New Hampshire Car Insurance Requirements: Financial Responsibility

New Hampshire is the only state that does not require every driver to carry auto insurance, so the New Hampshire car insurance requirements are different from what most drivers expect. You can register a vehicle, hold a license, and drive legally without ever buying a policy. In place of a universal mandate, the state runs a financial responsibility system under RSA Chapter 264: if you cause an accident, you must be able to prove you can pay for the damage. And several categories of drivers do have to carry insurance, with specific minimum limits set by statute.

The Default Rule: Financial Responsibility, Not Insurance

Under RSA 264, “financial responsibility” means the ability to cover damages for bodily injury or property destruction arising from an accident you caused.¹ You can meet that obligation two ways: buy an auto insurance policy, or deposit money or securities with the state treasurer in the required amounts.²

The amounts the state accepts as proof are:

$25,000 for bodily injury or death to one person
$50,000 for bodily injury or death to two or more people in the same accident
$25,000 for property damage

These numbers are often written as 25/50/25.¹ They represent the statutory floor, not a safe ceiling.

Minimum Coverage If You Do Buy a Policy

Any auto policy issued in New Hampshire has to meet the same standards, whether you bought it voluntarily or the state is requiring you to carry it. Liability coverage must match the 25/50/25 limits above.¹ Two other coverages are also mandatory on every private passenger policy.

Medical Payments Coverage

Every private passenger auto policy must include at least $1,000 per person in medical payments coverage. It pays reasonable medical costs for the driver and passengers injured in an accident involving the insured vehicle, regardless of fault, and applies only to costs incurred within three years of the accident.³ Certain commercial policies — those covering more than four vehicles, or operations like garages, repair shops, and trucking — are exempt.

Uninsured Motorist Coverage

Because New Hampshire doesn’t require insurance for everyone, your odds of being hit by an uninsured driver are higher than in other states. State law responds by requiring every policy to include uninsured motorist coverage at least equal to your liability limits. If you buy liability above the 25/50/25 minimum, your uninsured motorist coverage automatically rises to match. The same coverage applies to hit-and-run accidents where the other driver is never identified.⁴

When Insurance Is Mandatory

Certain convictions and events strip away the option to go without coverage. The DMV will require you to file proof of financial responsibility through an SR-22 certificate after:

Any DWI conviction
Leaving the scene of an accident or failing to report involvement
A second offense of reckless operation

These come from the DMV’s filing requirements.⁵ Other triggers include homicide or assault arising from driving a motor vehicle and a second conviction for excessive speed.⁶ Drivers found at fault in an accident who couldn’t cover the resulting costs are also pulled into the requirement under RSA 264:3.

An SR-22 isn’t a policy. It’s a certificate your insurer files with the state confirming you carry at least the minimum coverage. The insurer must be licensed in New Hampshire, and the DMV only accepts the uniform SR-22 form; you can’t get it from the DMV directly.⁵ The filing requirement typically runs three years from the triggering event, and the clock resets if you have another uninsured accident, a new qualifying conviction, or an unsatisfied judgment during that time.⁷ If the SR-22 policy lapses, your insurer notifies the state and your license and registration are suspended until you obtain new coverage, have a fresh SR-22 filed, and pay the reinstatement fee.

What Happens If You Cause an Accident Without Insurance

This is where going without coverage gets expensive quickly. Under RSA 264:3, once the DMV receives an accident report, the director will suspend the license and registration of any at-fault driver who cannot post security sufficient to cover potential judgments from the crash. The suspension stays in place until the driver both posts the security and provides proof of ongoing financial responsibility going forward.⁸

If someone sues you for injuries from the crash, a court can order your personal assets used to pay the judgment.⁹ If no lawsuit is filed within two years of the accident, the DMV may issue a new license and registration, but only if you provide and maintain proof of financial responsibility.¹⁰ Reinstatement also carries a $100 fee.¹¹

Why Most Drivers Carry Insurance Anyway

The option to skip insurance looks attractive until you run the numbers. A single emergency room visit after a minor crash can exceed the $25,000 per-person financial responsibility amount, and a serious injury claim involving surgery and rehabilitation can reach six figures. Without a policy, every dollar comes out of savings, home equity, or future wages.

Insurance is also effectively required in situations the state doesn’t control. If you finance or lease a vehicle, the lender will almost certainly require comprehensive and collision coverage as a condition of the loan, and letting that coverage lapse triggers force-placed insurance at a much higher premium added to your loan balance.

For most drivers, a standard auto policy at or above the 25/50/25 minimums is the cheapest reliable way to meet the state’s financial responsibility expectation. The alternative — a suspended license, personal asset exposure, years on an SR-22, and reinstatement costs — runs well past what premiums would have cost in the first place.⁹

1
New Hampshire General Court. New Hampshire Code 264:20 – Amount of Proof of Financial Responsibility
2
Justia. New Hampshire Code Chapter 264 – Accidents and Financial Responsibility
3
New Hampshire General Court. New Hampshire Code 264:16 – Medical Payments Coverage
4
New Hampshire General Court. New Hampshire Code 264:15 – Uninsured or Hit-and-Run Motor Vehicle Coverage
5
New Hampshire Division of Motor Vehicles. Insurance Requirements / SR-22
6
Connecticut General Assembly. Motor Vehicle Financial Responsibility in New Hampshire
7
Cornell Law Institute. New Hampshire Administrative Code Saf-C 7504.12 – Cancellation of Requirement
8
New Hampshire General Court. New Hampshire Code 264:3 – When Proof Required After Report of Accident
9
New Hampshire Insurance Department. 2022 Automobile Insurance Consumer Frequently Asked Questions
10
New Hampshire General Court. New Hampshire Code 264:7 – Suspensions
11
New Hampshire Division of Motor Vehicles. Suspension and Restoration