Maine Car Insurance
Most states, including Maine, have legal requirements that residents must meet in order to operate a vehicle. According to Maine car insurance law, residents of the state are required to maintain a certain amount of liability insurance on each vehicle that they own. Vehicle excluded from this requirement include those that are classified as non-highway vehicles and vehicles that are nonoperational. Every other vehicle that is operated on a public road must have at least $50,000 in per person bodily injury coverage and $100,000 in per accident bodily coverage. Additionally, vehicles registered in Maine must also carry a minimum of $50,000 in property damage liability coverage. The coverage minimums represent the least amount of each type of coverage that can be purchased and most Maine residents with an auto insurance policy are free to purchase more coverage than the state requires. Maine is also one of the few states that require motorists to purchase uninsured and underinsured motorist coverage. The minimum amount of uninsured and underinsured motorist coverage required by state law mirrors that of the bodily injury coverage at $50,000 per person and $100,000 per accident. Like bodily injury and property damage coverage, uninsured and underinsured motorist coverage can also be purchased in amounts greater than the state mandated minimums. Each auto insurance policy sold in Maine must also include $2,000 in medical payment coverage. Medical payment coverage will help pay for any medical or funeral expenses for anyone that is riding in the covered vehicle at the time on an accident. For residents with vehicles that must meet state regulations the only way to avoid purchasing a car insurance policy that satisfies state requirements is to purchase an indemnity bond or elect to self insure. If a vehicle owner in Maine wishes to self insure they must first receiver authorization from the Interstate Commerce Commission. If a Maine resident does not wish to purchase an auto insurance policy will all of these different split limits state law also allows for the purchase of a single limit auto insurance policy with a minimum of $125,000 in coverage.
Along with establishing minimum car insurance requirements for residents of the state Maine car insurance laws also establish the penalties a driver can expect to incur if they are found to be breaking the law. Legally speaking, if a driver is pulled over or is involved in an accident they must be able to provide proof of insurance to the officer on the scene. In most instances a driver that is caught without the required levels of car insurance, and is unable to prove financial responsibility in some other way, will receive a fine ranging from $100 to $500. Drivers caught without insurance can also have their license and vehicle registration suspended as well. If the driver’s license and registration are suspended they will remain so until the driver can prove financial responsibility to the Maine Bureau of Motor Vehicles. This typically means that the driver found to be driving without insurance will be required to purchase an insurance policy that satisfies state requirements and provide proof of that policy to the BMV. Motorists that are involved in an accident while uninsured or have a history of driving without insurance may be required by the state to file an SR-22, which is basically a certificate that proves you have auto insurance.
Like most states Maine insurance laws set regulations not only for individual residents but for insurance companies as well. Any insurance company that wishes to business within the state is required to meet certain requirements, such as offering drivers a minimum amount of coverage. Insurance companies in Maine are also required to offer certain types of discounts to their customers if they meet the state’s criteria. A popular discount in Maine for example is the over 55 benefit which is obviously extended to drivers over the age of 55, though in order to qualify they must successfully complete an accident prevention course. This benefit requires that insurance companies offer discounted rates to Maine residents that are over the age of 55 completed the mandatory accident-prevention course. The only notable exception to this requirement is if a driver that is eligible for the discount has been in an at-fault accident or had their license suspended within the last three years. In addition to mandatory discounts it is common for car insurance companies in Maine and most other states to offer a variety of other discounts to their customers as a form of incentive. Drivers may get a discount for completing a defensive driving course for example and young drivers may get a discount if they maintain good grades while in high school and college. Another state regulation prevents auto insurance companies from selling sell motorcycle liability policies that exclude coverage for any passengers on a motorcycle.