“Can I Take My Spouse Off My Insurance?” How Divorce Affects Your Maine Insurance Policies

Name: Noyes Hall & Allen Insurance
Address: 170 Ocean St, South Portland, ME, 04106
Telephone: 207-799-5541

Posted on March 22, 2012January 14, 2020 by Bob O'Brien

Divorce is a major life-change. It’s a complicated and emotional process that takes time to work through. It’s not surprising that it also can have a great effect on your personal insurance coverage. Here are answers to some commonly asked questions about how divorce affects your auto and home insurance. You should discuss your individual situation with your agent and your attorney.

I Want to Take my Spouse Off My Auto Insurance

Until your divorce is final, your insurance agent should not remove anyone’s name from the policy without their written consent. An insurance policy is a contract. Your agent is responsible to BOTH parties to the contract. Each has the same rights under the policy. A professional agent will not only want to make sure that both parties remain covered; they are obligated to honor each person’s policy rights.

We Own Separate Vehicles. Can’t We Get Separate Insurance?

Maybe, but you should consult your attorney first. Maine “joint property” laws may render the registration immaterial. If the property is considered “joint property”, you both should maintain one policy until the divorce is final, and the property is separately owned. Your attorney can help you with this issue.

The Insurance Bills Go to My Spouse. Will My Policy Cancel if They Aren’t Paid?

Yes. That’s why it’s important that your agent knows how to reach BOTH of you; you need to keep them updated. If payment of bills is a problem, discuss this with your attorney; they may be able to arrange for timely payment.

My Spouse Isn’t Reimbursing Me for Their Share. Why Should I Pay for Their Insurance?

It’s important to keep your coverage in force. The best way to do that is to pay the premium that you are billed. Otherwise your policy could cancel – and you would both lose coverage. Don’t “cut off your nose to spite your face”. Talk to your attorney about how to settle the financial details.

I’ve Moved Out. Does Our Homeowners Policy Still Cover My Stuff?

It depends. It is very important that you contact your agent to discuss your individual situation.

My Spouse and I Can’t Agree on Anything.

Sometimes, it is best to let your attorneys deal with these insurance issues. Give your agent permission to talk with them. Have them contact your agent.

If you are looking for a Greater Portland Maine insurance agency that understands how divorce affects your insurance, and can help you protect your assets now and later, contact Noyes Hall & Allen Insurance at 207-799-5541. Our agency represents several insurance companies, so we can offer one-stop insurance shopping.

Should I Drop Collision Coverage?

Posted on February 3, 2012April 29, 2021 by Bob O'Brien

Is it smart to drop collision insurance on an older vehicle? Your decision depends on your own circumstances. Here are a few things to consider.

“The 3 Rules of Tens”

It might be helpful to consider three things when evaluating the risk you take when you remove collision coverage from your Maine auto insurance policy:

TEN PERCENT – When collision coverage costs more than 10% of the book value of your vehicle plus your collision deductible. For example, if the book value of your vehicle is $3,000 and your collision deductible is $500, consider removing collision coverage if it costs more than $350 per year for that vehicle.
TEN YEARS – If your vehicle is more than 10 years old, it may no longer have enough value to warrant insuring.
TEN TIMES – If you have 10 times your collision premium in a “rainy day fund”, you probably have enough of a cushion to put a sizable down payment on a replacement vehicle. If you pay $350 a year for collision insurance and your “rainy day fund” has at least $3500 in it, you might reasonably risk dropping collision coverage. If you don’t have that much saved, you would probably need the insurance proceeds to help you make a down payment on another vehicle.

The Risk of Removing Collision

If another driver hits you and is at fault, their insurance should pay to fix your car – even if you don’t have collision coverage. But remember that fault can be disputed, and not everyone has insurance.

If you remove collision, you’d have no coverage for things like:

Hitting someone when you are at fault – or partly at fault
Someone hits your car, and is at fault, but doesn’t have insurance
Someone hits your parked car and doesn’t leave a note
Running over debris in the road and damaging your car.

When Should You Keep Collision Coverage?

There are some times when you should definitely NOT drop collision coverage:

You have a loan or lease on the vehicle. Your loan or lease contract requires you to carry collision coverage for the length of the agreement.
You have only one vehicle. Most multi-car families can limp by on one car while one is in the body shop. But, if you’re a 1-car household, you’ll probably want coverage to rent another while yours is being repaired. Also, you’ll definitely need to buy rental car insurance on vacation if you don’t have collision coverage on at least one vehicle on your policy.
You’re worried about being hit by an uninsured driver. If you have no collision coverage, someone hits you and it’s their fault, their insurance will pay. But, what if you are hit by an uninsured driver? Obviously, there’s no one else to pay; if you don’t have collision coverage, you’re on your own to repair your vehicle.

