AUTO INSURANCE ARTICLE

Understanding Auto Insurance Basics in New Hampshire

By: beverly

New Hampshire, unlike other states in the US, considers a liability policy as an option for its residents, not a requirement. Liability policy refers to the coverage for an at-fault accident by the insured to pay both the vehicle and person of the other. This is not to say that NH does not recommend its residents to carry one. And it is in fact, to your advantage if you are enrolled to an auto insurance plan.

Let’s consider you are one of the best drivers in town, but how about others who drive alongside you on the road? Are you guaranteed that they behave and drive exactly as you do? And of course, no one wants accidents. And that’s why they are called accidents – they are never planned nor expected. So, should you happen to be involved in an “at-fault” accident and you don’t have liability policy, you still have to pay up anyway. The New Hampshire Division of Motor Vehicles would require you to post a bond or cash equal to the amount of damage you caused in that accident. And the New Hampshire Division of Motor Vehicle would require you anyway to purchase auto insurance with minimum coverage. Only until you satisfy these requirements can you gain back the legal right to drive in New Hampshire.

If you buy auto insurance in New Hampshire, the minimum limits available for Liability coverage are 25/50/25. Liability coverage pays for damages to others for which you are at-fault or legally liable. These figures mean that your coverage amount to the following:

$25,000 per person for bodily injury

$50,000 if 2 or more persons are hurt

$25,000 for property damage

Repair damage to your own vehicle is not covered by the Liability coverage. What you need for this is called Collision and Comprehensive coverage.

Buying auto insurance in the State of New Hampshire also includes Medical Payments and Uninsured Motorists coverage. Medical Payments coverage pays for medical expenses for you and any passengers in your vehicle. Your Medical Payments coverage should be at least 1,000US$.

To cover you and your family members for injuries from an accident with an uninsured driver, or a hit and run, legally liable motorist, you need an Uninsured Motorists coverage. This coverage also covers you against injuries where you were not at fault, if the at-fault driver’s coverage is less than your own. In New Hampshire, your Uninsured Motorists coverage must equal the limit of your Liability coverage.

The beauty of auto insurance is only seen in those rare but desperate moments of need. As mentioned previously here, no one wants the unexpected. But the future is not in your hands. What you can do, however, is to protect yourself from the uncertainties of the future – like an accident that may cause severe damage to you, your family, your vehicle or that of another motorist’s life and car.