How Much Does Lawn Care / Landscaping Contractor Insurance Cost in Maine?

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Maine’s growing season is short. Landscapers and lawn care contractors only have a few months to earn money. That means they must watch expenses carefully to be profitable. Too much overhead can be the difference between profit and loss for a Maine contractor. 

How Much Does Landscaping Liability Insurance Cost?

Prices vary depending on:

  • Whether you specialize or not – pesticide or heavy tree work specialists pay more for insurance.
  • How much experience you have – seasoned businesses with good experience pay less than start-ups.
  • How much you make – higher revenues means higher insurance costs. 
  • If you plow in winter – If you take on lots of commercial plowing jobs, you’ll pay more for coverage.

If you’re a single operator in Maine with a mower or two, you’ll probably pay less than $1500 a year. If you have heavier equipment to insure, you’ll pay a bit more.

 Do I Need Workers Compensation Insurance for My Landscaping Business?

If you have employees, yes. If not, you may or may not have to buy workers’ comp, depending on the legal setup of your business. For example, if you’re a “dba”, you can choose to cover yourself under workers compensation, but you’re not required to.

 

Related Post: Who Needs to Buy Workers’ Comp Insurance in Maine?

 

How Much Does Lawn Care Equipment Insurance Cost?

You can insure tools and equipment like deck mowers, weed trimmers, hand mowers and hedge trimmers on a contractors package policy. The price varies with the value of the equipment. It usually costs less than $3.00 per $1,000 of value. Some policies offer replacement cost coverage (new for old). Other policies cover depreciated value. Ask your agent what they’re quoting.

How Much Does it Cost to Insure My Landscaping Truck and Trailer?

Business vehicle insurance costs more than personal. For a brand new 1/2 ton pickup, budget about $1500 per year – more if you plow commercially. Even though it’s more expensive, it’s still a good idea to buy the business policy. You want to be covered properly.

Related Post: Should a Maine Contractor Insure Vehicles in a Business Name?

 

Can I Store My Lawn Care Stuff in My Garage at Home?

Storing fuel or equipment in an outbuilding  can VOID COVERAGE for that building on your homeowners policy. If you have gas cans and mowers in your detached garage, and a fire starts, destroying the garage, your homeowners policy will NOT cover the rebuilding cost – even if the mowers or fuel had nothing to do with the fire.

Talk to your homeowners insurance agent about how your policy deals with this. Another option: insure your garage on your contractors policy. You want to make sure you have insurance help to rebuild after a disaster.

Have questions about contractors insurance for Maine landscaping or lawn care business? If you live and work in the Portland Maine area, call a Noyes Hall & Allen Insurance agent at 207-799-5541. We represent many insurance companies, so we can recommend the best value. We’re independent and committed to you.

Portland, Maine: Green Living in a Small City

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The news is out: Portland, Maine (pop. 66,000) is a hot little city. Big city dwellers move here for the walkable, livable scale and good schools. Small town folks are attracted by our density of entertainment options, from music clubs to minor league sports. Outdoor lovers can ski, boat, hit the beach, climb a mountain, or kayak to an island, all within an hour of downtown Portland. Of course, our foodie and beer culture are well-known, for good reason.

Perhaps the thing that ties it all together is Portland’s green sensibility. Residents appreciate the natural beauty and resources of Southern Maine and Casco Bay. We celebrate and protect it. We put our money and volunteer hours into it. Many of us incorporate green living into our lifestyle.

Here are a few things that make Portland a green little city:

Portland’s Farm-to-Table Game is Strong

Most surrounding towns have weekly farmers markets. Portland Farmers’ Market sets up shop seasonally on Saturdays in Deering Oaks and Wednesdays in Monument Square – the heart of downtown Portland. There’s also a winter market. Portlanders like to eat fresh local food, whether at home or dining out.
Portland’s world-class restaurants and grocers celebrate fresh seafood and locally grown produce and meat. We even have potato donuts. Forbes says Portland ranks #1 in the U.S.  for microbreweries per capita. Many more breweries dot the region just outside the city.  The New York Times documented Portland’s locavore culture. But the secret was out long before that.

