Two bills would change auto-insurance rules; supporters cite constituent safety, opponents warn of market effects

The committee heard two related proposals on motor-vehicle insurance and proof of financial responsibility. Representative Joe Barton introduced HP1568, describing it as a constituent-driven bill that would require minimum motor-vehicle insurance—he said the proposed minimum in the draft is $25,000 of coverage. Representative Veil Walsh introduced HB1558, which would require proof of financial responsibility at registration (insurance, a bond or a certificate of deposit) and authorize immediate suspension for failure to produce proof.

Supporters argued mandatory minimums protect victims and reduce uncompensated harms when uninsured motorists cause injury or damage. Opponents, including Mike McLaughlin for Allstate and other witnesses, said New Hampshire's system—where registration and license are not conditioned on mandatory insurance—has historically yielded a low uninsured-driver rate (cited at about 7.8% in testimony). They warned that mandating purchase and attaching penalties could increase premiums, distort markets and create perverse incentives.

Committee members discussed practical consequences, including how uninsured/underinsured motorist coverage functions and the interplay with health insurance for pedestrians. Representative Sullivan asked how a person without any auto insurance or health insurance would be covered if hit by an uninsured driver; committee members acknowledged limits and suggested litigation and health insurance as potential remedies in those cases.

Ending: The public hearing closed with committee members noting the longstanding policy trade-offs and expecting further consideration in subcommittee.