Insurance Maine: A Guide to Auto & Home Coverage
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Being a northern coastal state, Maine is subject to many severe weather events, ranging from snowstorms to hurricanes to flooding. This makes insurance — particularly home and auto insurance — extremely important, as it protects your two largest assets. However, wading through the Maine insurance rules and regulations can feel overwhelming.
Below, we help you better understand Maine insurance and make finding the right policies easier.
Understanding Insurance in Maine
Home and auto insurance in Maine serves as a critical safety net, protecting your finances and assets from various perils. To fully grasp Maine insurance, you must understand how it works, its laws, and what to expect regarding costs and coverages.
Homeowners insurance protects your most important asset — your home — from loss. It covers replacing or repairing your home if it’s damaged by wind from a hurricane, experiences a roof collapse from excessive snow, and more.
Auto insurance protects you from financial liability if you damage another person’s property or injure them in a car accident for which you’re at fault.
Maine’s Mandatory Auto Insurance Requirements
As mentioned above, Maine has a state minimum auto insurance law that requires you to carry specific types of insurance coverage with minimum coverage amounts. The minimum required coverage includes:
- Bodily injury liability: At least $50,000 for one person injured in an accident or $100,000 total for two or more people injured in an accident
- Property damage liability: At least $25,000 to cover other people's property damages in an accident you’re at fault for
- Medical payments: At least $2,000 per person in medical coverage to pay for injuries you and others in your vehicle sustained in an accident
- Uninsured or underinsured motorist coverage: At least $50,000 per person or $100,000 total per accident to protect you from drivers with no insurance or insufficient insurance coverage
Review the insurance requirements of your state:
Home Insurance in Maine: Why It’s Essential
Maine is in the far north of the U.S. and can experience sudden snowstorms. Its coastline also poses a significant risk of hurricanes and flooding. This is why getting the right homeowners insurance in Maine is so important.
Maine has three main homeowners insurance coverage types:
- HO-1: Sometimes called “Basic Form,” this is the most restrictive coverage, as the standard coverage only protects you from fire and lightning damage.
- HO-2: Sometimes canned “Broad Form,” this insurance covers all the basic and optional perils under HO-1 and adds coverage for vandalism, falling objects, snow and ice damage, and optional personal property theft.
- HO-3: Known as “Special Form,” this is the most popular type of homeowners insurance. It covers all perils other than those explicitly excluded.
Choosing the Right Coverage for Your Auto Insurance
When choosing car insurance in Maine, you must get at least the state minimum insurance coverage. However, you also want to consider optional coverages based on your needs.
Consider the following when choosing your coverage:
- Your vehicle’s value: Newer or higher-value cars may benefit from comprehensive and collision coverage.
- Your ownership status: If you’re still financing or leasing the vehicle, your lender will likely require comprehensive and collision insurance.
- Your driving habits: If you frequently travel on freeways or highways, consider higher liability coverage, as higher speeds can lead to more costly damages.
- Your budget: If you have a tight budget, consider reducing your coverage or increasing your deductible to lower the annual premiums.
Comparing Home Insurance Policies in Maine
When comparing homeowners insurance in Maine, the following tip will help you make a fair assessment:
- Assess your home’s value and replacement costs to determine your required coverage.
- Obtain quotes from multiple insurance companies for competitive pricing.
- Make sure all the quotes you receive are for equivalent coverages.
- Review policy details carefully, including exclusions and coverage limits.
How To Find Affordable Auto and Home Insurance in Maine
With just a few tips, finding cheap car insurance in Maine that still meets your coverage needs and the state’s requirements is fairly easy. Some tips to consider when shopping for Maine insurance include:
- Taking advantage of discounts: Insurance companies in Maine offer various discounts. Inquiring about these discounts can get you cheap insurance in Maine.
- Increasing your deductible: You can offset some of the premium increases for enhanced coverage by increasing your deductible.
- Improving your credit score: A better credit score can reduce your insurance rates.
- Shopping around: Don’t get just one or two auto insurance quotes in Maine. Get as many as possible for a full list of insurers to consider.
Understanding Maine-Specific Insurance Laws and Regulations
Like many states, Maine has state-specific insurance laws and regulations that help protect its residents and ensure insurance companies engage in fair practices. Understanding these laws and staying current on all updates can help you understand your rights as a policyholder when you choose a new policy.
You should also stay informed about these regulatory changes to determine whether your policy meets any new insurance requirements. Maine’s Bureau of Insurance is responsible for all these regulations. You can remain current by periodically reviewing the Bureau of Insurance website.
Get the Best Coverage Today: Compare Auto Insurance Quotes
The best car insurance in Maine is a balance between meeting your budget and meeting your coverage needs. This balancing act can be tricky, but EverQuote is here to help with its online insurance comparison interface.
With EverQuote, you can compare multiple car insurance quotes in one place and choose the best option.