Guide to Maine Auto Insurance

The state of Maine requires that you buy liability insurance for bodily injury and property damage, uninsured motorist insurance and medical payments coverage. These are the minimum coverages required by law:
* Bodily Injury Liability – $50,000 per person, $100,000 p34 accident.
* Property Damage Liability – $25,000
* Medical Payments coverage – $2,000
* Uninsured Motorist coverage – $50,000 per person, $100,000 per accident

Bodily Injury Liability coverage pays for injuries as a result of an accident for which you are liable. Medical payments coverage benefits are available only for yourself and other occupants of your vehicle and will cover medical and funeral expenses. Uninsured/Underinsured motorist insurance provides protection for you, if you are injured in an accident with a hit and run vehicle or one that does not have insurance.

The law requires that your Uninsured motorist coverage be equal to your Bodily Injury coverages unless you specifically request a lower amount in writing. They cannot, however, be less than the state minimum of 50/100.

Additional coverages to consider are collision and comprehensive insurance, which pay for damages to your vehicle in case of an accident, regardless of fault. The most that the insurance company will pay under these coverages is the cost to repair the damage, or the actual cash value of the vehicle if it is totaled or an unrecovered theft. Gap insurance, or loan/lease insurance will protect you if your car is damaged or totaled when you owe more on the loan than the actual cash value of the vehicle.

You may also consider Towing and Labor, or Rental Reimbursement coverage if you do not belong to an auto club like AAA and the loss of your vehicle during the repair period would require your renting a car as substitute transportation.

Every situation is different and you may need to purchase higher limits than the state-mandated minimums in order to protect your personal assets. The slightly higher premium can be much less costly than losing your assets because you are underinsured. If collision and comprehensive are purchased, choosing a higher deductible can lower your premium.

The best way to tailor a policy that fits your needs and your budget is to get quotes from the insurance companies that sell policies in your state. Online insurance quotes are quick and more convenient than surveying insurance brokers in your area, and you can compare rates on different coverages from multiple companies to find the best rates for a policy that fits your individual needs.