by Geoff Stanton | Aug 29, 2024

Do You Need Auto Insurance in NH? 5 Crucial Facts in 2024

Do you need auto insurance in NH? The short answer is no, New Hampshire doesn’t mandate auto insurance like most states. However, you must prove financial responsibility to cover any damages or injuries if you’re at fault in an accident. Here’s what that means for you:

No mandatory insurance: You’re not required to have auto insurance, but you must be able to cover costs if you cause an accident.
Financial responsibility: This can be shown by depositing money or securities with the state treasurer or by purchasing insurance.
Minimum coverages: If you choose to buy insurance, you’ll need at least $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage.

New Hampshire’s approach to auto insurance is unique. Unlike most states, it accepts a “Live Free or Die” motto by not mandating auto insurance. But don’t be fooled—drivers still need to demonstrate they can handle financial responsibilities in case of an accident. This is known as the Motor Vehicle Financial Responsibility Law (FRL), found at Chapter 264 of the New Hampshire Revised Statutes.

Before we dive deeper, I’m Geoff Stanton, President at Stanton Insurance Agency. With over two decades of experience in the insurance industry and a lifelong resident of New Hampshire, I specialize in helping individuals understand and steer the state’s unique auto insurance laws.

New Hampshire’s Unique Auto Insurance Laws

New Hampshire’s approach to auto insurance is unique. Unlike most states, it embraces the “Live Free or Die” motto by not mandating auto insurance. But don’t be fooled—drivers still need to demonstrate they can handle financial responsibilities in case of an accident. This is known as the Motor Vehicle Financial Responsibility Law (FRL), found at Chapter 264 of the New Hampshire Revised Statutes.

Financial Responsibility Requirements

In New Hampshire, you don’t have to buy auto insurance, but you must prove you can pay for damages if you cause an accident. This is called “proof of financial responsibility.”

How can you prove financial responsibility?

Deposit Money or Securities: You can deposit money or securities with the state treasurer.
Buy Auto Insurance: The simplest way is to buy an auto insurance policy with at least the following coverages:
Bodily Injury Coverage: $25,000 per person and $50,000 per accident.
Property Damage Coverage: $25,000 per accident.
Uninsured Motorist Coverage: This must also be included in your policy.

Exceptions to the Rule

While most drivers in New Hampshire can choose whether or not to buy auto insurance, there are exceptions. Certain drivers must show proof of insurance:

DWI Convictions: If you’ve been convicted of driving while intoxicated (DWI), you must provide proof of insurance for three years after your conviction. For repeat offenses, this period can be longer.
Reckless Operation and Other Offenses: If you’ve been convicted of specific offenses like leaving the scene of an accident or a second conviction for reckless driving, you must show proof of insurance for a set period.
At-Fault Accidents Without Insurance: If you were at fault in an accident and didn’t have insurance at the time, you must provide proof of insurance for three years after the crash.

If you believe you no longer need to show proof of insurance, you can contact the state’s Bureau of Financial Responsibility to request a review of your record.

No mandatory insurance: You’re not required to have auto insurance, but you must be able to cover costs if you cause an accident.
Financial responsibility: This can be shown by depositing money or securities with the state treasurer or by purchasing insurance.
Minimum coverages: If you choose to buy insurance, you’ll need at least $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage.

Benefits of Carrying Auto Insurance

Even though New Hampshire doesn’t require auto insurance, there are several compelling reasons to carry it:

1. Protection Against Lawsuits: If you cause an accident, you could be sued for damages. Auto insurance can cover legal fees and settlements, protecting you from financial ruin.

2. Coverage for Damages: Your liability insurance will pay for damages you cause to others. This includes medical bills, property damage, and other costs up to your policy limits. Without insurance, you’d have to pay these expenses out of pocket.

3. Peace of Mind: Knowing you’re covered in case of an accident can give you peace of mind. You won’t have to worry about how you’ll pay for damages or injuries.

4. Recommended by the DMV: The New Hampshire Department of Safety strongly urges all vehicle owners to carry standard liability and property damage insurance. This recommendation underscores the importance of being financially prepared for accidents.

