Auto Insurance In Maine

In the state of Maine, there are mandatory automobile insurance laws that drivers must be fully aware of, in order to protect themselves and to understand the consequences of breaking the law. To operate a motor vehicle in Maine, residents are required to show financial responsibility in case of accident, or vehicular damage to property or causing injury. It is mandatory for drivers to carry liability insurance along with uninsured driver and medical coverage.

Maine uses Tort law to determine who was at-fault if an accident occurs. Whoever is at fault must pay for all damages. The at-fault person's auto insurance policy normally covers the financial obligation. In a Tort state, it is typically recommended that the resident carry higher insurance protection than the minimum required by the state.

In Maine, auto insurance providers can use a residents personal credit history to set the rates and products offered. In addition, they also consider the drivers personal information, average daily mileage, as well as previous auto insurance coverage.

Vehicle insurance companies doing business in Maine have the right to exclude certain household members from the policy. The policy exclusions section, lists all possible situations where the insurance company would be free from the obligation to pay a claim.

By law, you must notify the state when you obtain coverage because in Maine there is no direct-reporting process available to notify BMV automatically. As proof of insurance, your carrier may provide you with an insurance card.

If a drivers insurance policy has lapsed, the state law instructs insurance providers to notify the Bureau of Motor Vehicles (BMV). A letter from the BMV will be mailed to the resident indicating the amount of time they have to obtain proof of auto insurance, usually one month. To comply with the BMV request, prevents the driver from having their registration and license plates suspended. There is a $35 reinstatement fee if your registration was suspended.

As previously mentioned, residents of Maine who drive are required to have liability insurance, uninsured driver coverage, and medical payments coverage from an insurance provider. The minimums needed to comply with the state's financial responsibility law, are: $50,000 for the injury/death to any one person; $100,000 for one accident causing the injury or death of more than one person; and $25,000 to cover property damage.

In Maine, the only way you can provide evidence of financial responsibility, is to buy auto insurance. But if you are unable to do so, the state provides an alternative, called The Maine Automobile Insurance Plan. It helps the resident who cant buy coverage through on their own. All insurance companies who provide motor vehicle insurance in Maine are required to contribute to this shared market.

If you have followed the information mentioned here, you can operate your vehicle knowing that you are in compliance with the law. But if not, and a police officer stops you, with no proof of insurance, you will be cited. To remedy the citation, you will need to purchase at least the minimum coverage. And you will then have to file proof of financial responsibility using an SR-22 insurance certificate. Failing to file the certificate with the state could result in a suspension of your registration and even your drivers license.