Car Insurance in New Hampshire Part 2 - Helps

Even If You’re Happy, It’s Best to Shop for a New Policy Every Couple of Years

Car insurance companies don’t calculate premiums on your level of risk alone; they also consider how much money you’re comfortable paying — a practice called price optimization

or “profit maximization” according to Bob Hunter, the director of insurance for the Consumer Federation of America. It might seem like your insurance company values your loyalty, and I can definitely say I’ve felt that way when I see my company’s “loyalty discount” on my policy, but they’re likely not rewarding you at all. According to a study by Earnix, 45 percent of large insurance companies analyze a range of your personal data (like credit scores, web shopping habits, and social media activity) with an algorithm that decides how likely you are to look for better deals.

In other words, the company says “thanks for sticking around, here’s some gradual premium rate increases buried under some ‘good driver’ discounts.” The smart customer says, “No, thank you.” Shopping around for new quotes every one or two years is an excellent way to keep insurers more on their toes and less on their analytics. While price optimization is a touchy and controversial subject, no company wants to lose your as their customer and they’ll see that you’re more likely to leave. Frequently keeping an eye out for a better policy is the best way to keep your insurer honest, and keep your rates competitive.

New Hampshire’s Minimum Coverage

The Bare Minimum

You don’t have to have any coverage in New Hampshire, but I’d still recommend a policy. Without getting too bogged down in the technical ins and outs of insurance policies, liability coverage, which covers pay for bodily injury and property damage caused by the driver, is only necessary in New Hampshire under special circumstances. New Hampshire’s auto insurance guide has some excellent information to expound upon when insurance becomes necessary.

If you do buy insurance, the most basic level of coverage required in the purchase of insurance in New Hampshire; $25,000 for bodily injury per person, $50,000 for total bodily injury for all involved, and $25,000 for property damage, or a 25/50/25 plan. (The quotes I got were all for coverage at this level.) When you purchase auto insurance, you are required to purchase at least $1,000 of medical payments coverage, too, as well as uninsured motorist coverage.

The Best Car Insurance Isn’t Just Cheap Car Insurance

I know both the trials of filing a claim and the importance of paying for adequate coverage. In 2015, I totaled my car and walked away with a couple of scratches, one heck of a story, and fortunately, a feeling of comfort in my coverage. Unfortunately, it’s likely that you will have to file a claim in your lifetime as well. Statistics show that the common driver averages an accident every 17.9 years. What’s even more frightening is that the average cost of an injury inducing, but nonfatal accident is a stupefying $74,900, and even if you have that much in your account, I’m guessing you’d rather not pay that out of pocket. 

I know I have bigger plans for my savings accounts. In most cases, upgrading to a 50/100/50 plan isn’t as daunting of a leap as you might expect. For example, my quote for a 25/50/25 plan with GEICO was $720. To up my coverage to 50/100/50 the cost went up to $810, only $90 extra annually, a drop in the bucket compared to shelling out another $25,000 or $50,000 out of pocket in the event of an accident. For me, it’s absolutely worth it to get coverage that is more likely to cover the total cost of an accident. It’s happened to me before and I was so glad my coverage was strong enough to protect my personal bank accounts.

 If You Skip Coverage, It’ll Cost You

In a state as free as New Hampshire, you have the option most American citizens don’t have: refusing automobile insurance. While it’s your right to drive without insurance in this great state, I’ll refer back to the statistics above to make the case for insurance, and I’ll use Allstate’s quote to compare. The cost of paying $504 annually with Allstate is a drop in the bucket compared to paying anywhere from $50,000 to $80,000 in the event of an accident. In fact,

 it’d take 99 years for a $504 policy to hit $50,000 in premium payments. So, even if you live to be 115 years old, I’d still bet on the insurance policy as the better financial move. The old adage of “better safe than sorry” has never been more true.

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