Auto Insurance Laws in New Hampshire
New Hampshire does not have a law requiring car owners to have auto insurance. Laws are in place to protect policyholders, set minimum amounts for those who purchase insurance and for the cancellation of policies. Laws also protect insured car owners when they are involved in an accident with an uninsured motorist.
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Minimum Requirements
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Even though the law does not require auto insurance, laws do mandate a minimum amount for those who do purchase coverage. The minimum liability coverage is $25,000 for injuries sustained by one person and $50,000 for two or more people as of 2010. The property damage minimum is $25,000. You must also purchase medical payment coverage of at least $1,000 and uninsured motorist, which must be the same amount as your liability insurance.
Definitions
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Liability auto insurance pays the medical bills and damage to the other vehicle but not your medical cost and repairs. To have coverage for your vehicle it is necessary to purchase comprehensive and collision insurance. Medical payment coverage will pay your medical bills along with your passengers after an accident. When a person who has no insurance causes an accident, uninsured motorist will pay the medical bills of you and your passengers.
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Insurance Company
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By law, companies selling auto insurance are required to have a license through the New Hampshire Insurance Department. To obtain a license, a company must meet specific financial and background requirements. The New Hampshire Department of Insurance warns consumers that not all national and Internet base insurance companies are licensed to provide auto insurance in New Hampshire. Premiums charged by an insurance company must also comply with the law.
Cancellation
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Under New Hampshire law, an insured person cannot have the policy canceled after it has been in effect for 60 days, except in specific situations. A policyholder can have the policy canceled when the premiums are not paid. The insurance company is required to send a 10-day notice telling the insured that their policy is being canceled due to non-payment. A policy can be canceled when you request it or if you fail to sign a residency form.
Uninsured
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An uninsured person at-fault in an auto accident can be required to pay cash that is equal to the costs of the accident. The New Hampshire Department of Motor Vehicles (DMV) will require that you purchase insurance to meet the DMVs financial responsibility requirements.
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References
- Photo Credit Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
