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Your Guide to Understanding Auto Insurance in the Granite State
What You Need to Know!
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Auto Insurance in the Granite State
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1. Choosing the coverage you need:
- Why buy Auto Insurance?
- What coverage should I buy?
- How much coverage should I buy?
2. Factors affecting the premium paid by you:
- Underwriting, rating, and premiums.
- Some factors companies use to set rates.
- Discounts.
3. Shopping for the best value:
- Getting rate quotes.
- Buying insurance
- Give accurate information.
4. Filing an auto insurance claim :
- What information must I provide when I file a claim?
- Filing a claim with your insurance company.
- Filing a claim with the other driver’s insurance company.
5. Frequently asked questions :
6. What if you have a problem? :
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Why Buy Auto Insurance?
Trả lờiXóaIf you are in an auto accident and you are at fault, you could be held liable (legally
responsible) for bodily injury or property damage resulting from that accident. If a
lawsuit is brought by the injured party, a court could order that your assets be used
to pay for the resulting damages that are awarded. Even for an accident where you
were not at fault or were only partially at fault, the costs of defending yourself
against a legal action could be very high.
What if you are involved in an auto accident where the other party is at fault, but
they have no money, no insurance, or inadequate insurance and you are injured?
Even regarding an accident where you are not at fault you could incur substantial
medical and other costs. In New Hampshire, Auto Insurance Policies provide
coverage that would respond to such situations.
And don’t forget the damage to your own auto as well. You will need to repair your
auto in the event of an accident or other type of property damage loss. This will be
paid by you unless you have the proper coverage available under Auto Insurance.
What Coverage Should I Buy?
Trả lờiXóaLiability Coverage pays for damages to others for which you are legally liable. If you
For example:buy Auto Insurance in New Hampshire, the minimum limits available for Liability
Coverage are 25/50/25, or $25,000 per person for bodily injury, up to $50,000 if 2 or
more persons are hurt, and up to $25,000 for property damage.
Liability Coverage does not pay to repair damage to your own auto. This type of
insurance is called Collision (damage due to contact with another auto or object)
and Comprehensive (damage incurred due to reasons other than a collision)
Coverage.
Per New Hampshire Statutes, NH RSA 264:16, if you buy Auto Insurance for
personal use, you must also buy Medical Payments Coverage. Medical Payments
Coverage pays for medical expenses incurred as a result of an automobile accident
(regardless of fault). By law, you must buy at least $1,000 of Medical Payments
Coverage.
CHOOSING THE COVERAGE YOU NEED
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Per New Hampshire Statutes, NH RSA 264:15, if you buy Auto Insurance you must
also purchase Uninsured Motorists Coverage. Uninsured Motorists Coverage
provides coverage should injuries result from an accident involving an at-fault
uninsured driver, or a hit and run driver. It also protects against injuries caused by
insured drivers whose coverage is less than your own. In New Hampshire,
Uninsured Motorists Coverage must be provided at limits equal to your Auto
Liability Coverage.
You do not have to buy Collision Coverage or Comprehensive Coverage to protect
your autos, unless you are obligated by your lender. If you do not purchase
coverage for either or both of these options, you will need to personally fund any
repair to your auto made necessary due to collision with another auto or a normally
covered non-collision loss.
Common Types of Coverage Available
Trả lờiXóaThe following types of coverage are generally available in New Hampshire:
• Auto Liability Coverage – This provides coverage for liability incurred as the
result of an auto accident caused by you. It also covers expenses for a lawyer to
defend you should that become necessary. There are two kinds of liability
coverage: Bodily Injury and Property Damage
• Bodily Injury Liability Coverage – This coverage pays for claims made as the
result of injury to others resulting from an accident you cause. It compensates
others for pain, suffering and economic damages, such as lost wages.
• Property Damage Liability Coverage - This coverage pays for damage to
another auto or property of others incurred as the result of an auto accident
caused by you.
• Uninsured or Underinsured Motorist Bodily Injury Coverage - This
coverage pays for injury to you if you are involved in an accident involving an
automobile driven by an individual who is uninsured or underinsured and who is
found to be liable for your damages.
• Medical Payments Coverage – This coverage pays for medical costs incurred
as a result of injuries sustained in an accident without regard to fault. This
coverage will pay for covered expenses up to one year (this time-frame may
vary by insurance company) following the date that the injuries are sustained.
• Collision Coverage – This coverage pays for damage to your auto when it
collides with another auto or object. This coverage is generally required by a
lender, if a loan is obtained on your vehicle.