We Buy Local

The cool kids in Greater Portland support local merchants and locally-owned business. Sure, we have our share of big box retailers and chain restaurants near the highway. But as you wander the neighborhoods of Portland, you’re struck by the lack of homogeneous “I could be anywhere” sprawl. Even our downtown buildings advertise names recognized here, but not everywhere.
Popular business groups like Portland Buy Local, South Portland Cape Elizabeth Buy Local and the Portland Downtown District lead the charge of local business owners. In addition to the usual supermarket chains, Portland has many produce stores, butcher shops, fish mongers and bakeries. Ethnic markets and bodegas offer Asian, Halal, and Central American specialties.

Portland’s Green Non-Profits and Government Cooperate

Non-profits like Portland Trails (70 miles of nature trails in the city), Maine Island Trail Association (America’s first water trail, linking 200 islands), Bicycle Coalition of Maine and Friends of Casco Bay are well-connected to city and regional governments. Organizations like Cape Elizabeth Land Trust work to protect and preserve wild spaces. We have an award-winning private community composting service, Garbage to Garden. Portlanders even discuss green living over beer every month at Portland Greendrinks.
Government is committed to being green, too. Bike corrals and bike lanes are visible and growing on city streets. Both Portland and South Portland have sustainability coordinators on staff. Both cities are converting landfills to solar farms. The City of South Portland has a small fleet of electric cars. Portland’s Metro buses run on natural gas and have bike racks. Hadlock Field, where the Portland Sea Dogs play baseball, has convenient bike racks, and is right on the bus line.

In Portland It’s Easy Being Green

Most of Portland’s business, dining and entertainment is on the downtown peninsula, 2 miles long and 1 mile wide. That makes it easy for downtown dwellers to leave the car at home and walk or bike (albeit with a few hills). It’s easy to walk from work to dinner to a show without breaking a sweat (thank you, Casco Bay breezes!). Even our finest restaurants and theatres are quite casual; you’ll fit right in with your sensible shoes and outerwear.

Buses, car-shares and taxis cover the city effectively. High school students ride the Metro Bus to school, allowing some families to avoid getting a separate vehicle. Portland’s neighborhood elementary schools are within walking distance for most students.

It’s even easy to get out of Portland without a car. Our airport (PWM) is 4 miles from Monument Square (30 min./ Metro, 12 min. / taxi). Concord Trailways and Amtrak offer several trips daily to Boston. Concord also operates 2 trips a day to midtown Manhattan. Both leave from the Portland Transportation Center, 2 miles from the city center.

 

If you’re looking to live in a city big enough to keep you entertained (and employed) and small enough to live a low-impact lifestyle, it’s tough to find a better place than Portland, Maine.

What’s Causing U.S. Auto Insurance Rates to Go Up?

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U.S. auto insurance rates increased 7.5% between January 2016 and January 2017. That’s after more than a 5% increase in 2006. What’s driving the increasing cost of car insurance? More accidents? More highway deaths? We hear about 4 major factors combining to make the cost of car insurance go up even faster than overall inflation.

auto & home insurance inflation

Medical and Labor Costs

Insurance pays for two big expenses: auto repairs and medical expenses.  Medical expense prices increased about 32% in the 8 years between 2005 and 2013. Auto repair labor costs have increased too. Also, it costs more to fix a newer car than an older one (see #3 below).

More Crowded Roads

Even if you aren’t driving more miles, your neighbors are. It’s not your imagination: the roads are more crowded. More cars on the road means an increased chance of a crash. Americans drove more that 3 trillion miles in 2015, a 3.5% increase from 2014. That’s the largest annual increase in 25 years. Why? Economists say an improving economy and low gas prices were the main reasons.

Lots of Newer, Hi-Tech Vehicles

Car makers are selling lots of vehicles. And many of them are computers on wheels. Americans bought 17.5 million new vehicles in 2015, a 5.7% increase from 2014. Newer cars cost more to fix than older ones. They also have advanced tech features. Rear bumper cameras are very common now. Front bumper radar and other safety features are available on many models. Even a side mirror likely has “blind spot warning” hardware. If you do get in an crash, chances are the insurance company will have to pay more to fix the other car than it would have a few years ago.

