Do You Need Auto Insurance in New Hampshire? The Granite State's Unique Approach
New Hampshire is known for its unique approach to auto insurance, often described as a "liability-only" state. This doesn't mean you can drive without insurance, but it does mean the requirements are different than in most other states. Understanding these nuances is crucial for all drivers in the Granite State.
The Short Answer: Yes, you need auto insurance in New Hampshire, but the type and amount are less strictly defined than in many other states.
Understanding New Hampshire's "Freedom of Choice" Approach:
New Hampshire’s insurance laws are based on the principle of "freedom of choice." This means drivers aren't mandated to carry a specific minimum amount of liability coverage. Instead, they are allowed to choose their level of coverage, or even opt out of carrying liability insurance altogether. However, this choice comes with significant risks.
What Happens if You Choose Not to Carry Insurance?
While you're not legally required to carry liability insurance in New Hampshire, choosing this route exposes you to substantial financial risk. If you cause an accident and injure someone or damage their property, you could be personally responsible for all costs associated with the accident, including:
- Medical bills: These can easily reach hundreds of thousands of dollars, especially in serious accidents.
- Lost wages: If the injured party is unable to work, you could be liable for their lost income.
- Property damage: Repairing or replacing a damaged vehicle or other property can be expensive.
- Legal fees: Defending yourself in court can lead to significant legal costs.
Essentially, choosing to forgo insurance in New Hampshire shifts all the financial burden of an accident onto you.
What Types of Auto Insurance Are Available in New Hampshire?
While not mandatory, the following types of auto insurance are commonly purchased in New Hampshire:
- Liability Insurance: This covers damages you cause to others' property or injuries you cause to other people. This is the most common type of insurance and protects you from substantial financial losses in the event of an accident you cause.
- Uninsured/Underinsured Motorist Coverage: This protects you if you are involved in an accident with an uninsured or underinsured driver. Given the option to not carry insurance in NH, this coverage becomes even more vital.
- Collision Coverage: This covers damage to your own vehicle, regardless of fault.
- Comprehensive Coverage: This covers damage to your own vehicle caused by events other than collisions, such as theft, vandalism, or weather damage.
What Happens if I'm Involved in an Accident Without Insurance in New Hampshire?
If you cause an accident without insurance in New Hampshire, you will likely face serious financial consequences. The injured party can sue you to recover their damages, and a judgment against you could lead to wage garnishment, bank levies, and even the seizure of your assets.
What are the Penalties for Driving Without Insurance in New Hampshire?
While not directly penalizing the lack of liability insurance, New Hampshire does penalize drivers for driving without any insurance. This includes penalties such as fines and license suspension.
Do I Need SR-22 Insurance in New Hampshire?
An SR-22 is a certificate of insurance that proves you have the minimum required liability insurance. While not generally required in New Hampshire unless mandated by the court or DMV after a serious offense, obtaining it demonstrates financial responsibility.
How Much Auto Insurance Should I Carry in New Hampshire?
There's no legal minimum, but financial experts strongly advise carrying sufficient liability coverage to protect yourself from potentially devastating financial losses. The amount you choose should reflect your assets and the potential costs of a serious accident.
Conclusion:
While New Hampshire offers a unique approach to auto insurance, choosing not to carry any insurance is a considerable risk. The potential financial consequences of an accident without coverage far outweigh the cost of purchasing at least liability insurance. It's crucial to carefully weigh the risks and benefits before making a decision about your auto insurance coverage in New Hampshire. Remember to consult with an insurance professional to determine the appropriate coverage for your individual needs and circumstances.
