David Wunsch: Does lack of car inspections impact insurance rates in NH?

To The Daily Sun,

I’ve have been following the news coverage about the State of New Hampshire eliminating the requirement for annual automobile inspections, as well as editorials in The Daily Sun on this topic.

I am on the fence regarding inspections. It can be chore to arrange to have your car inspected, which sometimes results in additional unexpected costs to ensure the car passes. However, it likely makes driving safer when cars on the road have working brakes, lights, and tires.

However, one of the major issues related to the inspection dilemma that I’ve not seen discussed much is the probable impact on auto insurance rates, which are based on location (e.g., rural versus urban), risk analysis, and other factors. I appreciate that New Hampshire does not technically require insurance, but with the liability risk, I surmise most people carry auto insurance. I recently relocated back to New Hampshire, and I found that my auto insurance for the same car and coverage is only about a third of what I was paying in another state. A recent news article on national insurance rates listed New Hampshire as having some of the lowest auto insurance rates in the country, likely attributed in part because we have an auto inspection, leading to a lower incidence of accidents and claims. Perhaps New Hampshire’s rates are also competitive because insurance is not required.

So what will insurance company actuaries decide for New Hampshire after automobile inspections are no longer required? It would be informative to read an editorial from an insurance representative who could share insights as to how the corporate insurance world will likely respond to this complicated situation. However, my hunch is I would rather schedule an inspection and pay $50 once a year to save $500 on auto insurance.

David Wunsch

Laconia