Consequences of Driving Without Insurance

While you may not need auto insurance in New Hampshire, driving without it carries significant risks:

1. License Suspension: If you’re involved in an accident and can’t prove financial responsibility, your driver’s license could be suspended. This means you won’t be able to legally drive until you meet the state’s requirements.

2. Vehicle Registration Suspension: Your vehicle registration could also be suspended, making it illegal to operate your car. This can be a major inconvenience and disrupt your daily life.

3. SR-22 Form: If your license is suspended, you may need to file an SR-22 form to reinstate your driving privileges. This form is a certificate of financial responsibility and often leads to higher insurance premiums.

4. Financial Risks: Without insurance, you’ll be personally responsible for paying all damages and medical costs if you’re at fault in an accident. This can be financially devastating, especially if the accident results in serious injuries or significant property damage.

In summary, while New Hampshire’s unique laws give you the option to forgo auto insurance, the risks and potential consequences make it a wise choice to carry coverage. It ensures you’re protected financially and legally, giving you peace of mind on the road.

Comparing New Hampshire to Other States

Virginia’s Insurance Requirements

Virginia is another state with unique auto insurance laws, similar to New Hampshire. However, Virginia’s approach includes an Uninsured Motor Vehicle (UMV) fee. Here’s how it works:

UMV Fee: Drivers in Virginia can legally drive without insurance by paying a $500 UMV fee when registering their vehicle. This fee doesn’t provide any coverage; it merely allows the driver to operate the vehicle legally.
Liability Coverage: If drivers choose to purchase insurance, they must meet minimum liability coverage limits. These limits are $30,000 for bodily injury per person, $60,000 per accident, and $20,000 for property damage for policies effective through 2024. Starting in 2025, these limits increase to $50,000, $100,000, and $25,000 respectively.
Uninsured Motorist Insurance: Virginia also requires drivers with insurance to carry uninsured motorist coverage.
SR-22 Form: If an uninsured driver is caught without having paid the UMV fee, their registration and driving privileges will be suspended. To reinstate these, they must pay a $600 statutory fee and file an SR-22 form for three years.

Other States with Minimal Insurance Requirements

While New Hampshire and Virginia have unique approaches, other states also have minimal insurance requirements. Let’s take a look at how they compare:

Florida

Bodily Injury Liability: Unlike New Hampshire, Florida requires bodily injury liability coverage. Drivers must have at least $10,000 per person and $20,000 per accident.
No-Fault State: Florida follows a no-fault insurance system, meaning each driver’s insurance covers their own injuries regardless of fault. This includes Personal Injury Protection (PIP) with a minimum of $10,000.

New Jersey

Basic Policy Option: New Jersey offers a basic policy option that includes minimal coverage. This policy includes $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage.
Standard Policy: The standard policy offers higher limits and additional coverages, such as uninsured motorist coverage and comprehensive and collision coverage.

State Comparisons

Comparing these states highlights the diversity in auto insurance laws across the U.S.:

New Hampshire: No mandatory insurance, but financial responsibility is required.
Virginia: Option to pay a UMV fee instead of getting insurance, but strict penalties for non-compliance.
Florida: Requires bodily injury liability and follows a no-fault system.
New Jersey: Offers basic and standard policy options, with varying coverage levels.

Each state’s approach reflects its unique regulatory philosophy and risk management strategy. Understanding these differences can help drivers make informed decisions and ensure they meet their state’s requirements.

Next, let’s explore what happens after an accident in New Hampshire and the legal and financial consequences involved.

What Happens After an Accident in New Hampshire?

Legal and Financial Consequences

New Hampshire operates under a traditional fault-based auto insurance system. This means that if you’re in an accident, the driver who is at fault is responsible for covering the damages. Here’s what you need to know:

Financial Responsibility: If you cause an accident, you’re legally required to cover the costs of bodily injury and property damage. This is why many drivers opt for auto insurance to meet these financial responsibilities.
Proof of Negligence: To claim damages, the injured party must prove that the other driver was negligent. This involves showing that the driver failed to exercise reasonable care, which led to the accident and resulting injuries.
Legal Consequences: If you’re found at fault and don’t have insurance, you could face severe financial and legal consequences. You might be sued for damages, which can include medical expenses, property damage, loss of income, and even pain and suffering.
Loss of Driving Privileges: Failing to cover the required costs can lead to the suspension of your driver’s license and vehicle registration. You may also need to file an SR-22 form to reinstate your driving privileges, proving that you have the minimum required insurance.

