No one likes spending more money than necessary, especially on insurance. Still, when told that you need to consider higher liability limits on your New Hampshire car insurance policy, you may wonder why.
NH is one of the only states in the country where auto insurance is not required to register a vehicle. This does not mean you would not have to pay for damages if you were in an accident, so auto insurance is always recommended.
If you purchase car insurance, you can choose different liability limits, but why buy higher limits?
The reason is that just because the state does not require insurance, any person you injure or whose property you damage will certainly hold you financially accountable if you are found legally responsible in a car accident.
This could mean you pay out of pocket for repairs of property, whether it's a car, two cars, a traffic signal, or a bus. You could also be held legally responsible for any medical bills, loss of income, and/or pain and suffering. That could put you in debt for years!
If you say to yourself, “They can’t get blood from a stone,” as agents, we have seen future wages attached and assets liquidated to settle a debt.
🤕Bodily Injury (BI): The bodily injury coverage on your auto policy helps pay for another person's physical injuries for which you are held legally responsible due to a car accident. It can include coverage for another's medical expenses, loss of income, pain and suffering, and legal fees.
Coverage is typically written with two limits. The first limit applies to each person, and the second applies to each accident.
Example: $25K/$50K
$25K: This means that the most the policy will pay, should an insured be found legally liable in an accident, would be up to $25,000 for one person's bodily injury, pain and suffering, and loss of income. If only one person is injured, the policy would only pay up to $25K.
$50K: This means that the most the policy will pay, if an insured were found legally liable in an accident, is up to $50,000 to all injured parties, including their pain and suffering and loss of income. This applies to everyone but the insured(s). If two or more were injured, the policy would pay no more than $50,000.
Scenario: You are driving on a snowy day and slide on black ice and side-swipe a minivan carrying four kids. The most the policy would pay for all five people injured would be $50,000.
What if the person driving was a professional chef who could no longer stand at her job all day and required hours of physical therapy? What do you think the parents of those four kids believe their children's injuries and lost potential are worth?
🚗Property Damage (PD):
Sometimes the property damage liability limit is shown on a quote or policy alongside the bodily injury limit ($25K/$50K,$25K) and sometimes on its own line. ($25K property damage). Regardless of how it is listed, it means the same thing.
The limit listed means that the most the policy would pay, should an insured be found legally liable in an accident, would be up to $25,000 for any property you damage. This can mean one car, two or more cars, guard rails, traffic signals, telephone poles, etc. The minimum purchase amount in NH is $25,000.
In the twenty-plus years I have worked in insurance, this limit has not changed, but the cost of cars certainly has.
Example: According to Cars.com and Edmunds, a base model Toyota Rav4 in 2000 was $18,298; in 2025, a base model Toyota Rav4 starts at $29,800.
| Year | Make/Model | MSRP | Property Damage Limit of $25K |
| 2000 | Toyota Rav4 | $18,298 | May be adequate if total loss |
| 2025 | Toyota Rav4 | $29,800 | Not adequate if total loss |
We illustrate a Toyota Rav4 as a popular vehicle in 2000 and 2025. Now consider electric cars, which are even more expensive and did not exist in 2000. Would $25,000 cover the cost to repair or replace a modern vehicle today?
Example: $100,000 CSL
This means that the most the policy would pay, should an insured be found legally liable in an accident, would be up to $100,000 for all injuries (including pain and suffering and loss of income) and property damage.
Scenario: You are driving on a snowy day and slide on black ice and side-swipe a minivan carrying four kids. The most the policy would pay for all five people injured and damage to the minivan would be $100,000.
Unfortunately, it is not a cut-and-dry answer, as it depends on factors such as the type of car you insure, your driving history, age, and where you live. The good news is that an agent can easily provide various coverage limits and pricing. Increased coverage is often less than clients expect, especially when you break the increase down into monthly installments.
What HPM recommends:
At HPM Insurance, we rarely write limits below $100K/$300K/$100, but we typically write $250K/$500K/$100 or $500K CSL.
Don't wait until after a claim to discover you could have had more protection for just a little extra cost. Contact HPM Insurance today for a personalized quote on higher liability limits, and let us help you find the coverage that fits your needs and budget.
Get your quote now—peace of mind is just a call or click away!