While most people know that the State of New Hampshire does not require automobile insurance, many are unaware of the consequences the State imposes on those that do not.
RSA 264:3 provides that, after a motor vehicle accident, the director of the Division of Motor Vehicles of the New Hampshire Department of Safety shall suspend the license and registration of the at-fault driver and shall suspend the registration of the owner of the vehicle involved in the accident (the suspension of the registration includes the surrender of one’s license plates). This suspension usually applies until the driver and/or owner have provided security to satisfy any judgment for damages resulting from the accident. But, and here’s a big reason for having auto insurance, if you have auto insurance or a motor vehicle liability bond, RSA 264:3 does not apply to you.
What does all this mean? If you are involved in an accident, you should be prepared to prove to the Department of Safety that you have the present ability to pay for personal injury damages of up to $50,000 (if two or more people are injured) or $25,000 for property damage, or you risk losing your license and registration. If you own a vehicle and someone you allow to drive the vehicle has an accident, you too can be required to provide proof of the ability to pay these amounts or have your vehicle registration suspended.
There are other situations under which one may be required to furnish proof of financial responsibility, as well as limited circumstances which may exempt you from these requirements following an accident. If you are concerned about what financial responsibility requirements may apply to you, contact one of our attorneys at 603-225-7170 or toll-free at 800-262-8112, your insurance agent, or the New Hampshire Department of Insurance Consumer Hotline (800-852-3416). You may also send us a message using our contact form. Do this before you or your vehicles are involved in an accident to assure you are adequately protected!