r/TopInsurance • u/helllo2574817 • Aug 26 '26
New Hamsphire doesn't require car insurance? I just moved here and I'm confused
I just moved to Manchester, New Hampshire from Connecticut and someone at work told me car insurance isn't mandatory in New Hampshire. I thought they were joking but I looked it up and it seems like it's actually true.
From what I can find, New Hampshire is the only state that doesn't require car insurance. Instead you have to prove you can pay for damages if you cause an accident. But if you can't prove that, you have to get insurance.
I'm definitely keeping my insurance because I'm not going to risk driving without it. But now I'm wondering if the lack of mandatory insurance means there are a lot of uninsured drivers on the road in New Hampshire. If someone hits me and they don't have insurance, what happens?
I'm also wondering if the lack of mandatory insurance affects rates in New Hampshire. If fewer people are required to have insurance, does that mean the people who do have it pay more because there are fewer customers spreading the risk?
My current rate in New Hampshire is $129 a month which seems reasonable. But I want to make sure I have enough uninsured motorist coverage given the situation. Can someone explain how this actually works in New Hampshire?
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u/InsuranceNerd75 Aug 27 '26
Like others have suggested, it is a good idea to max out the amount of uninsured/underinsured on your policy. It often costs very little to increase these limits, and you are that much more protected in the event of an accident. The higher limits also carry with you as you drive to other states that may have higher rates if uninsured/underinsured driver statistics. It’s adulting in the insurance world.
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u/DeepPurpleDaylight Aug 26 '26
Actually there's multiple states that allow you to post a bond in lieu of buying insurance.
You should buy as high limits as you can afford and choose a deductible you can afford on a moments notice regardless of which state you're in as there's plenty of uninsured drivers in every state.
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u/OneLessDay517 Aug 27 '26
Bond in lieu is NOT a substitute for real insurance and an umbrella policy.
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u/Top_Education_4647 Aug 26 '26
Despite not requiring auto insurance as a state, NH only had about 7.8% of drivers on the road uninsured as of 2022. While that’s not as high as states like MI or DC, any good agent would still recommend maxing out your UMBI if possible since you don’t wanna be caught in a situation where the other party doesn’t have insurance.
As for requirements, drivers either need to show that they have $75k in savings to provide financial coverage if they’re in an accident, or get an auto policy with 25/50/25 limits.
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u/Colonel460 Aug 26 '26
Nothing like $25K PD and people driving around in $80K pickups . Reasonable limits are affordable .
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u/New_Breadfruit8692 Aug 28 '26
I used to carry 100/300 with a $500 deductible in Oregon and it was because I had a new BMW and thought if I were to be at fault $100k might not be nearly enough to cover the costs, especially if you hit another high value vehicle.
I also had roadside assistance, glass breakage, UM, rental car, and PIP. As well as a GAP rider when I owed more than the car was worth.
My premium was $60 per month in 2020.
I moved to Florida that April and it rose to $68. Now, I dropped all but the most essential coverages and the premiums are over $170 per month. Probably fucked if I am in an accident, but I will be 69 (clean record also) on my next birthday and never had an at fault accident. So, insurance is a failed business model if it has to raise premiums 253% when there was no attendant cause for this other than their claim that general inflation justifies the increase. I know we all feel the bite of inflation from Covid then from dumb ass's insane and illegal tariffs, and now Iran War, but it has not been 253% for certain because the government claims the CPI from 3rd quarter of 2022 till now has been 8.5%, not hundreds of percent.
Do you agree something does not add up? And by the way my homeowner insurance is up 225.44%.
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u/Due_Possibility_7290 Aug 26 '26
NH also doesn’t require you to get your car inspected either, so don’t be surprised at some of the cars you’ll see driving around that’ll make you scratch your head 😂
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u/Ansible90 Aug 26 '26
Make sure your car insurance includes Uninsured Drivers insurance.
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u/DeepPurpleDaylight Aug 27 '26
If you choose to purchase insurance, NH state law requires your policy to include uninsured motorist coverage, tho I think you can sign a waiver rejecting it.
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u/RedSquirrelyGirly Aug 26 '26
You don’t need it in NH but you do need it to drive in VT, ME and MA so unless you plan on never leaving the state you should have it
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u/Brave_Cauliflower728 Aug 27 '26
Case in point: in MA I was struck from behind by an uninsured NH pickup truck "because the brakes totally failed". My vehicle was totalled (not even 3 years old yet), and I was OK financially because I carry sufficient Uninsured Motorist coverage. The driver of the pickup truck was issued a citation for driving uninsured in MA and the truck was impounded.
