This bill amends RSA 264 by introducing new sections that require proof of financial responsibility, such as a valid motor vehicle liability insurance policy, to be presented at the time of vehicle registration in New Hampshire. Specifically, it inserts section 264:2-a, detailing the requirements for this proof, and adds section 264:3-a, which allows for the immediate suspension of a driver's license and vehicle registration if an individual cannot provide evidence of financial responsibility upon request by law enforcement. The suspension will remain in effect until the individual meets the proof requirements or resolves any claims related to an accident.

The legislation aims to improve public safety by ensuring that all drivers can cover damages resulting from their vehicle operation, thereby protecting responsible motorists. It is set to take effect on January 1, 2027, and is expected to have fiscal implications, including an increase in state revenue and additional costs for the Department of Safety to implement the new requirements. The bill also mandates system upgrades for the Department of Motor Vehicles (DMV) to enhance verification processes, requires training for law enforcement and DMV staff, and anticipates a significant increase in workload for the Division of Motor Vehicles. The estimated costs for implementation in FY 2027 are projected at $581,000, with potential increases in insurance coverage and premium tax revenue as a result of the new liability requirements.