Out-of-State Accidents

Accidents can happen anywhere, and if you’re involved in one outside New Hampshire, the consequences can be complex:

Reciprocal Information: States often share information about driving records and insurance status. If you’re uninsured and at fault in another state, that state’s DMV will likely communicate with New Hampshire’s DMV.
Uninsured Driver Consequences: If you’re at fault in an out-of-state accident and uninsured, the other party’s insurance may cover the damages and then seek reimbursement from you. This can result in legal actions or wage garnishments to recover the costs.
Legal Actions: Just like in-state accidents, you could face lawsuits for damages. The injured party will need to prove your negligence, but if successful, you could be liable for significant financial compensation.

Understanding these legal and financial implications is crucial. It emphasizes the importance of having adequate coverage to protect yourself and others on the road.

Next, let’s address some frequently asked questions about auto insurance in New Hampshire.

Frequently Asked Questions about Auto Insurance in New Hampshire

Why Doesn’t New Hampshire Require Auto Insurance?

New Hampshire’s unique approach to auto insurance is deeply rooted in its “Live Free or Die” motto. Unlike most states, New Hampshire doesn’t mandate auto insurance for all drivers. Instead, it requires proof of financial responsibility. This means you must show you can cover costs for bodily injury and property damage if you cause an accident.

For the majority of drivers, the easiest way to meet this requirement is by purchasing auto insurance. However, the state offers alternatives like depositing money or securities with the state treasurer. N.H. Rev. Stat. § 264.22 (2024).

What Happens if You Get in an Accident Without Insurance in New Hampshire?

If you’re involved in an accident and don’t have insurance, several consequences can follow:

License Suspension: Your driver’s license and vehicle registration can be suspended if you can’t cover the accident costs. To reinstate your driving privileges, you may need to file an SR-22 form, which proves you have the required insurance. N.H. Rev. Stat. § 264:20 (2024).
Financial Responsibility: You’ll be held personally responsible for all damages. This includes medical expenses, property damage, and possibly even pain and suffering.
Legal Consequences: If you can’t pay, you may face lawsuits. The injured party can sue you for damages, leading to potential wage garnishments or other financial penalties.

Is New Hampshire a No-Fault State?

No, New Hampshire is not a no-fault state; it operates under a traditional fault-based auto insurance system. Here’s what that means:

Liability: The driver who is at fault in an accident is responsible for covering the damages. If you’re at fault, you need to compensate the injured party for their losses.
Proof of Negligence: To claim damages, the injured party must prove that the other driver was negligent. This involves showing that the driver failed to exercise reasonable care, which led to the accident and resulting injuries.
Compensation: If you’re found liable, you could be responsible for covering medical expenses, property damage, and other related costs. Having auto insurance can help protect you from these financial burdens.

Understanding these aspects of New Hampshire’s auto insurance laws can help you make informed decisions and ensure you’re adequately protected on the road. For more information, consider contacting the Stanton Insurance Agency.

Conclusion

In summary, New Hampshire’s unique stance on auto insurance reflects its “Live Free or Die” motto. Unlike most states, New Hampshire doesn’t mandate auto insurance for all drivers. Instead, it requires proof of financial responsibility, meaning you must show you can cover costs for bodily injury and property damage if you cause an accident.

Understanding these laws is crucial. If you’re involved in an accident without insurance, you could face severe consequences, including license suspension, financial liability, and legal repercussions. New Hampshire operates under a fault-based system, so the at-fault driver is responsible for covering all damages.

While auto insurance isn’t mandatory for all, carrying it offers significant benefits. It protects you from lawsuits, covers damages, and provides peace of mind. The New Hampshire DMV strongly recommends having insurance to meet your financial responsibility.

At Stanton Insurance Agency, we are committed to providing trusted protection for your most valuable assets. Whether you need auto, home, personal, or business insurance, we are here to help you steer your options and find the best coverage for your needs.

For more information and to get started with a personalized quote, visit our car insurance page.

Understanding New Hampshire’s auto insurance laws ensures you’re adequately protected on the road. Don’t wait until it’s too late—ensure you have the best coverage today.