The Pine Tree State mandates that all drivers are covered by a liability policy. As stated by the Maine auto insurance laws, motorists are required to have at least the following limits as a minimum; $50,000 for bodily injury to one person, $100,000 for bodily injury to two or more people, and $25,000 for property damage or a combined limit of $125,000. These limits were put into place to cover the injuries and damages caused to a third party by a policyholder and compared to many states, these limits are much higher than the norm.
The bodily injury portion of a policy will pay for the injuries of a third party that are sustained when caused by a policyholder. This can also pay for such items as medical expenses, lost wages, and pain and suffering. The property damage portion helps pay for the cost of damages caused to property such as an automobile, fence or house while behind the wheel of the insured’s automobile. Liability policies will also cover bodily injury and property damage if caused by a member of a household who is covered by the policy or a person who is borrowing the vehicle with the permission of the policyholder.
Operators in the state are also required to have Uninsured/Underinsured protection included on policies. This type of coverage protects the policyholder for the cost of medical expenses arising from a traffic accident in which the other party is uninsured, does not have adequate coverage or if victim of a hit and run; this will also pay for passengers who are occupying the insured’s vehicle as well. The Maine Bureau of Insurance states that the limits must be no less than the amount of the minimum liability coverage stated on the policy. However, consumers do have the option to purchase limits which only meet the state requirements, but must submit a written notice to do so at the time of policy inception.
In addition to the above mentioned required coverage, motorists are also mandated to purchase Medical Payments. As of January 1, 2008, the state began requiring policyholders to have a minimum of $2,000 in medical payments coverage on policies. This will help pay for medical or funeral expenses if a policyholder and/or passengers are injured or killed as a result of a traffic collision. Another benefit of this coverage is that it will compensate the insured and/or members of their family if struck by a vehicle as a pedestrian, cyclist or if riding in another automobile. The $2,000 minimum requirement is quite low, especially compared to the cost of medical care and funeral expenses; if one does not contain a health care plan or life insurance, it may be wise to raise these limits.
Source: http://www.onlineautoinsurance.com/maine/