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• Comprehensive Coverage – This coverage pays for damage to or the
loss of your auto from causes other than collision (for example: hail,
vandalism, fire, theft, etc.). This coverage is generally required by a
lender, if a loan is obtained on your auto.
• Towing and Labor Coverage – This coverage reimburses you for
towing expenses when your auto becomes disabled and requires
roadside assistance.
• Rental Reimbursement/Transportation Expenses – This coverage, if
provided, pays a specified amount for help in covering the necessary
rental of a substitute auto while yours is being repaired. This coverage
applies for a limited period of time and is referenced in your policy
conditions.
How Much Coverage Should I Buy?
Trả lờiXóaAn immediate problem in determining how much coverage to buy is that no
one plans to have an accident. It is a “what if” consideration.
Unless you have an accident, you will never experience the benefits of Auto
Insurance. Predicting the future is impossible. You can not tell if and when
you might be involved in an accident, how much damage there might be, or if
the other driver will be insured. The Auto Liability Coverage Limits you
choose should be high enough to protect you from the potential loss of your
assets due to Bodily Injury and Property Damage Claims that may be made
against you as the result of an accident.
Bodily Injury and Property Damage Claims can easily be higher than
minimum coverage levels since autos now cost many thousands of dollars
and medical costs have soared. To choose the level of coverage for Auto
Liability and Property Damage, think about what you could lose. In New
Hampshire, Uninsured and Underinsured Motorist Coverage would be
included in any purchase of Auto Liability Coverage as coverage is provided
at the same limits.
Even if you do not yet have significant assets, having adequate coverage
would help avert incurring significant debt that might make obtaining assets
in the future more difficult.
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Underwriting, Rating and Premiums:
Underwriting and rating determine what you pay for Auto Insurance.
Insurance Companies analyze the level of exposure or risk by reviewing
multiple factors, including claim history and motor vehicle records of you and
other household drivers to decide how much risk you present. Credit history
may also be taken into consideration.
As a result of the underwriting process, the driving exposures presented, and
the corresponding claims data, insurance companies develop rates and
submit (file) their rating plans to the New Hampshire Insurance Department
for approval for use in New Hampshire. Your cost reflects the insurer’s
estimate of the cost to assume financial responsibility for the exposure to
auto accidents.
When you apply for insurance you will be asked a number of questions. The
purpose of these questions is to aid in risk assessment and to help
determine the amount of premium you will be charged
Some Factors Companies Use to Determine Rates Include:
Trả lờiXóa• Age, Gender and Marital Status – (i.e., a single 17 year old male vs. a
married 45 year old female). Historical trends indicate that certain groups of
drivers have more accidents. The greater the chance a group of drivers will
have a loss, the higher the cost of the premiums (or “rating”) for that group.
• Coverage Limits - The price that you pay will reflect the level of coverage
that you purchase. Higher coverage limits cost more than lower coverage
limits.
• Household Members - The ages and driving records of other drivers in
your household will likely affect your premium. If you have teenage drivers
and your policy covers them, your premium will increase for that reason
whether or not they ever or rarely drive your autos. It may be possible to
avoid many of the effects on your policy premium, if the teen driver buys
their own policy. It is critical that you notify your insurance company of all
licensed (or permit) drivers in your household that may be considered to be
an exposure under your Auto Insurance Policy.
• Location - The price that you pay will be affected by where you garage
and drive your car. Drivers in heavily populated areas often pay more than
rural drivers because of more traffic activity and an increased exposure to
accidents, theft, and vandalism.
FACTORS AFFECTING THE PREMIUM
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• Type of Auto - The price that you pay will be affected by the characteristics of
the auto that you drive. Model (standard versus high performance, for instance),
model year, and value of your car influence the premium charged. Some autos
cost more to insure because they are more easily damaged, more expensive to
repair, or more likely to be stolen.
• Use of the Auto - The price that you pay will be affected by how your auto is
used. For instance, your daily usage may exceed set criteria for mileage (such
as commuting a long distance to work each day).
• Credit history – Many companies review your credit history. Insurance
companies may apply adjustments to your rate that take your credit score or
attributes of your credit history into consideration.
Discounts:
You may be eligible for discounts which are part of the insurance company’s
rating plan that can serve to reduce your premiums. Be sure to ask about
possible discounts when buying or renewing your auto insurance policy.
Examples of possible discounts are:
Anti-theft devices - This may be offered as a discount on your Comprehensive
Coverage Premium for devices that discourage theft or vandalism.
• Auto/home packages – This may be offered if you buy both your Auto and
Homeowners Policies from the same insurance company.