Distracted Driving

You may be the same safe driver you’ve always been. Unfortunately, many others on the road aren’t paying as much attention. A 2013 AAA study found that 2 out of 3 drivers reported using a mobile phone while driving. More than 25% admitted sending a text or email while behind the wheel. The National Safety Council estimates 26% of all car crashes involve cell phone use. Distracted driving increases the risk of a crash as much as driving drunk.

Related Post: Why Did My Maine Auto Insurance Go Up?

Should You Shop Your Maine Car Insurance?

Maybe. Every insurance company files their own rates based upon their experience and appetite. If your insurer had lots of claims in another part of the country, it could be affecting your rates. If you live in Southern Maine, contact a Noyes Hall & Allen Insurance agent for a review at 207-799-5541. We represent many different insurers, so you can compare with one phone call.

Not ready to talk to a human yet? You can still compare prices from up to 6 Maine auto insurance companies online on our web site.

When you chat with us, we can provide personalized, custom, professional advice. As a Trusted Choice insurance agent, we are independent and committed to you.

When Should a Maine Contractor Insure Vehicles Commercially?

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Contractor Banner 582 X 172 (2)

 

Many Maine contractors drive personal vehicles for business every day. Cleaning contractors drive their own cars to jobs from Cape Elizabeth to Cumberland. Food delivery workers pop a magnetic sign on the roof and zip through Portland streets. Uber drivers shuttle people to and from the Old Port in their SUVs. Landscapers haul mowers on trailers from Scarborough to Yarmouth. Carpenters and handymen load tool boxes and ladder racks for Munjoy Hill rehab projects. In winter, contractors from Kittery to Fort Kent pick up plow jobs to pay the bills.

Does a Personal Policy Cover Contractor’s Business Use of a Vehicle?

Maybe not. Many insurance companies exclude delivery or transporting commercial goods. If you’re in a crash hauling your tools or delivering a pizza, you could find yourself with no coverage. Almost every personal policy excludes carrying passengers for a fee (Uber or Lyft).

If My Truck Has Lettering on the Side, Does it Require Commercial Insurance?

Lettering can be a “tipping point” when defining a business vehicle. Is your truck lettered? Talk to your Maine contractor’s insurance agent to see if you need to switch to a business policy. Avoid a surprise at the absolute worst time – after an accident.

What if I’m in an Accident With My Contracting Truck on My Personal Insurance Policy?

You may have no coverage (see above). Even if your policy doesn’t exclude your claim, your personal insurer won’t be happy. After paying, they could cancel your family’s insurance. Or, they could force you to insure your truck on a business policy. At the very least, they would surcharge your policy for the claim.

What’s the Advantage of Business Auto Insurance?

Compared to a personal auto policy, a commercial vehicle policy allows you to:

  • Get coverage for business use of the vehicle – which is the whole purpose of having insurance at all.
  • Buy higher liability limits – to meet job requirements, and better protect your business assets and reputation.
  • Have Loading and Unloading coverage – If you yank the wires from a customer’s house while pulling your ladder off your rack, that’s not covered by your business liability insurance. Business Auto policies cover it.
  • Purchase higher rental limits, so you can rent a vehicle comparable to the one that’s damaged. No one wants to show up for a carpentry job in a subcompact car.
  • Include non-owned auto coverage – protects your business if someone crashes while picking up a part or a tool for you with their own vehicle.
  • Separate your personal life from your business. You don’t want to explain to your spouse why their insurance was canceled, or the price increased so much.
  • Insure larger vehicles – most personal policies don’t insure anything bigger than a 3/4 ton pickup.
  • Include attached equipment – like tool boxes, ladder racks or signage.

How Much Does Commercial Vehicle Insurance Cost in Maine?

It varies of course, depending on the vehicle and use. Plan to spend about $100 a month for a contractor’s pickup truck with collision coverage and $1 million of liability coverage. Prices can decrease if you have more vehicles, or increase if you have bigger trucks.

