How to Choose Uninsured / Underinsured Motorist Limits in Maine

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

Posted on January 26, 2014December 16, 2019 by Bob O'Brien

Uninsured_drivers_by_state — Click to enlarge

Almost every state in the U.S. requires drivers to have car insurance. Like every other law, there are always some people who choose to ignore or disobey it.

The good news: if you are in a crash in Maine, the other driver probably has insurance. Maine is in the Top 10 states for percentage of insured drivers.

The bad news: many Maine drivers carry very low liability limits – as low as $50,000 per person. After an accident, your medical expenses can easily exceed that.

What if the Other Driver Doesn’t Have Enough Insurance to Pay My Damages?

It’s great if the at-fault driver has insurance. Do they have enough insurance to pay your damages? Who knows? At 50/100/25, Maine’s minimum auto liability insurance limits are among the highest in the country. But if you drive a late-model car, $25,000 isn’t going to replace it. If you are badly injured, you can accumulate $50,000 in medical bills in one day. You need to protect yourself.

What Happens if Someone Hits Me and They Don’t Have Insurance?

If an uninsured driver hits you, you have to rely on your own Maine auto insurance. Your collision coverage (if you purchased that option) will pay to repair your vehicle. If you don’t carry collision insurance, you’ll have to deal with the damages on your own. Some other states offer “uninsured motorist physical damage” coverage. Maine does not.

What is Uninsured Motorist Coverage (UM)?

In Maine, Uninsured Motorist coverage is bodily injury coverage only. It protects you and the people in your vehicle by acting as if the person who hit you had the same liability limits you have. UM limits always match your policy’s liability limits. That’s another reason we say don’t cheap out when you choose your liability insurance limit.

Let’s say you’re driving in Portland, Maine. You have Uninsured Motorist coverage with Maine state minimum liability limits of $50/$100. Someone runs a red light and broadsides you. Your daughter goes to the hospital with broken bones and internal injuries. You were not injured as badly. After an ambulance ride, the hospital releases you with minor injuries. Your daughter’s medical expenses are $75,000, and yours are $2,500. In this scenario, you would have to pay $25,000 of your daughter’s medical bills ($75,000 – $50,000) out of pocket. If you had chosen a $300,000 combined single limit, all medical expenses would have been covered 100%.

What is Underinsured Motorist Coverage (UIM)?

Underinsured motorist coverage applies when someone has insurance, but not enough to pay for your injuries. Like Uninsured Motorist coverage, it pretends that the person who hit you had the same limits as you do.

Let’s assume the same accident scenario as above, except the at-fault driver did have insurance with Maine minimum limits of $50/$100. Their insurance wouldn’t be sufficient to pay for your daughter’s medical bills.

If you also had $50/$100 limits, you would still be out of luck. You didn’t buy any more insurance than the person who hit you did. But, if you had chosen a $300,000 limit, your UIM coverage would pay up to $250,000 per person, the difference between your insurance limit and theirs.

Danger: Uninsured Drivers in Vacationland

Although most Maine drivers are insured, remember that tourism is Maine’s largest industry. Visitors from other states are constantly driving among us. They’re in unfamiliar territory, and distracted by Maine’s natural beauty. They’re trying to follow GPS directions. Perfect scenario for an accident, right? Depending on the state they’re from, there’s almost a 25% chance that they have no insurance. So, pay attention to your Uninsured / Underinsured Motorist coverage limit.

What Liability and Uninsured / Underinsured Motorist Limit Should You Choose?

Everyone’s situation is unique. We recommend discussing your situation with a Trusted Choice Independent Insurance Agent. If you live in Greater Portland, contact a Noyes Hall & Allen agent at 207-799-5541 for a custom review of your insurance and your options. We represent most of Maine’s preferred insurance companies, and can help you choose the one that best meets your needs.

Marriage, Divorce and Maine Home + Auto Insurance

Posted on November 9, 2012January 14, 2020 by Bob O'Brien

On November 6, 2012, Maine voters approved citizen initiative Question One, allowing same sex marriage. Yes on One proponents claimed that only marriage, granted LGBTQ couples equality with everyone else. No on One proponents were concerned that a change in the traditional definition of marriage as “one woman, one man” might affect many aspects of life.

How Important is Marriage in Insurance?

In a word, VERY.

Most people justifiably think medical insurance is the type most affected by marriage. That’s where most of the public discussion is, too. But Maine homeowners and auto insurance contracts also treat spouses very differently than other people.

How does being married affect your Maine home and auto insurance? Let’s look at the most common insurance forms in Maine, ISO homeowners and auto policies. Although they are industry standards, your policy form may be different. Check with your own agent to be sure.

