New Hampshire HB 1558: requiring proof of insurance or adequate financial responsibility for vehicle registration.

Bill Text

HB 1558-FN - AS INTRODUCED

2026 SESSION

 26-2850

 06/08

HOUSE BILL 1558-FN

AN ACT requiring proof of insurance or adequate financial responsibility for vehicle registration.

SPONSORS: Rep. Vandecasteele, Rock. 25; Rep. Nagel, Belk. 6; Rep. L. Walsh, Rock. 15; Rep. Ball, Rock. 25

COMMITTEE: Commerce and Consumer Affairs 

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ANALYSIS

 This bill establishes a requirement to provide proof of financial responsibility at the time of motor vehicle registration and authorizes immediate suspension of license and registration for failure to produce such proof upon lawful request.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2850

 06/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT requiring proof of insurance or adequate financial responsibility for vehicle registration.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Purpose. The general court finds that while New Hampshire does not require every driver to maintain automobile insurance, RSA 264:3 requires that all drivers be financially responsible for damages caused by their operation of a motor vehicle. Current law enforces this requirement only after an accident has occurred. To protect responsible motorists and the public, this act requires that drivers demonstrate proof of financial responsibility at the time of vehicle registration. This maintains individual choice while ensuring that no motorist operates a vehicle without the ability to pay for damages. 

 2 New Sections; Motor Vehicles; Financial Responsibility; Proof Required at Registration. Amend RSA 264 by inserting after section 2 the following new sections:

 264:2-a Proof of Financial Responsibility Required at Registration. 

 I. No motor vehicle shall be registered in this state unless the applicant provides one of the following to the division of motor vehicles: 

 (a) Proof of a motor vehicle liability insurance policy in effect which meets the minimum coverage limits established in RSA 264:20; or 

 (b) A certificate of deposit, surety bond, or other evidence of financial responsibility in an amount not less than the minimum liability limits set forth in RSA 264:20, filed with the state treasurer and verified to the division of motor vehicles.

 II. The division shall record such proof at the time of registration and shall adopt rules pursuant to RSA 541-A for implementation. 

 3 New Section; Suspension for Lack of Proof. Amend RSA 264 by inserting after section 3 the following new section: 

 264:3-a Suspension for Lack of Proof. 

 I. Any person operating a motor vehicle who, upon lawful request by a law enforcement officer, fails to produce evidence of financial responsibility as required by RSA 264:2-a shall have their driver’s license and registration privileges suspended immediately by the division of motor vehicles. 

 II. Such suspension shall remain in effect until the person provides proof of financial responsibility in compliance with RSA 264:2-a, or until all claims and judgments arising from the accident have been satisfied in accordance with RSA 264:3. 

 III. The division of motor vehicles shall adopt rules pursuant to RSA 541-A for administration and enforcement of this section.

 4 Effective Date. This act shall take effect January 1, 2027.

 LBA

 26-2850

 12/5/25

HB 1558-FN- FISCAL NOTE

AS INTRODUCED

AN ACT requiring proof of insurance or adequate financial responsibility for vehicle registration.

FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.

 Estimated State Impact

FY 2026

FY 2027

FY 2028

FY 2029

 Revenue

$0

$200,000 Increase

$300,000 Increase

$400,000 Increase

 Revenue Fund(s)

General Fund

 Expenditures*

$0

$581,000

Indeterminable

$300,000+ Per Year

 Funding Source(s)

Restricted - Highway Fund Cost of Collections - Per the state constitution, costs associated with the collection/administration of highway fund revenue by the Department of Safety is deducted prior to funds being credited as unrestricted highway fund revenue

 Appropriations*

$0

$0

$0

$0

 Funding Source(s)

None

 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill

METHODOLOGY:

This bill establishes a requirement to provide proof of financial responsibility at the time of motor vehicle registration and authorizes immediate suspension of license and registration for failure to produce such proof upon lawful request. This bill will have an impact on both the Department of Safety and insurance premium tax revenue col