Would your Maine auto insurance pay if you were in an accident at work? Have questions about Maine contractors insurance?  Contact Noyes Hall & Allen in South Portland at 207-799-5541, or click “let’s talk” below. We’ve helped contractors to stay on the job and out of hot water since 1933. Because we represent many insurance companies, we’re independent and committed to you.

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Avoid The Biggest Home or Auto Insurance Mistake

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Auto and home insurance are necessary for most Mainers. That’s one reason why the Maine Bureau of Insurance enforces consumer protection laws. A Maine insurance company can only cancel your auto or home insurance for a few reasons. The most common is also the most avoidable – and the most damaging.

THE BIGGEST INSURANCE MISTAKE YOU CAN MAKE:

Allow your policy to cancel for non-payment of premium.

 

Once your policy cancels, you have almost no legal protection. The insurance company may refuse to take you back for any reason at all. End of story. 

The moment your policy cancels, you lose ALL leverage with the insurance company. They hold all the cards. If you want to go back to them, they will pull out their magnifying glass to review your:

  • claim history (even small claims hurt);
  • payment history (are you often late?);
  • other business with the insurance company (if this was your only policy with them, they may not take you back);
  • credit score (if your score is a lot lower than it was when they insured you, they may decline);
  • the age, location, use and condition of your home (for homeowners insurance).

With a Lapsed Insurance Policy, You Have Few Options

Preferred insurers will consider you only if you’ve had insurance (no lapse) for at least 2 years. Some companies demand an even longer period of continuous insurance. If your preferred company won’t take you back, you may end up in the “non-standard or “specialty market. Expect much higher premiums, less broad coverage, and limited payment options.

Keep Your Leverage Against the Insurance Company

Keep your policy in force until YOU choose to cancel it.

Down to the wire? Most insurers now accept credit cards.
Down to the wire? Most insurers now accept credit cards.

4 WAYS TO MAKE SURE YOUR COVERAGE DOESN’T LAPSE

  • Set up automatic withdrawal of insurance premium (monthly, quarterly or annual);
  • Notify your agent right away of any changes in mortgage company or address;
  • Notify your agent if you change address or phone number;
  • Update Maine Bureau of Motor Vehicles with any address changes.

If Your Maine Homeowners or Auto Policy Cancels

The insurance company may give you another chance IF:

  • you’re a long-term insurance company customer;
  • you caught your lapse very quickly; and
  • you have a good claim and payment history;Contact your agent right away. They’ll try use their leverage with the insurance company on your behalf. They don’t always win. If they do, the insurance company will need immediate payment and a signed “no loss statement”. Only then will they reinstate your coverage.

Who Needs to Buy Workers Comp Insurance in Maine?

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Maine law requires every business to provide workers compensation insurance to protect its employees. Workers comp pays for medical expenses and lost wages following an on-the-job injury or occupational disease.

Is There a Minimum Payroll for Maine Workers Comp?

No. As soon as you hire your first employee, you’re required to provide workers’ compensation insurance. It doesn’t matter how much or how little they work, or what their hourly wage is. The only exceptions are employers of domestic servants in a private home, or agricultural employers who meet certain requirements.

 

 

Do I Have to Buy Workers Compensation for Independent Contractors in Maine?

No, but the eligibility bar for an independent contractor is VERY high in Maine. Maine law sets 12 tests for an independent contractor. The tests deal with supervision and control. How many do you have to meet to qualify? All twelve.

Related Post: Independent Contractor or Employee?
Maine Workers Comp Insurance Costs Hang in the Balance. 

If there’s any question in your mind whether or someone is a contractor or an employee, chances are good that they’re an employee. To avoid unplanned expenses, we recommend applying for a Pre-determination of Independent Contractor Status (WCB-266) with the Maine Workers Compensation Board.

Are Business Owners and Partners Required to Buy Maine Workers Comp Coverage for Themselves?

They’re not required, but whether they’re automatically covered or not depends on the type of legal entity.

Sole Proprietorships and Partnerships – Owners are not automatically covered, but they may “opt in”. Parents, spouses and children of an owner who work in the business are automatically covered, but may “opt out” by signing a form.

