This bill mandates that all registered motor vehicles in New Hampshire must maintain a liability insurance policy that meets specified minimum coverage limits. The new section, 264:15-a, outlines that no vehicle shall be operated unless the owner has insurance providing at least $25,000 for bodily injury or death of one person, $50,000 for two or more persons per accident, and $25,000 for property damage. Proof of insurance must be presented at the time of vehicle registration and upon request by law enforcement. Failure to maintain active insurance will result in the suspension of the vehicle's registration and civil penalties of $250 for a first offense and $500 for subsequent offenses. Additionally, the Department of Safety is authorized to adopt rules for electronic verification of insurance coverage.

The bill also includes provisions for the implementation of these requirements, which may necessitate updates to the current systems used by the Division of Motor Vehicles (DMV) for tracking insurance coverage. The anticipated costs for system maintenance and staffing to manage the increased workload are estimated to be significant, with a total of $444,000 projected for FY 2027. Furthermore, the bill is expected to generate additional revenue through increased insurance premiums, with estimates suggesting an increase in written premiums and corresponding premium tax revenue. The act is set to take effect on January 1, 2027.