Maine Auto Insurance Laws And Car Insurance Requirements

Maine Auto Insurance Laws and Car Insurance Requirements

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Maine auto insurance laws are similar to those in other states, although the minimum coverage required for bodily injury is the highest at $100,000. It is one of the states that require coverage for uninsured or underinsured motorists and again the minimum coverage is among the highest required. Only Alaska s minimum required coverage for bodily injury is as high as Maine s. This could have something to do with the road conditions or the frequency of accidents. Carrying coverage is compulsory in all states except New Hampshire and Virginia. In those states, motorists have the option of proving personal responsibility, which basically means the motorist has enough money to cover any costs associated with an accident.

In addition to the coverage requirement for bodily injury, Maine car insurance laws stipulate that drivers carry liability coverage for $25,000 worth of property damage; and many states have a similar requirement for property damage but only the vehicles are covered by this part of the policy. Items inside the vehicle, such as a GPS expensive stereo systems are not covered. At least $1000 must be designated to cover medical payments in addition to the $100,000 minimum required for uninsured or underinsured motorists. This coverage is designed to provide protection when an uninsured or underinsured driver causes an accident. Although rare, there are still some people who drive without coverage despite the inherent financial loss it entails.

Maine auto insurance requirements apply to rental cars, regardless of the state in which the vehicle is registered or the home state of the driver. However, driving into the state from one of the surrounding states does not require the driver to purchase additional coverage for the rental vehicle. Typically, the policies for rental cars are purchased when the vehicle is rented at a cost of $7-$14 per day. It is important to read the fine print on the rental car policies because some of them are liability only. Should you bump into a pole in a parking deck and damage the automobile, the company could charge you for the damage unless you paid for collision coverage.

Since 2005, the Maine Bureau of Motor Vehicles has been able to determine whether or not drivers are adhering to the state s auto insurance requirements by way of a system called the Electronic Notification of Insurance Cancellation Program. This program requires insurers to notify the BMV in the event that premiums are not paid or a policy is cancelled.

When the BMV receives the notice, they will send a letter to the driver requiring him or her to provide proof of coverage, usually within 30 days. If the driver does not comply with the requirement, his or her registration and plates will be suspended, with an associated reinstatement fee charged. Maine auto insurance laws require that someone must be found at fault for an accident and injured persons are allowed to sue the at fault driver for amounts exceeding the policy coverage. For that reason, most insurers recommend carrying even higher minimums than those required by state law.

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Article Source:

ArticleRich.com