Corporations and Professional Associations – Officers who work in the business are automatically covered and included at their actual payroll (subject to minimums and maximums). If they own less than 20% of the stock, they cannot be excluded.

An owner of 20% or more of voting stock may “opt out” of workers comp by signing a form. Spouses, parents and children of these owners may also be excluded, even if they’re not household members.

Charitable, Religious or Non-Profit Corporations – Executives are not considered “officers”. If they are paid wages, they are covered by workers compensation. They may not “opt out”. If they are not paid, they are considered volunteers, and not covered. Volunteers do not have the choice to “opt in”.

LLCs – Owners are excluded unless they “opt in” to coverage. Parents, children and spouses of owners are automatically covered, but may “opt out” of workers comp.

Owners of 50% or more of separate businesses MUST be on the SAME policy, even if the two businesses have different legal forms (e.g. a partnership and a corporation).

What’s the Penalty for Not Having Maine Workers Compensation Coverage?

That’s a risk you don’t want to take. Here are a few of the downsides:

  • It’s a Class D crime, subject to a $10,000 penalty or 108% of the premium you should have paid (whichever’s larger);
  • You can lose your corporate charter or other state licenses;
  • You’re solely responsible for the medical expenses and lost wages of your employees (regardless of fault or contributory negligence);
  • Your liability and other insurance offer no protection against this.

If your business hires an employee, you need Maine workers compensation coverage. Call Noyes Hall & Allen Insurance at 207-799-5541 for a free consultation and quote. We can help you manage your workers compensation and other Maine business insurance costs. We represent several top Maine business insurers, including MEMIC, the largest workers compensation insurer in Maine.

We’re independent and committed to you.

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Why Did My Maine Auto Insurance Go Up?

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You’re a careful driver. You haven’t had an accident or a ticket in years. You drive the same old car. Maybe you drive less because you retired, or bike to work. Why did your auto insurance price go up?

It’s not just you. Average US auto insurance rates increased by about 11% the 5 years from 2011 to 2016. Maine’s rates remain among the lowest in the nation, but so are our incomes. Fortunately, your personal behavior and situation greatly affect your car insurance costs. You do have some control over what you pay for car insurance.

Why Did My Car Insurance Increase?

You Had an Accident

Insurance companies charge more after an accident – some even charge if the accident wasn’t your fault. That’s because insurance data shows that if you’ve had one accident, you’re more likely to have another than someone who hasn’t had any. Some insurers charge for 3 years, some as much as 5.

You Got a Ticket

Speeding tickets and other moving violations flag you as a higher accident risk to insurance companies. Some insurance companies don’t charge for the first ticket, but they charge for the next, and even more for any future tickets. As with accidents, different insurers surcharge your policy for 3 or 5 years after a violation.

You Have a Young Driver

Inexperienced drivers have more accidents, so they cost more to insure – at least until they can establish a good record. If your child recently got their license or permit, expect to pay more for a few years. Insurance companies do offer discounts for honor roll / dean’s list students,  students who are away from home without a car, and those who passed a driver’s ed course. Check with your agent to be sure you’re getting the discounts you deserve.

Related Post: How Much Does Car Insurance Cost for a 16-year-old in Maine? 

Your Credit Score Recently Dropped

Drivers with excellent credit tend to pay less than others. Insurance records show that they file fewer claims than those with lower scores. Credit score impacts your “insurance score”, which almost every insurer in Maine uses to set your rate. Some insurers review your score every few years. Others freeze your score when you apply, unless you ask them to re-run your score. If your score isn’t as good as when you started your policy, your car insurance may go up. Each insurer uses a different formula for insurance score. Talk to your agent to see if your current insurance company is still the best value.

Your Insurance Company Has Lost Money

Overall insurance company results affect your rates, too. Insurance pools the experience of your neighbors with yours. That’ good, because it reduces your risk and limiting your expense to a budgetable amount. It’s bad if your insurer has paid so many claims for other people that it affects your rates.

Insurance companies are good at estimating claim expenses. But, they’re not perfect. A large hail storm, or unexpected factors (like lower gas prices) can catch them off-guard. Some years, your insurance company pays more in claims than they collect in premium. If they do that for too many years, they must increase rates to collect enough to pay future claims.

