New Hampshire Car Insurance Information

When it comes to auto insurance, there are basically two types of state-based systems. First are the states that will come and take your license plates, or something similar, if notified by the insurance company that your liability insurance has lapsed. Second are those states that require that you have, in your car, proof of either liability insurance or financial ability to pay - if you are stopped by the police or you are in an accident. The New Hampshire car insurance system is the latter.

The New Hampshire Department of Insurance requires 25/50/25 coverage. But that's not the end of it. Unlike most states, if you purchase a New Hampshire car insurance policy, as most people do (as opposed to maintaining proof of ability to pay), you are required to purchase more than just liability coverage.

If you buy liability insurance, this state requires that you also buy uninsured motorists insurance with the same minimum level of coverage. In addition, you must buy at least $1,000 of medical payments coverage. As with most states, you are not required to buy comprehensive or collision insurance by state law, though virtually all lenders require that you maintain this coverage as long as there is an outstanding balance due on your car loan. New Hampshire insurance companies also routinely provide towing and labor coverage and rental reimbursement coverage.

One of the important questions about insurance in any state is how much you should buy. Is the state required minimum enough? Many times, the answer is a definite "no."

Some states, for instance, require as little as $10,000 coverage for property damage. That will cover a five-year-old Ford Focus just fine, but it will be completely inadequate if you happen to hit a six-month-old Mercedes. Hitting an expensive car, or being involved in an accident where there is a serious injury, could easily cost well above the minimally set liability levels.

You need to carry enough insurance to be reasonably sure that all damages and costs from an accident that is your fault will be paid. You could be responsible for replacing a new Jaguar XK at $82,000, may God forbid. If you don't, the results can be staggering. If you are sued, you could end up owning tens of thousands of dollars for the other person's car alone. If there is other property damage or medical expenses, you are responsible for any overages as well.

If you can't pay the damages, you could lose much of your property and savings, if you have any. If not, or if it isn't enough, you could wind up with garnished wages or a large and unexpected debt that could, at the very least, damage your credit severely. So, you need to do your research concerning the exact New Hampshire car insurance coverage levels that you need.

So how much is enough? There is no way to say exactly, because you can't really cover every situation, but 50/100/50, twice the required state coverage in New Hampshire, is probably not unreasonable. In any case, make sure you talk this over with a New Hampshire car insurance agent and get the coverage that's right for you.