rental company. If you are required to carry auto insurance in the state of New Hampshire, and you rent a car, you must make sure that your auto insurance or credit card covers car rentals. If not, you must purchase minimum liability coverage (or more) from the rental car company.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of New Hampshire. The state does, however, have recommended minimum coverage amounts if you decide to purchase auto insurance. if you are required to purchase auto insurance, these amounts are mandatory. The recommended minimum uninsured/underinsured motorist bodily injury coverage is $25,000/$50,000.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

If you carry insurance in the state of New Hampshire, auto insurance companies may exclude certain household members from coverage. You also have the option to exclude members of the household as well. If members of your household have access to or will be driving your vehicle, you should not exclude them from your policy. Any household exclusion would free the insurance company from the responsibility of paying a claim that includes an excluded member of your household.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

Because New Hampshire does not require its citizens to carry auto insurance, there are no penalties for allowing your insurance lapse. However, it is important to keep in mind that if an accident should occur during a lapse, the auto insurance company has the legal right to reject your claim. If you are required to purchase auto insurance because you have been convicted of a DWI or have accumulated a certain number of DMV Demerit Points, allowing your insurance to lapse will result in a suspended license.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of New Hampshire, Personal Credit History may be used to assess risk or make offers for products. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. New Hampshire auto insurance companies do not use credit history alone to figure rates. They also consider age, gender, where you live, car make and model, how much you drive, and prior insurance coverage.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of New Hampshire follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages whether they carry insurance or not. If the person has auto insurance, damages are usually handled through the at fault person's insurance company. Because New Hampshire is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, New Hampshire resident’s average insurance premium was approximately $793, the 21st most expensive in the nation. This was up 0.2 % from the previous year. The national average was $817.

Sources

Insurance Information Institute 

New Hampshire Insurance Department