FAQ: Why Underinsured Motorist (UIM) Insurance is Crucial in New Hampshire – A Guide to Coverage, Stacking, and NH Laws
New Hampshire drivers often face serious accidents where the at-fault party's insurance limits are far too low to cover real damages—medical bills, lost income, pain and suffering, or even wrongful death claims. Underinsured motorist (UIM) coverage can make a critical difference. This FAQ explains what UIM is, why it matters in NH, how “stacking” works (or doesn't), and the key statutes that govern it.
Use search terms like “UIM insurance New Hampshire,” “stacking auto insurance NH,” or “RSA 264:15 explained” to find this guide.
What is Underinsured Motorist (UIM) Insurance in New Hampshire? UIM coverage protects you when you're injured by a driver whose liability insurance is not enough to pay for your damages. It is paired with uninsured motorist (UM) coverage, which applies when the at-fault driver has no insurance or is unidentified (hit-and-run). In New Hampshire, auto insurance policies must include UM/UIM coverage at limits equal to your bodily injury liability coverage unless you reject it in writing.
NH RSA 264:15 requires this protection for people “legally entitled to recover damages from owners or drivers of uninsured motor vehicles.”Because New Hampshire does not require every driver to carry liability insurance (only financial responsibility if they choose not to), many motorists are uninsured or underinsured. UIM provides a vital safety net.
How Does UIM Coverage Work in a New Hampshire Accident?
New Hampshire uses a limits trigger for UIM: coverage applies if the at-fault driver's bodily injury liability limit is less than your UIM limit.
Example:
- Your damages = $75,000
- At-fault driver's liability limit = $25,000 per person
- Your UIM limit = $50,000 per person
Important: Before signing any release with the at-fault driver's insurer, review RSA 264:15(V), which warns that doing so may affect your right to UIM benefits. Always consult your own insurance company or an attorney first.
What is Stacking in UIM Insurance, and Is It Allowed in New Hampshire?
Stacking means combining UIM limits from multiple vehicles or policies to increase the total available coverage. There are two main types:
- Intra-policy stacking — combining limits from multiple vehicles on the same policy
- Inter-policy stacking — combining limits from different policies (e.g., your policy + a household member's policy)
Bottom line: Check your declarations page and policy endorsements. Higher premiums may apply if stacking is allowed, but many policies cap recovery at the highest single limit.
Why Should New Hampshire Drivers Choose Higher UIM Limits?
The state minimum liability limits are often $25,000 per person / $50,000 per accident—far too low for serious injuries or fatalities. A single major crash can easily exceed $100,000 in damages. You can purchase higher UIM limits (e.g., $100,000/$300,000 or more) or add an umbrella policy that includes matching UM/UIM coverage. Without adequate UIM, you may be forced to pursue the at-fault driver's personal assets, which is frequently not viable.
Can I Reject UIM Coverage in New Hampshire?
Yes, you can reject UM/UIM coverage or select lower limits in writing (RSA 264:15(I-a)). However, rejecting or minimizing this protection is generally not recommended, especially since the additional premium for higher limits is usually modest ($20–50 per month for significantly better coverage).
What Should I Do After an Accident If I Have a Potential UIM Claim?
- Report the accident to your insurance company immediately.
- Obtain the police report and gather medical records, bills, and evidence.
- If you have multiple policies or vehicles, identify them early.
- Do not sign any release with the at-fault driver's insurer without understanding its impact on your UIM rights.
- If the claim is disputed, your policy may require arbitration or allow a lawsuit.
Call Joseph Kelly Levasseur at 603-622-7575 for a free phone consult if you have been injured by an under insured or not insured driver.
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