Do You Need Car Insurance in New Hampshire?
In the United States, having car insurance is a legal requirement in most states. However, New Hampshire is an exception, as it does not mandate all drivers to have car insurance. As such, some residents may wonder whether they need car insurance in the Granite State and what potential consequences they could face without it.
Though not legally required in New Hampshire, carrying auto insurance is still a wise decision. While drivers are not obligated to purchase a policy, they must still meet financial responsibility requirements if found responsible for an auto accident. This means that they must be able to pay for damages or injuries caused by them in the event of an accident.
Uninsured drivers are subjected to the New Hampshire Division of Motor Vehicles’ financial responsibility rules. If a driver cannot prove financial responsibility when involved in an accident, they could face significant consequences such as license suspension, hefty fines, and even filing an SR-22 insurance form for three years.
Importance of Car Insurance
Carrying car insurance provides several benefits beyond simple legal compliance:
1. Financial protection: Auto insurance safeguards you from high out-of-pocket costs following an accident by covering repair bills, medical expenses, and other damages.
2. Legal protection: With insurance, any legal fees or defence costs incurred due to an accident can be covered up to your policy limits.
3. Peace of mind: Knowing that you are insured helps alleviate stress and worries about potential accidents or financial issues.
New Hampshire Liability Coverage
Though not required by law, drivers seeking auto insurance should consider obtaining liability coverage. This type of coverage covers bodily injury liability (BI) and property damage liability (PD) to protect you financially if found at fault in an accident.
New Hampshire minimum liability limits include:
– $25,000 per person for bodily injury
– $50,000 per accident for bodily injury
– $25,000 per accident for property damage
To ensure thorough protection, consider investing in higher coverage limits and additional insurance types, such as uninsured/underinsured motorist coverage (UM/UIM), comprehensive, and collision coverage.
In conclusion, while car insurance is not a legal requirement in New Hampshire, having a policy can save you from financial troubles and potential legal complications in the event of an accident. It is crucial to evaluate your needs and budget before deciding whether auto insurance is right for your circumstances.