Maine’s ratio of uninsured drivers is 4%. That’s among the lowest in the country. But, we’re also inundated with drivers “from away” during tourist season. Other states have many more uninsured drivers.

Questions about Maine Auto Insurance?

If you’re a client, contact a Noyes Hall & Allen Insurance agent in South Portland for answers to your insurance questions. If you’re ready, you can request a policy change here.

If you live in Southern Maine and aren’t a client, call Noyes Hall & Allen Insurance at 207-799-5541. We offer a choice of many of Maine’s most preferred insurance companies. We’re independent and committed to you.

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Game Changer: Pay as You Drive Car Insurance in Maine – Is Progressive Snapshot a Good Deal for You?

Posted on March 15, 2011June 9, 2021 by Bob O'Brien

Let’s face it. Everyone thinks they’re a better-than-average driver. Most people think they drive fewer miles than the norm. And lots of us think that we’re paying too much for insurance because we subsidize those who are more aggressive, less attentive, less responsible drivers than we are. Soon, we will have a chance to put our money where our mouth is.

For years, green organizations like the Better World Club, consumer advocates and transportation planners have called for lower insurance rates for people who drive less than average. Some call it ‘pay as you drive”; others call it “usage-based insurance”.

We’ve been watching this issue for years. We’ve shared our reservations about pay as you drive insurance and its cost – not only in dollars, but in lack of professional advice and lost privacy. While the concept sounded intriguing, we haven’t found a product we were comfortable recommending to our clients.

Until now.

“This is Our iPod”

Progressive Insurance is bringing its Snapshot auto insurance to Maine next month. With this product, they’ve refined the concept and addressed many of the concerns that we identified with the previous generation of usage based insurance.

Progressive says “this is our iPod”, a product that will change the way people buy and use car insurance. With Snapshot, Progressive offers discounts for quantity (driving less) and quality (driving better).

We think that usage-based Maine auto insurance has a good chance to redefine how car insurance is rated, and empower consumers as never before. It rewards safe driving habits by offering car insurance discounts for risk-reducing behaviors such as gradual starts and stops, driving fewer miles, and staying off the roads during the most dangerous hours.

Progressive appears to have respected the line between information gathering and privacy invasion. They’ve also removed the cost uncertainty that concerned us in the first generation product. Finally, they’ve integrated a cool feedback tool that allows drivers to self-monitor and compare their driving to others on the road.

We haven’t been fully briefed on Snapshot auto insurance, but these are some of the coolest rumored features:

Discounts!

Depending on your driving behaviors, you may earn up to a 30% auto insurance discount. You’re eligible for your first discount after 30 days. Your “final” discount will be set after your first 6 month policy term. Because the discount is based upon individual vehicle data, a different discount percentage will probably apply to each of your vehicles.

Voluntary and Flexible

You will be able to choose whether or not you want Snapshot or traditional rating. You’ll even be able to choose which vehicles you want to be rated in Snapshot. Let’s say you drive from South Portland to Augusta every day, but your spouse stays home to care for your toddler. You might choose traditional rating for the commute vehicle, and Snapshot for the other.

Truly Rewards Responsible Behavior

Maybe you’re a safe driving advocate, gas mileage fanatic or carpool rider. Maybe you use public transit or commute by bike. Snapshot is the first Maine car insurance that rewards your green behavior with green in your pocket.

We think that this may lead to safer roads, however marginally at first. Snapshot drivers are likely to try to reduce their car insurance rates by driving less and driving more safely. Who knows, maybe classes like Maine Clean Communities EcoDriving Workshop (offered in April for fleet drivers) will become popular with individuals, too?

Professional Advice

Snapshot is not a good idea for everyone. Because it will be sold by an independent Maine insurance agent, you will be able to talk with a professional about your situation, and determine if it’s a likely fit for you. If it’s not, an independent agent has other options for you.

No Up-front Cost

Unlike the first generation of pay as you drive car insurance, you don’t have to pay for the monitoring equipment. Progressive gives it to you; when your monitoring period (about 6 months) is over, you simply mail it back to them in a prepaid envelope.

Cool Monitoring Tools

You can view your driving data up to the minute online. This just cries for an an update to the Progressive iPhone app. You will be able to see if you are tracking to get a discount within ten days of installing your device. Progressive will report how your driving compares to others. They will report how you drive, when you drive, and how much you drive. You’ll be able to use this feedback to improve your driving – and get a lower car insurance rate.

Sounds Good. What are the Drawbacks?

Privacy Concerns

The devil of this concept has always been in the details of monitoring and reporting. Just what information does Snapshot capture? With whom is it shared? The Snapshot device is not a GPS. It doesn’t record where you drive – only how and when. It records mileage, speed and time driven. It also uses an accelerometer (the way Toyota’s “glass of water” iPhone app does) to measure hard braking and jack rabbit starts. It transmits this information to Progressive via cell signal.

