How To Buy Maine Car Insurance

Car insurance is a necessity if you plan to drive and own a car. Each state in the US has its own mandatory requirements and documentation when it comes to automobile insurance, so it is necessary for you to be aware of the specific regulations applicable in the state where you reside. If you are a resident of the state of Maine, here's the lowdown on vehicle insurance requirements in the state...

Basic information to be provided with your insurance application

Driving record for the previous three to five years - This will determine the amount of premiums you will need to pay, the cleaner the driving period, the lower will be the premiums payable.

Area in which you reside or where the vehicle is garaged - This becomes relevant when you reside or garage your car in an area of Maine where the insuring companies have historically seen a higher percentage of claims than other areas. For example, areas with a high density population as compared to a low density area.

Age, gender and marital status - This helps the insurer to create a risk profile for its customers. Premium rates will accordingly vary, depending on your age and gender and the past profiles where the insurance provider has paid out the maximum number of claims.

Previous insurance coverage, if any - To check if you've defaulted on premium payments in the past or the number and type of claims you have made with a previous provider.

Vehicle usage, make and model - The mileage and the length of the driving period impact the premiums you will have to pay. Extensive driving and higher mileage mean higher premiums and vice versa. In addition, the model and make of the vehicle will also influence the insurance company's final decision on premium rates. Here, as in the case of driving record or territory, historical data is used to determine if a lower or higher premium is to be charged for a particular make and model of vehicle.

Details of fully licensed drivers in your family - this does not include individuals holding a learner's permit, but the insurance provider does take into account future drivers who may become eligible to drive while the insurance policy is in force.

Mandatory requirements as per law

• Liability coverage, coverage for uninsured motorists and medical payment coverage are the three mandatory and minimum insurance requirements as per Maine law.
• Minimum liability coverage required under Maine law is as below:
  • Bodily injury or death per person - $50,000
  • Bodily injury or death per accident - $100,000
  • Property damage - $25,000
• Coverage for uninsured/underinsured motorists applies when you are involved in an accident where the offending driver has no or a lower amount of insurance than the mandated amount. The required coverage is $50,000 per person and $100,000 per accident.
• Coverage for medical payments includes all reasonable medical expenses and/or funeral expenses, if you or a member of your family are hurt or killed in an accident, whether caused by another person or by yourself or a member of your family.

Other insurance coverage (not mandated by Maine law, but preferable to have, for your own safety and peace of mind)

• Collision coverage - Provides coverage for damages caused in collisions with other vehicles or stationary objects.
• Comprehensive coverage - cover against all other types of damage barring collision. This covers damage caused by natural disasters such as fire, floods, etc, plus damages caused by non-vehicular damages such as cracked/broken windshields when the vehicle is left outdoors, etc.
• Coverage for gadgets and devices such as music systems, phone, anti-theft devices, remote locking and sensor systems, etc.
• Rental reimbursement - Covers the cost of renting a vehicle while your automobile is being repaired.
• Coverage for towing and labor charges - This type of coverage is preferable if you are not a member of any auto club, such as AAA. However, you cannot have double coverage under your insurance policy and an auto club membership; you can only select one of these 2 options to take additional insurance coverage.
• Loan/lease coverage - If your vehicle is taken under a finance or lease scheme and the money owed to the financier is greater than the current actual cash value of the car, in case the car is totaled or completely damaged because of a collision or other accident.

Discounts on insurance cover

In many cases, insurance companies offer special discounts to their customers, some of which are mandated by law, and others which the insurance companies offer as part of their own marketing strategies. It is not necessary that all insurance companies provide the same or similar set of discounts. However, some of the regular discounts offered by most insurance companies in Maine include the following:

• Discounts for multiple vehicles being insured with the same insurance company.
• Discounts for enrolling and completing state-approved driver education courses. The law mandates that insurance companies must offer discounts to citizens over 55 years of age, who've provided proof of passing an approved accident prevention course. The discount is not available if the insurer or any family member was involved in an accident or traffic violation in the previous three years. The discount cannot be offered if more than 36 months have lapsed since the course was completed as well.
• Discounts for ‘good students', i.e. students with an average grade of B or better, who are considered responsible drivers and as such are low insurance risks.
• Discounts for safety and anti-theft devices installed in your vehicle(s), since such devices lower the risk of claims and save the insurance company money in the long term.
• Discounts offered if the policy holder also takes insurance packages other than automobile insurance - life, home, property, etc.
• Discounts can also be offered to insurers who maintain a clean driving record, maintain regular premium payments or prompt renewals of policies, as also for insurers who have low mileage usage for their vehicles.

You can get additional information on automobile insurance packages available in the state of Maine by contacting the property/casualty department of the Maine Bureau of Insurance. Do your homework before you buy insurance, compare the coverage and prices offered by different insurance companies, check with your friends and peers on how they've met their insurance requirements, and read up on the large amounts of information available in community resources such as libraries, newspapers, trade directories, etc, plus the Internet itself. This should help you buy the best Maine car insurance package that is suitable for your individual requirements.