Related Post: What’s Causing U.S. Auto Insurance Rates to Go Up?

Your Insurance Company Thinks You Drive More Than You Do

How you use your car affects your car insurance rates. When you started your policy, your agent asked whether you drove to work and how many miles a year you drove. If you’ve since changed jobs, retired, or commuting a different way, call your agent.

Some insurers offer custom rates if you allow them to monitor your driving. The savings can be considerable: as much as 30% if you drive very few miles. Contact your agent if you’re interested in learning more about these pay-as-you-drive plans.

How Can I Reduce My Auto Insurance Costs?

First, drive safely. A clean driving record is the best way to control your auto insurance price. Here are some others:

Should I Shop My Car Insurance?

If you live in Southern Maine, contact a Noyes Hall & Allen Insurance agent for a review at 207-799-5541. Not ready to talk to a human yet? You can still compare prices from up to 6 Maine auto insurance companies online on our web site.

When you chat with us, we can provide personalized, custom, professional advice. As a Trusted Choice insurance agent, we are independent and committed to you.

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Moving or Relocating to Portland Maine: How to Register a Car

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If you’re moving or relocating to Portland Maine, you’ll be eager to take care of business once you’ve settled in. Well, maybe not. But, you’ll feel better after you do it. You’ll need to get a Maine driver’s license and register your car in Maine within 30 days. Here are the steps.

Step One: Get Maine Car Insurance

Maine requires every vehicle owner to have insurance. This, and our mostly rural character, makes cheap auto insurance a way of life. Maine has the lowest average car insurance costs in the U.S. 

Shopping for car insurance isn’t as bad as you think. Nobody does it for fun, but it will go faster if you have your old policy information handy.

If you’re looking for Maine auto insurance and live in Southern Maine, we can help. As an independent agency, we offer a choice of many insurance companies at once. You can get up to 6 Maine auto insurance quotes online in 10 minutes, or call a Noyes Hall & Allen agent to get your quotes.

Step Two: Visit City or Town Hall

(maine.gov photo)
(maine.gov photo)

Take your insurance card and your out-of-state title and registration to your local municipal office. Note your vehicle mileage. You’re going to need that to register. They’ll collect excise tax, a type of vehicle property tax. Excise tax is based upon the age and “cost new” of your vehicle. If you call ahead, your city or town can tell you how much your excise tax will be.

Most Maine cities and towns including Portland, Falmouth, South Portland, Cape Elizabeth, Scarborough and Westbrook provide standard Maine license plates. If you want vanity plates, order them from Maine BMV.

Step Three: Get Your Maine Drivers License

Maine Bureau of Motor Vehicles issues drivers licenses. As long as your out-of-state license is valid and your name hasn’t changed, it’s easy to convert it to a Maine license. You’ll need to:

  • Provide proof of residency (your auto registration should suffice)
  • Take an eye test
  • Turn in you old license (sorry, we know that picture was your favorite)
  • Pay a fee.

Greater Portland area Bureau of Motor Vehicle Branch Locations:

Maine BMV Portland: 125 Presumpscot St. 04103  207-822-6400

Maine BMV Scarborough: 200 Expedition Drive, Suite G 04074  207-883-2596

Do I Have to Get a Maine Inspection Sticker?

Yes, but maybe not right away. If you have a current inspection from another state, you’re not required to get a Maine State auto inspection until that expires. A lot of people do it at the same time as registration to make it easier to remember to renew both. Maine registration and inspection each last for a year.

Don’t Forget to Insure Your “Stuff”

Many Portland Maine landlords require proof of renters insurance. Even if they don’t it’s a good idea to protect your belongings from fire, theft and other disasters. We can quote Portland Maine renters insurance in 10 minutes or less. When it comes time to buy a home in Maine, or if you have questions about Maine insurance, we’re here to help. We offer a choice of several preferred insurance companies. We’re independent and committed to you.

