A New Hampshire legislator and respected trial attorney wants to change the way insurance payouts work in his state. Representative David Nixon (D) has introduced a bill – HB 198 – to correct something he feels is unfair: the maximum payouts drivers can receive if the at-fault driver in an accident is un- or under-insured.

Currently in Nixon's state, it works like this:

If you are driving along and another car slams into yours, leaving you with personal injuries totaling $200,000, and the at-fault driver has coverage up to $100,000, and you also have coverage that pays up to the same amount if you're hit by an uninsured motorist, you can only collect $100,000.

Nixon feels that it would be more equitable if you could collect all $200,000, and says that the reason it isn't allowed has to do with basic unfairness in the law. He told the press, "Most people think they are fully insured but don't realize they cover nothing under their policy if the at fault person has the same amount of coverage."

Opponents of Nixon's bill, including leaders of the New Hampshire insurance industry, think changing the way payouts are handled would be detrimental, however, causing an across-the-board increase in the relatively low auto insurance premiums residents of the state currently enjoy.

A lobbyist with the New Hampshire Association of Domestic Insurance Companies, George Roussos, explained that drivers are currently free to purchase as much uninsured motorist coverage as they want, in order to be completely protected. In testimony before the House Commerce Committee, he added, "This bill will add costs at a time when people can least afford to pay for them. There is no need for this bill. You can buy this protection, if you want it, by purchasing more coverage."

David Withers, an actuary with the Insurance Department, agreed that the bill Mr. Nixon introduced would cost all customers money. "Actually, there will be more losses paid, and the premiums will be higher no matter what the new limits are," he said. Unlike New Hampshire, some other states allow drivers to "stack" or "piggyback" the medical damages they're allowed to collect upon if they have multiple cars on the same policy. Nixon had a separate bill (HB 200) introduced, that would do just that.

Currently New Hampshire does not have ANY mandatory requirement for auto insurance, though consumers who do purchase it must include un- or under-insured motorist coverage in their policies.