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Required Auto Insurance in Maine

Required auto insurance in Maine is the area of coverage that every ME driver must include in their policy according to state law. Auto insurance is mandatory in the state of Maine. Financial responsibility is a big issue and drivers in the state must have compliant policies that meet all of the specifications put into place by state lawmakers for monthly car insurance factors. Insurance companies selling policies here can't even offer coverage that does not meet these standards to drivers in the state. All of us auto owners and motorists need to be informed and up to date on state rules and regulations for auto coverage to make sure we meet our obligations and protect our families and our vehicles from the risk of loss.

Insurance Coverage Required in Maine

Maine auto insurance law requires three mandatory areas of protection for every policy sold and administered in the state. Liability, uninsured motorist, and medical payments coverage are all required for policy holders in the state. Liability coverage can be purchased as a single or split limit policy, unlike in most states where drivers do not have any such choice. Split limit policies have separate limits of coverage and deductibles for single victim bodily injury, single accident bodily injury, or single accident property damage. The minimum limits of liability insurance coverage for Maine drivers are 50/100/25, with each number representing in thousands of dollars the minimum acceptable level of coverage allowable by law for each of the three parts of the policy, respectively. Alternately, state motorists could choose a single limit plan with a minimum limit of $125,000. In addition $2,000 in medical payments coverage is also required [1].

There are advantages to choosing either type of liability policy. A split limit plan will cost less because it has separate deductibles for bodily injury and property damage and because it is less likely that all of the available coverage would be used in a typical accident. Single limit plans cost more but are more flexible. If you have no injuries to deal with but totaled a very expensive car, for example, that entire $125,000 could go to property damage liability and protect you from having to pay those expenses on your own once the limits of the policy were reached. The choice of which type to go with just depends on the driver's preference. It is smart to get quotes either way if you are unsure, so that you can see how much of a price difference it would make in your particular case to choose one over the other option.

Also, drivers should bear in mind that even though the state's required minimums for liability are some of the highest in the nation, they still might not be enough in many accident circumstances to meet all financial obligations. Most professionals in the industry recommend at least a 100/300/100 liability policy to make sure financial responsibility can be met; and in fact, most Maine car insurers quote policies based on those coverage levels as the default.

Uninsured and Underinsured Motorist Coverage

Uninsured/underinsured motorist insurance directly protects the covered driver. It provides the same areas of coverage as a liability policy, except that it applies that coverage to the insured driver rather than the other driver in an at fault accident. UM/UIM coverage is applied when the other driver is at fault in an auto accident but is uninsured or does not have sufficient coverage to take care of all the expenses related to the accident.

In the state of Maine, the minimum acceptable levels of uninsured motorist coverage are $50,000 per person and $100,000 per accident. It covers the covered drivers, family members, and any passengers in the insured vehicle who are injured while in the insured car at the time of the accident. UM coverage does not include coverage for damage to the vehicle here in Maine like it does in some states, but only includes bodily injury protection [1].

State auto insurance law requires that uninsured motorist policies be equal in value to drivers' liability policies unless they specifically choose to elect lower limits for bodily injury uninsured motorist coverage. If they choose to do so, the quotes on car insurance coverage cannot go below the state minimum for UM insurance.

Medical Payments Coverage in ME

Medical payments coverage pays for medical and funeral expenses for the covered driver and any passengers hurt or killed in an accident, regardless of fault. Expenses related to hospital stays, surgeries, x rays, chiropractor visits, and funeral and burial costs are among those included in this policy.

Drivers should take the time to get to know all the Maine required auto insurance coverage areas included in state law and explore optional protection as they get quotes using our online form at the top of this page.

[1] http://www.maine.gov/pfr/insurance/consumer/auto.htm Retrieved 2010-08-12.

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