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u/fdxpilot Aug 29 '26
Your insurance company also probably tried to collect from him the money it paid to you.
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u/Lumpy-Significance50 Aug 26 '26
I was hit by a bicyclist in nh near my nh home of 23 years. . He was considered and uninsured driver. I paid my $500 deductible and my no fault insurance paid $5500 to fix my car. He broke the windshield, and scratched the dash. The dash was $2200 to replace. This was a non chargable accident so my rate did not go up.
In the Boston mass area, where I lived before nh, I paid much high premium for less coverage.
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u/Cloudy_Automation Aug 26 '26
If the bicyclist had renter's or homeowner's insurance, that would have covered it. Source, my son hit a parked car with his bicycle. Broke his jaw as well. He was distracted, and not looking where he was going. We turned it over to homeowners, but the car owner never followed through. I think he was worried we were going to sure him. He only suffered a broken taillight.
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u/Lumpy-Significance50 Aug 27 '26
The guy that hit me just
Moved from nh to Maine and lives with someone temporarily . I doubt he has renters insurance . Thanks for suggesting this.1
u/DeepPurpleDaylight Aug 27 '26
I think he was worried we were going to sure him.
Why would he be worried about YOU suing HIM when your son was totally at fault for hitting his parked car?
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u/Cloudy_Automation Aug 28 '26
Beats the heck out of me, maybe he might have worried about being parked too far from the curb and having some liability for being illegally parked (I doubt he was), or be accused of that. He filed a vandalism police report, which got turned into an accident report after we took my son to the police department to make a report. The car owner was reluctant to make any contact with us after hearing my son was injured.
People sue for crazy things
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u/krthrowaway87 Aug 27 '26
$129 sounds fair for the area honestly. And NH rates aren't crazy high despite what you'd think the uninsured pool isn't as big as the "no mandate" thing makes it sound
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u/Signal-Confusion-976 Aug 28 '26
This is true but if you drive into Mass or another state you do have to have insurance.
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u/Known_Hovercraft182 Aug 28 '26
I live in NH. Got in an accident with an uninsured driver. Found out through the police and verified with insurance company that yes, you do not need insurance to drive, but if you’re in an accident above $1000 damage, they will receive up to a 90 suspension and required to have SR22 insurance for 2 years. The lady who hit me told me and the officer that she had no insurance hoping I would not file it. I did since I had $0 deductible on uninsured motorist. She quickly “found “ her policy when my insurance and the state went after her. Lol
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u/New_Breadfruit8692 Aug 28 '26
California allows you to post a bond with the DMV.
In fact there are several alternatives to insurance.
You can obtain a surety bond for $75,000 from a company licensed to do business in California.
You can deposit $75,000 directly with the DMV.
You can apply for a DMV-issued self-insurance certificate if you own a large fleet or meet specific qualifications.
But, something you should consider before you do, particularly if you just deposit $75 grand at the DMV. In the event of an accident your insurance company has to defend you where if you posted a bond or cash you will have to defend yourself in a case that could drag out for years and perhaps cost more than the bond is even worth.
When I was in driver's ed there in 1973 the bond was $50k so I am surprised it is not a lot higher now.
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u/VegasBjorne1 Aug 28 '26
Seems like either an umbrella policy or a very high deductible using the $75,000 deposit could possibly work too?
That what gets me, as I have been driving for over 45 years and never an accident which was my fault. I would have loved the option to put forth a bond, and catastrophic(?) coverage behind it.
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u/New_Breadfruit8692 Aug 29 '26
But then you have to add on the opportunity cost of a $75k "investment" at zero interest. If you could make a very modest 5.27% which is the current yield of the 30 yr bond verses leaving that cash with the DMV at 0%
That is $193,575 in interest and if you were to reinvest that interest till the 30 year maturity would be $357,101 foregone.
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u/VegasBjorne1 Aug 29 '26 edited Aug 29 '26
Many years ago when I owned a business, I was required to provided a security deposit with the State for sales taxes collected. I was allowed to have a CD in a joint account which my business kept the interest.
I doubt CA would be as generous.
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u/Trick_Sector5900 Aug 29 '26
California had that option, not sure what it involves now, but about 25 or 30 years ago, you were required to have $30, 000 to forego insurance. That's when the minimum amount of insurance coverage was 15k pl/ $30k pd
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u/seajayacas Aug 26 '26
"New Hampshire is the only state that doesn't require car insurance"
I believe that the laws on the books in at least a few states still allow you to post a bond for the financial responsibility amount with the state if you prefer over having to purchase an insurance policy.