What Happens to Your Homeowners Insurance When you Get Married?

Spouses who reside in the same household are automatically defined as “YOU”. In insurance, it’s good to be YOU.

On most policies, an INSURED is defined as:

YOU;
your resident relatives;
full time students who are < 24 and your relatives, and lived with you prior to moving out; and
certain other minors in your care.

Are unmarried couples INSUREDS or not? To answer that, we have to ask the grammatically incorrect question, “who is YOU?”

“YOU” is defined as:

The Named Insured, as shown on the front page of the policy (called the Declarations);
That person’s spouse if they are a resident of the same household.

If both partners’ names appear on the policy they’re both YOU. But what if one unmarried partner’s name isn’t on the policy? They’re not an INSURED! What if your partner bought the house and you moved in later? Sorry, you’re not an insured.

What if you were married instead?

Married couples are both YOUs as long as they live in the same household. Even if both names are not on the policy. Pretty important, don’t you think?

Let’s say you move in with someone who already owned a home. In this common situation, being married is the difference between having insurance for your property and protection from lawsuits and having none at all!

Of course, this example applies to any couples, straight or gay.

How Marriage Affects Auto Insurance

The definition of YOU in the auto policy is quite similar. It includes the Named Insured and a spouse who is a resident of the household. One additional benefit of being married: your interest in the policy transfers to a surviving resident spouse upon your death.

Warning!

You probably noticed that a spouse must be a resident of the same household to have all of these benefits. If you separate, your status changes. Divorce affects your homeowners and auto insurance, too.

It’s important that you contact your Maine insurance agent to talk about these situations. They can help you make sure that you remain insured, one way or another.

If you live in Southern Maine and are looking for an Portland Maine area independent insurance agency that can answer these and other insurance questions, call Noyes Hall & Allen at 207-799.-5541.

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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What Should I Do When Someone Hit My Parked Car in Maine?

Posted on January 28, 2011June 27, 2018 by admin

This week alone, two of my friends’ parked cars have been hit by someone else. One in Portland Maine. The other in Westbrook, Maine. A responsible person would leave their contact information for the poor victim, but that doesn’t always happen. If you can’t identify who hit your car, you have little recourse but to use your own insurance. However, if you can identify the other party, this information may be helpful.

What To Do If Someone Hits Your Car in Maine

If it’s safe to do so, get the person’s name, address, phone number and insurance company information – BEFORE the police arrive!
Call the police if the total damage (both vehicles) appears to be more than $1,000. If there’s visible damage – even minor – it’s probably more than $1,000.
Give your statement to the police. Don’t admit any fault to the other driver, or argue about whose fault the accident was.
Report the accident to your Maine auto insurance agent.

Should I Use My Insurance or Theirs?

If the accident was clearly the other driver’s fault (e.g. you were legally parked), try their insurance first. Using their insurance avoids having to pay your collision deductible, allows you to keep your Maine car insurance discounts, and contains no daily limit on rental coverage. Of course, if you’re a victim of a hit-and-run accident, you have no choice but to use your own insurance. Your own local insurance agent can help you start the process.

Use their insurance if:

You got their insurance information at the scene, or can quickly get the Maine police report (many police reports aren’t available for several days).
Their insurance company accepts responsibility quickly (within 24 hours after you contact them).
You did not buy collision coverage on your own policy.

The Other Company Isn’t Responding After the Accident

The other insurance company must confirm liability before they accept responsibility to fix your car. They do this in one of three ways:

Their customer admits to them that they were clearly at fault (e.g. hit your parked car, rear-ended you at a stop light).
The police report says the other driver was at fault (police reports may not be available for several days).
After their own investigation, the insurance company determines that their customer was at fault.

If it’s taking too long for the insurance company to accept responsibility, you may choose to make a claim on your own policy. You’ll have to pay your collision deductible, but at least you’ll get your car fixed, and get on with your life.

Will I Get My Deductible Back if My Insurance Company Collects from the Other Insurance Company?

Yes. if they collect from the other insurance company (a process called “subrogation”), your Maine insurance company will reimburse your deductible, and wipe the accident off your record.

Who Will Help Me Deal With The Other Insurance Company?

That depends on where you bought your insurance. If you bought your car insurance or Maine commercial vehicle insurance from an independent local Maine insurance agent like Noyes Hall & Allen, they can help you report that claim to the other company. Your claim against the other insurance company should not affect your insurance company or your policy.

If you bought your Maine car insurance online, you’re probably on your own. One more reason to buy insurance from a local agency instead of a computer or 800 number.

Of course, if you have no insurance at all on your vehicle, you’re really on your own.

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