Is Maine a no-fault car insurance state?

If you own a vehicle in Maine or live there, you are required to have a certain level of minimum car insurance coverage.

Maine uses a fault-based system for determining how auto insurance claims are handled, which is the traditional way that most states use for settling claims.

Ultimately, the person who causes the accident is the one whose insurance company will handle paying out the claim amount. Keep reading below to find out what this means for you as a driver in Maine.

If you’d also like to get better auto insurance rates in Maine, start comparison shopping by entering your ZIP code above!

What is no-fault car insurance?

No-fault car insurance is the system that is in place for a minority of states in the U.S. No-fault insurance refers to how claims are handled after an auto accident.

With this system, each party involved in an accident would first file a claim with their auto insurance company to recover any damages for personal injuries.

The other type of system is based on tort or fault.

The party who caused the accident is the one whose auto insurance company will handle processing the claims for personal injuries from the accident. Maine falls into this category along with the majority of other states.

Is Maine a no-fault car insurance state?

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As a fault-based state, Maine allows you to recover from any party that was at fault for an accident. The caveat is that if you were also partly at fault for the auto accident, your total recovery would be reduced by the percentage of fault that you were responsible for in the accident.

One of the advantages of using a no-fault system is that you do not necessarily have to go to court to litigate many small claims from an accident. However, if the damages exceed a certain threshold, you may still need to file suit in court to recover the full amount of your damages.

In this respect, the no-fault system does not necessarily speed up the recovery process in accidents with any significant amount of property damage or personal injuries.

The broad categories of auto insurance coverage that you are required to carry under Maine’s system include:

• Personal injury
• Property damage
• Medical payments

Even though coverages are mandatory, this does not necessarily mean that all drivers will obey the law. Underinsured or uninsured motorist coverage can be very helpful in these scenarios when drivers decide they don’t want or need auto insurance.

Underinsured/uninsured motorist coverage will provide you extra protection if you are injured by a driver without sufficient auto insurance coverage to take care of the damages caused.

If the driver responsible for the car accident does not have valid car insurance coverage, you can always pursue a lawsuit against the driver personally. You would have up to six years in Maine from the date of the accident to file a lawsuit against the responsible driver.

If you are having difficulties recovering through an insurance company, you may need to file a lawsuit at a certain point to preserve the statute of limitations.

Auto Insurance Requirements in Maine

The minimum auto insurance requirements in Maine mandate that you carry at least $50,000 for injuries sustained by a single person and $100,000 to cover all of the injuries incurred in a single accident. Also, you are required to have at least $25,000 worth of coverage for any property damage caused.

There is also a requirement for you to have at least $2,000 in coverage for any additional medical payments that must be made after an accident.

To meet all of these requirements overall, you are allowed to show proof of a policy that carries at least $125,000 in total auto liability coverage. Compared to all of the other states in the U.S., Maine has the highest minimum coverage requirements that you will find.

Finding the Best Car Insurance Coverage in Maine

If you are searching for the best auto insurance coverage in Maine, this process is not difficult or time-consuming if you know where to start. The most crucial thing to keep in mind is that you will likely save the most money on your premium by comparing different policy rates.

You should compare the rates for at least two or three different companies. Comparing several companies can all be done online from the comfort of your home with a rate comparison tool.

When you are comparing different companies’ rates, make sure that you are looking at the same policy options across different companies.

For example, optional coverages can increase the amount of your premium. If you find that one company has a much lower rate, it could be because that company only provided you a quote for the most basic auto liability coverage without any additional options or sufficient policy limits for your situation.

Even if you have to pay more to increase your policy limits or add on extra coverages, this could ultimately save you money down the line if you ever have to file a claim. Paying for property damage or personal injuries out of your pocket can be a very expensive and frustrating proposition.

The best way to lower the amount that you are quoted for an auto insurance policy is to get as many discounts applied as possible to your rate. Some of the most popular discounts include:

• Good driver
• Good student
• Multi-line
• Low mileage
• Anti-theft for having safety features installed in your car or truck
• Driver safety education
• Multi-vehicle

Car Insurance Coverage in Maine

Car insurance is mandatory in Maine as in almost every other state. Maine is categorized as a fault-based insurance state because you always file a claim against the driver’s insurance who is the most at fault for an auto accident.

While the minimum coverage requirements in Maine for auto insurance are higher than any other state, you may still want to look into additional coverages or increasing the limits of your policy when shopping around for auto insurance quotes.

Before you commit to a rate, make sure that you have compared at least two or three different companies to get the best deal. Comparing rates from multiple companies can all be accomplished online by using a free and easy rate comparison tool right out of the gate.

Looking for better auto insurance in Maine? Try our FREE online quote tool and start comparison shopping today by entering your ZIP code below!