New Hampshire – Factors that Affect Auto Insurance Rates


New Hampshire is a unique state. It is one of the only two states in the United States that has not made it mandatory for the motorist to carry an auto insurance policy to cover the costs of damages in case of an accident. The other state is Wisconsin. These two states have what is known as financial responsibility laws. According to these laws, it is enough if the person has proof showing he has enough funds to cover damages in case of an accident. Carrying auto insurance is made mandatory only if you are not able to provide proof regarding your finances. An auto insurance policy is mandatory if you have been convicted of driving under influence or have accumulated a number of demerit points from the DMV.

However, many drivers in the state of New Hampshire opt for an auto insurance policy. It is a safety net with which every driver feels safe. The minimum liability recommended by the state of New Hampshire is twenty five thousand for one person to cover any bodily injury and fifty thousand dollars maximum for two persons. The minimum liability for property damage is twenty five thousand. It is not uncommon to find people going in for policies exceeding the minimum.

There are a lot of factors affecting an auto insurance policy. Your age plays a major role. Drivers below twenty five are considered to be very high risk and attract large premiums. Over twenty five drivers are more responsible, statistics show and hence are charged much less.

If you are over fifty years you are considered to be a very safe driver and will be charged very low premiums. Women are considered to be very safe drivers. Therefore, their premiums will be much lesser than men. Marriage plays an important role too. Statistically, it has been proven you are a much safer driver if you are going back to a family. A married man will be charged a lower premium than a bachelor. However, these are some of the factors that cannot be changed and are out of your control.

There are a few factors that can be changed at will and can affect your premiums. One such factor is geography. The place you stay makes your premium. If you live in a busy crowded area right in the middle of the city with a lot of traffic, the chances of you being involved in an accident are very high. You will, therefore, be charged high premiums. However, if you stay in a sparsely populated area with lesser cars, you will hardly be charged at all as you getting into an accident is highly improbable.

If you stay in an area, with very high crime rates, thievery is a constant risk and the premium will be high. You past driving record is also an important factor. It shows the kind of driver you are and what are the chances of you getting into an accident. The better your record is the lower your premiums will be. A cheap car will ensure you get a lower premium than a fancy expensive sports car.