The State of Maine laws require that you buy an insurance policy and provide proof before you are able to register your automobile. At www.dmv.org/me-maine you able to obtain quotes from the major insurance companies and get side by side comparison of premium costs to ensure you are getting the lowest possible rates.
The Maine law requires the following amounts of liability coverage that you must maintain
* $50,000 for injury or death of any one person
* $100,000 for one accident resulting in injury or death of more than one person
* $25,000 per accident for property
* $1,000 for medical payments
The first number (50) is what the insurance company will pay out for each person that is injured/death in an accident if you are held legally at fault for the accident. The second number (100) is what the total injury payout by your insurance company per accident. The third number (25) is what the insurance company will pay out per accident for any property damage. It is important to remember that the first and second numbers are tied together. If, for example, you were in an accident and were at fault for that accident and the accident involved 5 people and 4 were seriously injured incuring serious medical costs, a claims battle may happen between you and the other parties. If the medical bills are over $100,000, you as the at fault driver can be sued for the remainder of the costs in court. The fourth number (1) is the total amount that the insurance will pay out for your personal medical bills.
Insurance premiums in Maine are based on a number of factors including driving record, age, where you live, and how you use the vehicle. There are also a number of factors that can give you discounts such as multiple vehicles, honor roll deductions for student drivers and driving record. In Maine it is allowable under law for the insurance company to require that you complete a medical questionnaire and if you do not fill it out your coverage can be canceled.
It is important to remember that the minimums listed above are minimums. Your financial lending association may require you to carry different amounts of insurance including collision and and comprehensive insurance.
There are other types of insurance that you can purchase and may be required by your lien holder on a new vehicle. Collision is insurance that will cover you when your auto has any type of damage or collision. This includes other objects besides autos, as an example a tree falling on your car.
Comprehensive insurance is the insurance that covers the loss of the vehicle or its contents. It will pay for theft loss, vandalism, and natural disasters. The cost may be worth it to be covered if your car is parked in places that it may be susceptible to theft or vandalism. If you have security devices on your car, the cost of this insurance is drastically reduced.