Auto Insurance in Maine: Overview and Regulations

Every vehicles owner in Maine is required to satisfy the financial responsibility act which provides means of paying for injuries, death, or any damages caused by an accident. Additionally, purchasing an auto insurance policy is the easiest and most convenient way to provide proof of financial responsibility. As in any state in the country, Maine also imposes minimum liability coverage that auto insurance policies should offer to its consumers. These include the $50,000 liability coverage for bodily injuries or death caused to any one person, $100,000 coverage for total injuries or death per accident, and $25,000 coverage for damages on properties caused by the accident. Apart from these coverage, the state also requires auto insurance policyholders to carry coverage for medical payments amounting to $2,000 and to purchase underinsured/uninsured motorist coverage. The last coverage was mandated by the state after discovering that a number of motorists still opt not to purchase auto insurance policies despite being required by the state.

A policyholder is required to include into the policy members of the household which owns a driver’s license. In an event that the household has a teenage driver, policyholders may see the premium rates increase, as most insurance companies consider teenagers as high-risk drivers that are prone to accidents and committing traffic violations. The state of Maine allows insurance companies to adjust the rates in considering to the age and experience of all resident drivers. Higher rates may also be imposed for those who have medical conditions that might hinder their abilities to operate a motor vehicle. To determine this, the policyholder and the members of the household may be asked to answer a medical questionnaire.

The state has also imposed specific scenarios and situations in which the insurance provider is allowed to cancel or non-renew an auto insurance policy which has been enforced for more than 60 days. Before this specific time period, the insurance provider is allowed to cancel a policy for any reasons it deemed reasonable. However, an auto insurance provider must not refuse an applicant because of age, driving status, or credit information. Beyond the 60 day period, cancellation may only be permitted if it’s due to nonpayment, misrepresentation of facts during the application process, and the suspension of the driver’s license of the policyholder or any member of the household. It would also be good to know that there is no grace period imposed in Maine, so policyholders are highly encouraged to pay their premiums on or before the monthly deadline. Additionally, if an applicant has a record of several cancellations due to nonpayment, the insurance provider has the right to refuse coverage or demand payment for most of the premiums in advance. The reasons for cancellation mentioned above, as well as convictions or occurrence of accidents, may also be used for non-renewal of an auto insurance policy. In these cases, the provider is required to notify the policyholder in writing several days before cancellation or non-renewal is imposed.

Maine is considered as one of the states with lowest cost of auto insurance policy. The state regulates the premium rates offered by insurance providers by requiring the providers to submit any rates they wish to impose to the Maine Bureau of Insurance. The bureau will review the rates within 30 days prior to its effective date and might not allow a certain rate to be used if deemed unreasonable. There are also numerous insurance products offered by various providers, leading to healthy competition that ultimately benefits the consumers. The Maine Bureau of Insurance also assists in providing information regarding the financial stability and operations of an insurance company, as well as hear out complaints and requests for hearings from consumers.

We help our Maine customers in Portland, Lewiston, Bangor, South Portland, Auburn, Biddeford, Augusta, ME and other cities in the Pine Tree State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Maine insurance agent and broker network, you can easily compare rates from multiple insurers.

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