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In the state of Maine, drivers are required to insure their cars against accidents. Immediately after you purchase a car, you are required to register it. You need a Maine car insurance to do so. Read this article to get more insights about Maine car insurance law, requirements, coverage types, insurance rates and discounts.
Maine Car Insurance Requirements
All drivers in Maine are required to hold:
- Liability insurance
- Medical payments coverage
- Uninsured/underinsured motorist coverage.
The state of Maine requires all drivers to purchase liability insurance. The following are minimum limits of liability insurance as stipulated under Maine car insurance laws:
- $50,000 for death or bodily injury per person
- $100,000 for total death or injury per accident, for multiple accident victims
- $25,000 for property damage.
Medical Payments Coverage
Maine also requires all vehicles owners to hold a medical insurance coverage of not less than $2,000. This car insurance covers accident related costs and funeral insurances. Medical payments insurance cover will pay your medical bill expenses or your funeral expenses even if you are found responsible for that accident.
Uninsured Motorist Coverage
UM or Uninsured motorist insurance cover is mandatory for all drives in this state. This insurance protects you if the following incidents happen to you:
- You are the victim of a hit-and-run accident
- If a fault driver without car insurance causes an accident
- The fault driver has limited insurance cover.
Uninsured motorist insurance covers the cost of injury caused to your family members or passengers. This insurance coverage does not pay the costs of property damage.
Required Uninsured Motorist Limits
Uninsured motorist insurance must be equal the amount of liability insurance unless you go for lower limits if available; in this event you must sign a rejection form available from your car insurance company. This form must be signed before your car insurance policy comes into effect. NOTE: Even if you go for an uninsured motorist coverage limit that is lower than your Maine liability limits, you cannot get lower limits than the minimum coverage of liability insurance limits.
Optional Car Insurance in Maine
The above car insurance covers cannot give you enough protection against the cost incurred during accidents. You need other additional Maine car insurance coverages. If you are shopping for insurance cover for your car, consider these optional car insurance coverages:
- Collision – Insurance cover that helps pay for damages made to your car after an accident
- Comprehensive – Insurance cover that pays for damages resulting from all accident related events such as fire, floods etc.
- Rental reimbursement coverage – This insurance coverage pays part of your rental car expense resulting from the accident that it was involved in
- Towing and labor coverage – This insurance coverage pays for the cost of expenses involved when your car is towered.
- Loan/lease coverage – Covers the remaining loan or lease after an accident.
If you are interested in any of the above optional car insurance coverage, you can talk to your car insurance agent to help you get started.
Umbrella policies will help you obtain higher liability limits without paying higher insurance premiums. An umbrella policy will help you cover the cost that isn’t covered by standard insurance policy. To get this policy, you are required to purchase the following limits of your Maine car liability insurance:
- $250,000 per person
- $500,000 per accident.
Questions and Concerns
Maine Bureau of Insurance (MBI) is the body offering any assistance that you may seek regarding to Maine car insurance. But bear in mind that MBI cannot:
- Act as a lawyer or provide legal advice
- Decide on medical determinations
- Determine who is at fault when the accident occurs
- Estimate the repair expenses or cash value for your vehicle
- Force a car insurance company to comply with insurance requirements if no law was broken
- Resolve a dispute between car insurance parties.
The bureau of insurance is the body that is responsible for dispute resolutions. You can file your complaint at this bureau online or through mail. If you chose the mailing option, you are required to fill and send a dispute complaint form to the address below: Bureau of Insurance 34 State House Station Augusta, ME 04333
Car Insurance Rates in Maine
Almost all insurance companies use certain factors when calculating your Maine car insurance rates. These factors include:
- Driving record
- Marital status
- Previous coverage, if there is any
- Use of your vehicle
- Your car’s Make, Model and Year
- Number of drives to be covered
- Previous claims.
When shopping for car insurance coverages, always go for those companies that offer discounts. Some of the discounts commonly offered by many car insurance companies include:
- Good student
- Anti-theft device
- Safety device
- Low mileage
- Multiple vehicles
- Driver education
- Multiple policies (auto and home).
You can save money by asking discounts, but remember the best way is to keep a clean driving record.
Most Stolen Cars in Maine
Driving a car that is always targeted by thieves may increase your car insurance rates. According to www.nicb.org, the 2013 most stolen car in Maine include:
- Ford Taurus and Ford Pickup (Full Size)
- Chevrolet Pickup (Full Size)
- GMC Pickup (Full Size)
- Ford Focus
- Jeep Cherokee/Grand Cherokee
- Honda Civic
- Subaru Legacy
- Dodge Caravan
- Dodge Pickup (Full Size).