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Beware of “Teaser” Maine Homeowners Insurance Quotes

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One of our employees received this solicitation from a competitor. It quotes a homeowners premium of $409 per year. That’s hundreds less than they pay now. How can that be? Is this “bait and switch”? Like most of these offers, if it sounds to good to be true, it probably is. The answers are in the fine print.

Example: 6 Cheap Homeowners Insurance Quote Tricks

Beware of "teaser" homeowners insurance quotes!
Beware of “teaser” homeowners insurance quotes! (click to enlarge)

1. Using the “Perfect Profile”

Every insurance company uses personal information to provide an accurate quote and policy for you. This may involve your insurance history, your insurance score (similar to a consumer credit score), your occupation and more. If you get a quote out of the blue without giving any of your information to anyone, you’re getting a generic quote, probably containing the absolute best rate, reserved for the theoretical human who fits the perfect profile. No one gets that rate.

2. Quoting On the Tax Assessor’s Value of Your Home

Tax assessments have nothing to do with insurance. Towns and cities revalue every several years to create a “just baseline” to compare properties for tax purposes. If it’s been years since the last revaluation, the figure is probably low. Assessed value has nothing to do with the cost to rebuild your home. Assessments are roughly based on market value, which is affected by location, condition, and acreage.

After a disaster, you want to have enough insurance to rebuild your home. Insurance companies want that, too. That’s why they require you to insure 100% of replacement cost. Usually, assessed value is far below your home’s replacement cost. For example, this home’s replacement cost is 20% more than the quoted amount. If they called for quote, the insurer would take information about their home, calculates its replacement cost, and bump the amount by 20%. That would increase the price.

This insurance company knows all of that, but chooses to ignore it. The lower amount means a cheaper quote. It’s appealing – until you think about it.

3. Inflating Your Insurance Score                         superior-credit-quote

As explained above, insurance companies use scoring to price your insurance. The higher your credit score, the lower your insurance price. This quote assumes that you’re in the top tier of insurance scores. Even people with excellent credit scores may not make the “superior credit” status. So, when you respond to the solicitation, your price probably goes up.

4. Presuming Your Home Was Just Built

This home was built in 1972. The tax assessor’s document clearly says that. Why would the insurance company quote it as if it was new? Because there’s a “new home discount”. That makes the rate lower, until you call in. Oops, no discount for you.

5. Assuming You Move All Your Insurancemultipolicy-quote

It’s no secret that you can get a lower price with most companies by bundling auto and property insurance. You should absolutely talk to your agent about bundling to see if it makes sense for you. It doesn’t always. What if this company’s car insurance rates are terrible? What if you don’t meet their underwriting requirements? What if…?

Without a package discount, this quote could be 20% higher – or more. And, think about it: if this insurance company uses shady quoting tactics on your home insurance, do you really want to trust them will ALL of your insurance?

6. Have You Really Had No Claims in 5 Years?

Maybe that’s true, maybe not. Five years is a long time. Many people forget that they’ve had claims. You could think it’s true, until the insurance company runs their reports. That plumbing leak? The water backup in the basement? Oh yeah. Those count. And, they can change this quote considerably.

Looking for a Real Maine Homeowners Insurance Quote?

If you are looking for homeowners, condo or renters insurance in Maine, and want a thorough review and a realistic proposal for your coverage, contact a Noyes Hall & Allen Insurance agent. We’re independent, so we offer a choice of preferred insurers in Maine. Prefer to start online?  Get up to 6 Maine homeowners insurance quotes in 10 minutes on our web site. If that’s as far as you want to go, we won’t hound you later. But, we’re happy to answer your Maine home insurance questions.

When a Great Car Insurance Quote Isn’t

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We all see them. Those auto insurance solicitations in the mail, online or on TV. Some of them are really funny. Some promise lots of savings. How can you tell if they’re real or not?

One of our clients shared this mail solicitation from an insurance company looking to quote their auto insurance. The quote looked to be about half what they are paying now. After we reviewed it with him, the client was happy to stay with their current insurer. Here’s some of what we pointed out to them.

We’ve blanked out the information about the other company on the letter below. We’re not out to embarrass anyone. But, we share it so that you can look critically at the solicitations you receive. If it sounds too good to be true, it probably is.

