The Personal Auto Policy itself (Parts A through F, insureds, covered autos, exclusions) is covered in the national Personal Auto Policy guide. New Hampshire stands apart from almost every other state: most drivers aren't legally required to buy auto liability insurance. Instead, New Hampshire relies on its financial responsibility law. Drivers who do buy a policy get mandatory UM and mandatory medical payments. This guide covers:

• the financial responsibility law (RSA 264)
• the auto policy statutes (RSA 259:61, 264:15 to 264:18, 412:8)
• the auto cancellation law (RSA 417-A)
• the auto claim rules (Ins 1002)

Insurance isn't compulsory, but financial responsibility is

• No general mandate. New Hampshire generally doesn't require drivers to carry auto liability insurance. They must be able to meet the financial responsibility requirements for damage they cause.
• Uninsured in a reportable accident. An owner or driver without insurance has their license and registration suspended. The suspension lasts until they deposit security for possible judgments and prove future financial responsibility (RSA 264:3). An owner or driver who had a liability policy or bond at the time is exempt.
• Convictions. After certain convictions, such as DUI, the director may suspend license and registrations until the person gives and maintains proof of financial responsibility (264:2).
• Financial responsibility amounts: 25/50/25 (264:20). That's $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage.
• Proof may be an insurer's or surety's certificate, or a deposit of money or securities with the state treasurer (264:21, 264:22). New Hampshire law doesn't use the term "SR-22."
• Take all comers. The Department describes New Hampshire as a take-all-comers state: insurers must offer auto coverage to anyone who asks.

If a driver buys a policy: required features

Minimum limits of 25/50/25 (RSA 259:61).

Uninsured motorist coverage is mandatory (264:15)

• Every liability policy on a vehicle registered or garaged in New Hampshire includes UM, and hit-and-run coverage, at least at the minimum BI limits.
• If the insured buys higher liability limits, UM automatically equals the liability limits chosen.
• UM also works as underinsured coverage. A vehicle with liability limits lower than the insured's UM limits counts as uninsured to that extent (259:117).
• UM includes at least $25,000 of property damage when the at-fault driver's insurer is insolvent.
• Umbrella and excess policies that provide excess auto limits must include UM equal to those limits unless the named insured rejects it in writing. A rejection applies to all insureds and continues at renewal unless coverage is requested in writing.
• A release that could give up UM rights must carry a prominent WARNING, read and signed by the releasing party.

Medical payments coverage is mandatory (264:16, 264:17)

• At least $1,000 per person for the driver and passengers of the insured vehicle, for medical costs incurred within three years of the injury.
• The insured chooses whether to use med pay, health insurance or both. Health carriers can't coordinate against med pay, and duplicate payment is barred.
• There's no subrogation for these med pay payments.
• Exempt: commercial policies on more than 4 autos, and garage, repair, parking and trucking policies.

Other required features

• Absolute liability. Within the minimum limits, an insured's statement or a policy violation can't defeat recovery (264:18).
• Permissive users are covered even if the particular use was forbidden, but not someone who stole or converted the car.
• Separate settlements. An insurer can't make settlement of a bodily injury claim a condition of settling the property damage claim.
• No family exclusions. Exclusions that block intra-family or spousal claims are prohibited (412:8).
• Collision deductible waiver (412:8, Ins 1002.19). The collision deductible is waived when the damage is caused by an uninsured driver who is positively identified and solely at fault. The insurer pays the deductible within 30 days of the determination, and returns the insured's share of any subrogation recovery within 30 days.
• Residency. Policies are written only for New Hampshire residents, unless the car is garaged exclusively in New Hampshire. Intentional misstatement of residence voids coverage (412:9).

Fault: comparative fault

• A plaintiff recovers only if their fault was not greater than the defendant's, or the defendants' combined fault. Damages are reduced by the plaintiff's share (RSA 507:7-d).
• Examples: at 30% fault on $100,000, the plaintiff recovers $70,000. At 55%, the plaintiff recovers nothing.
• A defendant less than 50% at fault is liable only for its own share, unless the parties knowingly pursued a common plan (507:7-e).

Cancellation, nonrenewal and underwriting (RSA 417-A)

Allowed reasons for cancellation (417-A:4). After 60 days, or on a renewal, an auto policy may be canceled only for:

• nonpayment
• the insured's request
• the named insured not being a New Hampshire resident when the policy was issued, unless the car is garaged only in New Hampshire

Notice (417-A:5, 417-A:7, 417-A:8)

• 45 days before the effective date. 10 days for nonpayment, or for a new policy canceled within its first 60 days.
• The notice states the specific reasons and the right to ask the Commissioner for review within 10 days.
• It must also tell the insured about eligibility through the automobile reinsurance facility.
• During review, the policy stays in force until the review ends or the notice date, whichever is later, except for nonpayment.
• When an insurer refuses to write a policy, it gives the reasons within 5 days of a request, and the applicant may ask for review within 10 days.

Prohibited underwriting. An insurer can't cancel, refuse or nonrenew solely because of:

• age (RSA 412:17)
• residence, race, color, creed, national origin, ancestry or marital status
• a lawful occupation
• another insurer's refusal
• the applicant having no other policy with the insurer (417-A:3-a)
• credit information alone (417-A:3-c)
• the insured being a volunteer driver for a charity (412:17-a)

Refunds. On a personal lines policy, all unearned premium is returned when either party cancels (412:15, VII).

Auto claim rules (Ins 1002; RSA 407-D, 417:4 XX)

Repairs

• An insurer can't require a particular repair or glass shop. A fair and reasonable price is what a competent, conveniently located independent shop would charge.
• The claimant pays for only one estimate. The insurer pays for any others it requires.
• After-market parts must equal the originals in fit, quality and performance. They can't be specified on cars in service 2 years or less with 30,000 miles or fewer, or on certain leased cars.
• A like-kind rental is covered while the car is being repaired.

Total losses

• Value is based on at least 2 comparable sales in the past 90 days within 75 miles of where the car is garaged.
• The claimant has 20 days to show a higher value from 2 reliable sources.
• An owner who keeps a total-loss car receives the total-loss value minus the salvage value.

Common exam traps

• New Hampshire doesn't require most drivers to buy liability insurance. It enforces financial responsibility after accidents and convictions.
• A purchased policy must have 25/50/25 limits, UM and $1,000 med pay.
• New Hampshire's definition of an uninsured vehicle includes one with liability limits below the insured's UM limits, so UM also does the work of underinsured coverage.
• Cancellation notice is 45 days, or 10 days for nonpayment.
• A plaintiff recovers if their fault is not greater than the defendants'.