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New Hampshire Auto Insurance Regulations

It is widely reported in online articles that New Hampshire does not require auto insurance protection for its drivers. While this is technically true, it would be a stretch to say that the state government is not involved in the auto insurance industry or uninterested in whether motorists get insured. There are some important auto coverage regulations to remember as a driver in the Granite State. Everyone who owns a car should be aware not only of the law, but also of the importance of protecting yourself as a driver and an auto owner when you take to the roads in New Hampshire.

NH a Financial Responsibility State

Outside of the state of New Hampshire, many people hear that there is no auto insurance law in the Granite State. There is some truth to this, though any blanket statement like that is misleading in its nature. Drivers here don't have to carry auto liability protection like they do in other states in the U.S. But with that being said, every driver has to comply with financial responsibility requirements set forth by the state. Like many others New Hampshire is a financial responsibility state when it comes to auto insurance. In basic terms, this means that drivers are responsible for the damage they cause. They will be held to that standard in court, so anyone who chooses not to carry auto liability coverage ought to be prepared to pay potentially large out of pocket expenses in the event of an at fault accident.

Although liability protection is not required, auto insurance is still the best idea in New Hampshire because of this financial responsibility law. If you get into an accident and you are found liable for the damages caused, you could be in for a huge bill if you do not have a policy. And thanks to these financial responsibility rules, the state courts are permitted to come after your assets to satisfy your responsibilities in these cases. Any at fault driver in an accident who is unable to meet the terms of these rules can also have their driving privileges suspended [1]. So there are multiple reasons to go ahead and get insured, even though technically you are not outside the law driving a car without liability coverage in New Hampshire.

Importance of Getting Auto Insurance

No matter where you live, auto insurance is an important investment if you plan to drive. Putting any legal consideration aside for the moment, thinking about the financial aspects of being insured or uninsured is enough to opt for insurance for most of us. Not very many residents of NH could truly withstand a large liability judgment out of pocket. Perhaps there are some among us who could, but they are surely in the minority. An auto insurance policy helps protect the covered policy holder from potentially large expenses for a relatively small cost. Getting insured can save you from having to fight it out in the courts after an accident. It can save time, hassle, and a lot of money if you are ever at fault in an accident.

Of course, liability protection is not all there is to an auto policy. Car insurance also includes collision and comprehensive insurance. In addition to protecting yourself from personal financial liability for damage to someone else's vehicles and the cost of dealing with their injuries, you can also do something to substantially protect your own investment in the vehicle you drive. Even without a state law, drivers can be compelled by lien holders to carry collision and comprehensive auto insurance until the vehicle is paid off and the lien satisfied. But this isn't bad news. While you are satisfying the demands of lien holders, you are also protecting your own monetary investment in the vehicle you drive. Without collision insurance, you might not be able to afford to replace your vehicle after an accident. And you'll still have to pay the car off even after it's totaled, so carrying this insurance is a smart idea regardless of lien holder requests.

Protection Goes Beyond the Law

In the state of New Hampshire as with any other state, drivers have to think about their auto coverage choices based on personal protection. The concerns that fuel our decisions on auto policies tend to go beyond the letter of the law and have more to do with our individual circumstances and priorities. If you are like most of us in the state, you could not withstand a large liability judgment if you were to face one. Better to protect yourself from these sorts of scenarios with a quality auto insurance policy. Irrespective of what New Hampshire auto insurance regulations might be, drivers should make choices based on personal protection.

[1] http://www.nh.gov/insurance/consumers/documents/nh_auto_guide.pdf Retrieved 2010-03-28.

 

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