Progressive says they will not share this information with any third parties. But what if their data is subpoenaed following an accident? We have no doubt that the data would be provided. – and possibly become public information. And, while the device doesn’t have a GPS, it does use cellular technology. It’s not too crazy to think that one could identify where your vehicle is or was by what cell tower picked up your Snapshot signal. Whether that’s good or bad might depend on whether you’re trying to recover your stolen car or whether someone accuses you of causing an accident, and reports your license plate number to the police.

Privacy Rights Clearinghouse, a consumer privacy advocacy group, has testified their objections to pay as you drive insurance in the past. The publisher of Privacy Journal also expressed concern in this USA Today article. But as long as Snapshot remains an “opt in only” product, you can simply say no if you think the cost of your lost privacy outweighs the insurance discount.

How Do You Know if You’re a Good Candidate?

Don’t drive much? Have more vehicles than drivers? Have a “toy” for the weekends, or a truck that you only use for yard work and dump runs? Chances are good that usage based insurance will save you money.

Have Questions?

If you live in the Greater Portland area, contact Noyes Hall & Allen Insurance at 799-5541. If you live elsewhere, call your Maine independent agent who sells Progressive products. You can also see Progressive’s Snapshot page for more information.

Independent Contractor or Employee in Maine

Posted on March 24, 2010March 9, 2022 by Bob O'Brien

Workers’ Comp Costs Hang in the Balance

(Note: Maine law regarding independent contractor or employee changed January 1, 2013. This post from March, 2010 remains accurate. For the most up-to-date information, see “How to Save Insurance Costs and Win More Jobs Under Maine’s New Subcontractor Law“. )

What’s the difference between an independent contractor or employee? It’s the Maine workers comp insurance question that’s worth a lot more than $64,000: Guess wrong and you could end up with a huge Maine workers comp audit bill from your insurance company.

Independent Contractor or Employee – Why it Matters

Maine workers comp policies pay the costs of medical and lost time damages for employees. Who’s responsible if a worker is hurt on the job? Contractors are not responsible for injury costs for independent contractors; the independent should buy their own workers comp insurance to protect themselves and their own employees.

Independent contractor or employee? It's an important question in Maine.

Up to Now
Until recently, Maine workers comp insurance agents instructed their contractor clients to obtain certificates of workers comp insurance from subcontractors. Then, when the insurance company conducted the Maine workers comp audit, the premium auditor would exclude the subcontracted cost when calculating workers compensation premium. This was an effective cost and risk control technique.

Maine Independent Contractor or Employee: a New Definition

A new Maine law, effective January 1, 2010, (P.L. 2009, Ch. 452) sets a new standard for defining an independent contractor in the construction industry. It says that a person is presumed to be an employee unless that person meets all 12 parts of a new definition of independent contractor.

Contractors must pay Maine workers compensation insurance (by reporting the payroll to their workers comp insurer) for anyone who does not meet that new definition. Moreover, the employer must get pre-determination before each job starts, or all workers are considered employees.

Best Practices for Employers

Under PL 2009, a contractor must obtain either:

A Maine workers compensation certificate of insurance for the independent showing that coverage was in force for the duration of the job; or
“Predetermination of Independent Contractor Status” from the Maine Workers Compensation Board. This predetermination is not binding – an injured worker might still be shown to be an employee after the fact – but it allows the contractor to presume that the worker is an independent contractor, and thereby not purchase Maine workers compensation insurance on their behalf.

The Maine Workers Comp Board does not approve predetermination requests retroactively; the contractor must have the determination letter as of the date the work begins. Moreover, the Maine Workers Compensation Board took the position that a predetermination is required for each and every job that the independent does, regardless of the scope or duration of the job.

Needless to say, this is proving to be a hardship for general contractors and independents alike. The contractor’s typical job is short-notice, and independent contractors are often hired on the same day, leaving no time for a predetermination request to work its way through the Workers Compensation Board. Contractors are paying higher workers compensation premiums to include independent contractors, or risk losing the work due to delays.

Emergency Legislative Relief Considered

The 124th Maine Legislature has taken up LD 1815, in an attempt to clarify subcontractor status and to ease the burden on the day-to-day operations of contractors. While a Predetermination of Independent Contractor Status would still be required, the predetermination would be valid for one year. At least a contractor would not have to have this predetermination for every job. They could keep this form in their files and thereby exclude the independent’s payroll from their workers compensation rating.

We believe the proposal to require a predetermination on an annual basis is a step in the right direction. We hope the Maine Legislature agrees.

For More Info about Maine Workers Compensation Insurance

For more information and advice about Maine business insurance, contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. As an independent agency, we offer a choice of many of Maine’s preferred business insurance companies. That means we can compare insurance options to help you find the best fit for your business.

In other words, we’re independent and committed to you.

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Author: Bob O'Brien