Maine Auto Insurance

The automobile insurance premium you pay is a portion of the expenses of owning an automobile. This overall expense includes fuel, repairs, maintenance, and the insurance required by the state in which you live to drive and use the roads.

Save money on auto insurance by comparison shopping first. Simply enter your ZIP code into the FREE tool above now!

Fortunately, living in Maine is an advantage. The Insurance Information Institute (III), an organization that provides insurance statistics, indicates that on average Maine is one of the states with the least expensive automobile insurance.

See the statistics at the Insurance Information Institute website.

Maine's Requirements for Automobile Insurance

Car insurance is a state issue rather than a federal one, so requirements for automobile insurance are set by the state's legislature. For information about Maine's insurance community, go to their website.

In Maine, the following limits of liability must be purchased to qualify for a driver's license:

• Bodily injury – your legal responsibility to others in an accident for injury to others - $50,000 per person/$100,000 per accident
• Property damage – your legal responsibility in an accident for the property of others - $25,000
• Medical payments coverage – helps pay the medical expenses in an accident for you and your family - $2,000

Penalties for not purchasing automobile insurance and having it in force when asked by a police officer:

• $100 to $500 fine, depending upon the frequency
• Suspension of driving license and registration
• Suspension of right to apply for new licenses or registration

Protecting Your Own Car

States legislate the purchase of liability insurance, but it is in your best interest to purchase insurance to protect a large investment of your own – your automobile. Cars are vital to American life in our day for a number of reasons and few of us are able to replace them easily in the event of an accident.

The following coverage is recommended to protect you and your lender, if any:

• Comprehensive coverage which pays for damage to your vehicle from falling objects, vandalism, theft, weather, and running into animals. A deductible usually applies – from $250 to $1,000 depending upon your needs
• Collision coverage which pays for damage to your vehicle from colliding with objects such as other cars, fences, light fixtures, or objects

Suggested Limits of Liability and Physical Damage for You and Your Vehicle

The limits of liability required by the state are often not adequate to protect your interests if you are adjudged guilty of an accident. Remember that the liability coverage needs to pay for attorney's fees, possible rehabilitation fees, or death expenses.

Consider carrying the following coverage on your vehicle:

• Bodily injury liability - $100,000 per person/$300,000 per accident
• Property damage liability - $50,000 per accident
• Medical payments - $2,000

Suggested additional coverage is:

• Uninsured/Underinsured motorists coverage - $100,000/$300,000 – protects you in the event that you have an accident with someone who either doesn't have insurance or doesn't have enough insurance
• $500 deductible comprehensive
• $500 deductible collision

Saving Money on Car Insurance

There are a number of ways to save money on car insurance, but the most useful is to examine premiums with at least three other insurance companies. Rates vary from company to company, depending upon a number of factors, including the company's experience in your areas.

Be aware of the following factors that will affect your insurance rates:

• Credit scores – most states allow companies to adjust rates relying upon the credit rating of insurance purchasers
• Driving record – yours as well as others who drive your cars
• Marital status, age, and gender of drivers – young drivers and those over 65 pay more for insurance
• Use of your vehicle – commuting, pleasure only – and your estimated annual mileage
• Previous claims and driving infractions
• Location of garaging – people in rural areas usually pay less than in urban areas

Ask your insurance agent about available discounts. Some common discounts, available from various companies, are:

• Good student discount
• Discount for having both homeowners and auto insurance with one company
• Multi-car discount
• Larger deductibles can reduce your premiums
• Compare the value of your vehicle with the amount you pay for comprehensive and collision. Decide if this coverage is economically sound.
• Discounts for certain occupations and circumstances– educators, graduates from certain colleges, military personnel

Getting Quotations for Insurance

Getting quotations from three different insurance companies is a matter of placing applications with those companies. Information you will need to have before getting quotations is as follows:

• Names, dates of birth, and driving license numbers for every driver in your household
• Driving records for each individual
• Make, model, and VIN number for all vehicles owned
• Miles driven for each vehicle and how it is used
• Your home address

You will be asked for your Social Security number, telephone number, and e-mail address. The Social Security number allows the company to check your credit rating, the telephone number will be used to call you, and the e-mail address will be used to follow up on the quotes.

Have the limits of liability you want ready. Apply for the same amount of coverage from each company so your quotes will be readily comparable.

Checking the Insurance Companies

There are a number of ways of examining the status of insurance companies and complaints against them in the nation as well as across your state.

• Go to the Bureau of Insurance for the state of Maine – for state-specific information
• Consult the NAIC – for nationwide information
• Go to A.M. Best to check the financial ratings for insurance companies
• Ask questions of your local BBB to determine if there have been complaints

Examples of Why to Get Three Quotes for Auto Insurance

Obtaining quotes for car insurance helps. Here are examples of three different quotes for car insurance in Maine.

These quotes are for an older individual living in Augusta, Maine, owning a 2007 Ford Taurus. The individual is female with no accidents or tickets on her record. Policy limits are as follows:

• Bodily injury - $100,000/300,000
• Property damage - $50,000
• $2,000 medical payments
• $100,000/300,000 uninsured/underinsured motorists coverage
• $500 deductible comprehensive
• $500 deductible collision

Note- with a vehicle of that age, it may not be reasonable to purchase comprehensive and collision coverage, but that is up to the individual.

Premiums:

• Insurance Company A - $56.24 per month/$324.00 every six months
• Insurance Company B - $166 per month/$1,261.00 every six months
• Insurance Company C - $65.36 per month/$376.00 every six months

This is an example of how comparison-shopping for auto insurance can potentially save you a great deal of money.

All the insurance premiums quoted were through companies licensed in Maine with excellent financial standing and with very few complaints. Carefully examine your insurance at least annually to determine if your policy is still competitive in the insurance market.

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