This bill establishes a new section in New Hampshire law, specifically RSA 412:16-a, which mandates that motor vehicle insurers offer premium discounts for vehicles that successfully pass annual safety inspections. Insurers are required to include provisions for these discounts in their rating manuals and file them with the insurance department. The inspections must verify key safety features such as headlights, taillights, tires, steering, and brakes, and insurers may also consider additional recommendations from shops, provided they are not necessary for passing the inspection. The bill emphasizes that discounts must be actuarially justified based on a demonstrable reduction in claims for vehicles meeting inspection standards.

Additionally, the bill stipulates that insurers must verify the completion of the inspection before applying any discounts and cannot penalize policyholders who opt not to undergo inspections or whose vehicles fail. There is no mandated percentage for the discounts; instead, they must be justified and filed with the insurance department. Importantly, the bill clarifies that policyholders are not required to obtain inspections for insurance purposes beyond what is mandated by state law. The act is set to take effect on January 1, 2027.