• Good driver – This may be offered to policyholders who maintain a good
driving record.
• Good student – This may be offered to youthful drivers who maintain a
specified grade point average.
• Low annual mileage – May be available for vehicles operated less than a
specified number of miles per year.
• Multiple vehicles – This may be offered when the same company insures
more than one autoin your household.
Not all companies offer all of the discounts listed here. Some companies may
offer more or less discounts than those listed above.
Getting Rate Quotes:
Trả lờiXóaOne way to make sure that you are getting the best available premium for your
Auto Insurance is to request premium quotes. This can be requested from your
current producer/agent as they likely represent more than one company or you may
seek a quote from another producer/agent or company.
After you receive alternative quotes and you compare prices, make sure that you
are comparing the coverage and price offered on an apples-to-apples basis. You
should take note of the difference in coverage as that may explain differences in
price or it may reveal that one company is willing to offer more coverage for a
similar price. Remember to inquire about the types and amounts of discounts that
might be offered and whether the premium quote includes any discounts.
One area you may want to check on is the deductible listed in the quote. A
difference in the deductible does make a difference in the premium that you may be
charged. If you increase the deductible, you are likely to pay a lower premium.
Remember, however, with a higher deductible you will pay more out of pocket
should you have a claim.
The rate quote obtained from an insurance producer/agent is an estimate of what
you will pay for the insurance based on the information that you have provided at
the time of the quote. While you are evaluating your options, It is a good idea to
avoid binding coverage before you make the decision to switch Auto Insurance
companies. Be aware that, if you choose to cancel your policy before it expires,
there may be a premium penalty which must be weighed in your decision (refer to
your current policy terms regarding cancellation).
Buying Insurance
Trả lờiXóaYou may buy insurance from an independent insurance producer/agent who
represents multiple companies, or from an exclusive insurance producer/agent who
represents one company.
An independent producer/agent earns commissions on sales of insurance products.
An independent producer/agent represents and sells the insurance products of
several, unrelated insurance companies.
An exclusive producer/agent represents only one insurance company (or group of
related insurance companies), and places all of their policies with that company (or
group of related companies). This type of producer/agent earns commissions or
salary directly from that company (or group of related companies).
SHOPPING FOR THE BEST VALUE
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In addition to making sales, it’s also a producer/agent's job to offer advice based on
your needs and to provide service after the sale.
Give Accurate Information:
Trả lờiXóaNo matter how you buy insurance, it’s important that you provide accurate
information to the procucer/agent acting on behalf of the insuring company.
Complete your insurance application fully and truthfully. If you leave out information,
or you do not provide accurate information, there may be adverse repercussions in
the event of a claim.
Know what you’re buying before you commit yourself. Ask for a clear and detailed
explanation and get the parameters of coverage in writing. Once you receive the
policy, make sure it’s what you intended to buy.
If you apply for and/or buy insurance over the phone, ask the representative to send
a copy of the application to you for your records. Ask for the name and title of the
person you speak with, then verify both the answers that you have given and the
exact types and amounts of coverage you have agreed to buy.
If you apply for insurance via the Internet, be sure to print a copy of your on-line
application for your records. Correct any errors right away. Many commercial web
sites now offer rate comparisons and instant on-line price quotes based on the
application you fill out on-line. If you decide to buy a policy through a web site, you
may, or may not be communicating with a producer/agent. Talking with a producer/
agent is recommended.
Should you choose to deal through a producer/agent, a good producer/agent will
answer your questions and be available if you need them.
Exercise care in your choice as it will prove to be beneficial. Choose wisely.
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If you are involved in an accident, it may be necessary to file an insurance
claim.
If the other driver caused the damage, you can file the claim with either your
own insurance company (a “first-party” claim) or the other driver's insurance
company (a "third-party" claim). If you file a first-party claim under Physical
Damage Coverage afforded by your policy, your insurance policy requires
your insurance company to meet all the conditions in your policy. In a thirdparty
situation, you do not have a direct contract with the other driver’s
insurance company. Please be aware that their primary obligation is to their
own policyholder.
It will most likely be to your ultimate benefit to file with your own company first.
While you may be responsible for a deductible under your own policy, should
the other driver be at fault, you will likely be reimbursed
if your company successfully receives payment from the
at-fault party’s insurer. It may be quicker to deal with the
other carrier if they agree that their driver is at fault, but
it will take much more time if they do not. The key is
whether you want to do the chasing or whether you want
your insurance company to do that for you. As your
insurance company has more resources and experience
in doing the chasing, going to your own company might be the better choice.