6 Reasons Why This “Good Deal” Isn’t. 

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1. You are “Pre-approved”

Read closely. It doesn’t say that you’re approved for the rate they’ve quoted. In fact, unless you’re a 45-year-old married man who drives a 2014 Subaru Impreza (which the recipient was not), and have very good credit, your quote could be a lot different. What you’re approved for is to receive this letter. Don’t you feel lucky?

2. “Average $446 per Year Savings”

Notice that “7 out of 10 drivers who switched saved money – an average of $446 per year”. A few questions leap to mind:

  • How many drivers are we talking about? Did 10 people switch, or 10,000? Who knows.
  • How many drivers didn’t switch? If 95% of people who went through the process didn’t change, is it worth responding to this flyer for a 5% chance of success?
  • Where do these drivers live? Ahh, the small print on the back says this is “national consumer data”. That makes a difference. Maine has the lowest auto premiums in the country, averaging $902. Per year. No insurance company is so consistently cheap that they save most people 50% on their car insurance. Even if this company does save you money, it’s unlikely to be anywhere near $446. It sounds good in the letter, though.
  • What about the 3 out of 10 who spent MORE money after signing on with this insurance company? The story doesn’t say. That’s probably not the outcome they wanted when they started the process, though.

3. $50,000 Per Person Bodily Injury?

Bodily injury liability insurance pays medical bills and pain & suffering for people you may hurt in an auto accident. It’s the only thing protecting your net worth from a lawsuit. $50,000 is the absolute minimum allowed in Maine. It’s also a lot less than the net worth of most 45-year-old married men driving 2014 Subarus. Did we mention that Maine’s Wrongful Death Statute allows up to $1,000,000 per person – 20X the limit this letter quotes?

Quoting $50,000 limits is a disservice to most Maine consumers. It makes the price look good, though. Maybe if you responded, the agent would up-sell you to higher limits (at a higher price). Or, maybe they’d just sell you the $50,000. Either way, you lose.

Related: How Much Liability Insurance Should You Buy? (Calculator)

4. $50,000 Uninsured Motorist Coverage?

This one’s arguably even worse. Uninsured Motorist is supposed to protect YOU and your family and passengers if you’re injured by someone who has little or no insurance. It pays the difference between the at-fault driver’s inadequate insurance limit and your UM limit. If you buy this quote, and are hit by someone with $50,000 liability coverage (which we’ve already determined is very low),  this policy provides NO UM coverage at all. But at least the price for “no insurance” was lower 7 out of 10 times.

5. Who Can Rent a Car for $20 a Day?

We don’t know of any national rental firm that charges less than $30 a day in Portland, Maine. And that’s for a compact car at the insurance company’s corporate rate. Granted, $20 is better than $0, so this is probably better than the Uninsured Motorist Coverage above.

6. Why a Six Month Policy?

Some insurers prefer to write a 6 month policy instead of annual, because:

  • They can adjust rates more frequently. If they file a rate change, the new rate takes effect after 6 months, not 12.
  • They can charge you for an accident sooner. Same logic applies. The surcharge is applied at renewal, which is 6 months instead of 12.
  • The rates look lower. In fact our client first thought this quote was half the price he was paying now. Turns out, because he has an annual policy, the price was almost the same. And, his current coverage was WAY better.

Related: What to Expect from Maine Auto Insurance Rates in 2017

There’s A Better Way to Shop for Maine Auto Insurance

If you are looking for a second opinion on your Greater Portland Maine car insurance, contact Noyes Hall & Allen in South Portland. We’re independent. That means we offer the choice of 9 preferred insurance companies. We’ll also take time to customize our proposal to YOUR needs, not some fictitious Impreza-driving-45-year-old married-male. We’ll recommend coverage for you and tell you why. You can choose whether or not it’s a good deal for you.

If you’re a self-service type, you can get up to 7 Maine car insurance quotes in 10 minutes on our web site. Don’t worry: if you don’t see anything that that rocks your world, we won’t hound you afterwards. But we’re always happy to answer any questions you have during the process.

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