What Information Must I Provide ?
Trả lờiXóa• How, when and where the accident or loss happened, including the
names and addresses of any injured persons and any witnesses.
• Copies of any notices or legal papers you receive about the accident
or loss.
• Documents related to the claim, such as medical and auto repair
bills, a copy of the police report, or a bill of sale for the auto.
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Filing an Insurance Claim
Filing a Claim With Your Own Insurance Company
• Immediately report all losses directly to your insurance producer/agent
and/or insurance company.
• Immediately report a loss to the police, and later get a copy of the police
report.
• Show the damaged vehicle to the insurer before you have it repaired.
• Protect your auto from more damage, if possible. Your policy conditions
Usually require this.
• Cooperate with the insurance company's investigation.
• Review the section of your insurance policy that describes your duties and
other possible requirements in the event of a loss (sometimes referred to
as "Duties After A Loss").
1. When can I expect to hear from the insurance company after I
Trả lờiXóafile a claim?
Per New Hampshire Insurance Department rules, NH INS 1002.04 (b), your insurance
company must respond to you within 10 working days after they receive
your claim.
2. How many repair estimates must I submit?
Per New Hampshire Insurance Department Rules, NH INS 1002.14, you are
only responsible for the cost of one estimate for property damage to your auto.
The insurance company is liable for any further expenses if they request any
repair estimates after the first one.
3. What if I can’t drive my car and it needs to be left at a storage facility, will the
insurance company pay those fees?
Yes. If your auto is not drivable and it is towed to a storage facility, the insurance
company will pay for both. The insurance company must give reasonable
notice before they stop paying for auto storage charges.
4. Can an insurance company deduct for "betterment" (the amount that exceeds
the value of the old or used parts)?
Yes. If the repair of your auto involves parts that normally wear out such as
tires, mufflers, etc., replacement of these parts with new ones might require that
you pay the difference between the new value and the value of the part at the
time of the loss.
5. Can the insurance company deduct for things like unrepaired damage or rust?
Per New Hampshire Insurance Department rules, deductions can be taken if the
damaged part or portion of the auto had pre-existing damage or deterioration.
Companies are not required to make something better than it was prior to the
loss.
6. Can the insurance company use After-Market Replacement or non-original
equipment manufacturer (non-OEM) parts?
Per NH RSA 407-D:3 - No insurer shall require the use of after market parts in
the repair of an automobile unless the after market part is at least equal in like
kind and quality to the original part in terms of fit, quality and performance. Insurers
specifying the use of after market parts shall consider the cost of any
FREQUENTLY ASKED QUESTIONS
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modifications which may become necessary
when making the repair. The only exception to
this is:
Per New Hampshire Bulletin Number 99-014-
AB – After-Market Parts may not be required for
use on autos placed in service within the immediately
preceding two (2) years and which have 30,000 or fewer miles
recorded on the odometer.
7. How will the insurance company determine the value of my auto?
Companies may use guidebooks such as the one published by the National
Association of Auto Dealers (NADA) to decide your auto's retail
value, or an alternate statistical methodology. Factors that may be considered
involve the individual characteristics of your auto (such as current
condition) as well as general features such as age, make, and model.
A list of approved valuation methods can be found on the New Hampshire
Insurance Department web-site.
8. DoI have to pay a deductible when I file a claim?
If you chose a deductible when you bought your policy and you are filing
a claim with your insurance company, you will be responsible for the
amount of the deductible when you submit a claim.
9. Will the insurance company pay the costs of renting a car if my auto is
stolen or in an accident?
Possibly - If your auto is stolen or if you have an accident, most insurance
policies will reimburse you for the cost of a rental auto following a
waiting period (only if the auto is stolen), providing that you have purchased
Rental Reimbursement Coverage.
10. Does my insurance company have to pay if special equipment on my
auto is damaged?
Most auto policies only cover items that were factory installed. Specialized
equipment will not be covered unless you bought special coverage
for those items.
11. I had personal property in my auto when my auto was damaged/
Trả lờiXóastolen. Will it be covered?
If you had personal items, such as clothing, luggage or gifts stolen
from or damaged while in your auto, your Auto Policy would not normally
provide coverage. You need to consult with your insurance
company to see if optional coverage is available, or if any coverage is
included within your policy. Coverage for personal property that is
damaged or stolen may be provided by your Homeowners or Tenant
Owners Policy.
12. My insurance company and I can't seem to agree on the amount of
Trả lờiXóamy loss. What can I do?
If you and your insurance company can not agree on the amount of
loss to your vehicle, either of you may request an appraisal. This process
is referenced in your policy.
13. Who decides who is at fault and how much is owed?
New Hampshire has a "comparative negligence" law. This means that
some level of negligence can be assigned to more than one party involved
in an accident. Under this law, you can only collect for damages
from the other driver’s insurance company if you are 50% or less
at fault for the accident. The settlement can then be affected by the
percentage you were at fault.
You can always make a claim directly with your insurance company if
you have the appropriate coverage and let them sort out the issues of
negligence with the other driver’s insurance company.
14. What if the other driver’s insurance company denies my claim or I
disagree with their settlement offer?
If the other driver's insurance company denies your claim or you disagree
with their offer, the options available would be to make a claim
under your own policy or pursue a legal remedy.
15. When can an insurance company consider my auto a "total loss"?
XóaWhen the repair cost approaches or is more than the actual cash value
(or market value) of the auto, the auto is usually declared a "total
loss."
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Pursuant to NH Statute 261:22 VI (b), the exception states: “For
which the cost of repairing the vehicle is 75 percent or more of its
fair market value prior to the vehicle being damaged, if the damage
occurs during its model year or the 4 subsequent calendar years.
The total cost of repairing the vehicle shall not include the cost of
repairing, replacing, or reinstalling inflatable safety restraints, tires,
or entertainment systems.”
“Total loss vehicle shall mean either an unrecovered stolen vehicle
or a damaged vehicle.”
16. If an accident occurs and the other driver is at-fault, am I entitled
to compensation for the loss of use of my auto while it is being repaired?
If the other driver is insured, you are entitled to recover reasonable
costs of renting a comparable auto while you don’t have use of your
auto. This occurs if the other driver’s insurance company accepts
liability for the accident.
17. If my friend asks to use my auto for his own errands, will my Auto
Insurance cover him while he is driving?
Yes. All Auto Liability Policies in New Hampshire cover a "nonowner"
operator if they are driving the auto with the permission of
the "named insured."
18. Can a family member’s poor driving record
affect my premiums or insurability if my own
driving record is clear?
Yes. In the State of New Hampshire, the
definition of an insured includes household
family members.
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19. Must my son or daughter be added to my Auto Insurance
XóaPolicy once he or she is licensed?
Yes. The company has the right to charge for all licensed
operators in your household because they
are automatically covered under your Auto Insurance
Policy. A child at college is considered to be a
resident of the household.
20. Do I have the right to select the repair facility I want to complete the
repairs to my auto after it has been involved in an accident?
Yes, as long as your chosen repair facility can agree to a reasonable
repair cost with the insurance company. If they can not agree on a
repair cost, you may have to pay the difference between the adjuster’s
estimated cost to repair your auto and your repair facility’s actual
charge.
An insurance company can suggest an alternative repair facility which
it feels can repair your auto properly at an agreed rate or cost, but
they can not force you to take that option.
Per New Hampshire Rule NH INS 1002.17 (a), “every settlement
made or offered upon the basis of an appraisal conducted on behalf
of the insurer relative to motor vehicle insurance shall:
(1) Represent the fair and reasonable price in the area charged by
repair shops or facilities providing similar services with the usual and
customary guarantees as to materials and workmanship….”
21. I am dissatisfied with the repair work done to my auto by a repair
facility. What obligation does the insurance company have to correct
this?
If you chose the repair facility, you are responsible for making sure
the job is done satisfactorily. If you use the repair facility chosen by
the insurance company, then the insurance company would be responsible
to ensure that repairs are satisfactorily completed.
22. I was hit by an uninsured motorist. Do I have protection under my
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policy?
New Hampshire law requires that protection be provided to
an insured on their Automobile Policy in the event that an accident
occurs involving at-fault drivers of uninsured or underinsured
motor vehicles. This coverage is referred to as Uninsured
Motorist Coverage. This coverage applies to Bodily Injury
Claims, though your Collision Deductible may be waived
as well under certain conditions.
23. Do I have to be a resident of New Hampshire to buy Auto
Insurance in New Hampshire?
Per New Hampshire Rule NH INS Rule 1406.01, a residency statement
signed by the insured is required. This statement requires that
the insured be a resident of the State of New Hampshire, or indicates
that the insured is not a resident of New Hampshire, but the vehicle is
principally garaged in New Hampshire.
The only exemptions to the residency requirement involve your auto
that is exclusively garaged in New Hampshire (even if you do not reside
in New Hampshire) and/or relate to active military duty.
Failure to sign the residency form may result in the cancellation of
your auto policy