How Much Does Car Insurance Cost For a 16-Year Old in Maine?

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Parents of young teens often dread the day they start driving. They worry about their safety, the responsibility for others in the car or on the road, and the expense. Between insurance, gas, and maybe  buying another car, it’s expensive to have a teen driver.

teen driver by jamesstewartThe cost to insure a teen driver varies greatly, depending upon driving record, vehicle types, use of the vehicle, and coverage level. Rates and rules vary by insurance company, too. Most Maine insurers only require you to add a driver when they get their license, not their learners’ permit.

If everyone’s driving record is clean, your teen has a vehicle at their disposal most or all of the time, and that vehicle has comprehensive and collision coverage, expect to pay $1,500 to $2,000 extra per year to add a teenager to your policy. If they buy their own vehicle and insurance, it can cost more than that.

Strategies to Reduce the Cost of Car Insurance for Your Teen.

  1. Drop collision coverage on the vehicle.  Yearly savings: about $500 – $750.
    If your teen is the primary driver of a vehicle that is paid off, you can choose to self-insure collision damage for that vehicle.
    Downside:  If the vehicle is damaged in an accident, your insurance company will not pay to repair it.
    Surprising Fact: Teens may drive more carefully, knowing that if they’re in an accident, the vehicle may not be repaired or replaced.
  2. Have fewer cars than drivers. Yearly savings: about $1,000 to $1,500.
    If your child does not have a vehicle available for everyday use, they are considered an “occasional operator”. Most insurers charge a lower rate for these drivers.
    Downside: You have to share a vehicle, which can be inconvenient.
    Surprising fact: Many families start with this approach, and move to option #1 as the teen gains driving experience.
  3.  Get the Discounts You Deserve. Yearly savings: $50 to $100.
    Most insurers offer Maine auto insurance discounts for teens who are honor roll students or who complete a driver education program.
    Downside: none. Who doesn’t like saving money, or encouraging your teen to make good grades?
    Surprising Fact: Some insurers offer auto discounts for being a non-smoker, low-mileage driving, or displaying safe driving habits.

If you’re in the market for auto insurance in Greater Portland, get 5 free car insurance quotes online, or call Noyes Hall & Allen at 207-799-5541. If you live in another area, we recommend calling a local independent agent. Look for an agency that can offer you a choice from Maine’s best auto insurance companies, and provide professional local service.

 

Photo credit: Teen driver by jamesstewart is licensed under CC BY 2.0

How Does Getting a Speeding Ticket Affect Your Insurance Rates?

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Police officer with radar gun
Photo credit: NY State Police

Getting a traffic ticket is one of life’s indignities. It’s expensive, embarrassing, and – depending on who’s in the vehicle with you, or who drives by while you’re pulled over – hard to live down. It might ruin your day, but in most cases, if you stay out of further trouble, you won’t have to regret it for too long.

How long do tickets stay on your record? Most insurance companies price insurance using the last 3 years of your driving record. Some companies use a 5 year experience period.

Will my rates go up if I get one ticket?

The good news is that one ticket USUALLY isn’t going to drive your Maine Car Insurance Rates up too much. If it’s a speeding ticket, and you were going less than 20 miles over the speed limit, most insurance companies consider this a “minor violation”. Passing a stopped school bus, driving more than 20 mph over the limit, and other more serious infractions have more serious consequences on your insurance rates.

Have the insurance rules about tickets changed?

Just a few years ago, most insurance companies had 3 underwriting tiers: superior, preferred and standard (high risk drivers went to non-standard insurers). If your driving record was squeaky clean when you bought your car insurance, you got the auto insurance discounts associated with the superior rate; if you had one ticket, you were usually still “preferred”. They usually didn’t bump you from your tier if you later had one minor ticket. But, if you got 2 tickets, they would probably knock you down a tier.

Now, car insurance companies have created 50, 75, even 100 pricing tiers, based on an “insurance score” that factors information about you, your vehicle, your driving record, and more. This scoring algorithm varies by company. They consider it proprietary, and guard it closely. Consequently, agents – and customers – don’t know for sure what caused their rates to be high or low. We suspect that insurance companies do now charge for every accident or violation, although probably not a lot for the first ticket.

Should I Shop My Insurance if I have a ticket?

Every insurance company’s rates are different. If you have just one ticket, and you think you’re paying too much for car insurance, check prices. If you live in the Portland area, auto insurance agents like Noyes Hall & Allen would be happy to provide a quote. We’ve even created a way for you to get your own online Maine auto insurance quote from 5 of our companies.It doesn’t hurt to check around; the worst you’ll find is that the rate you’re paying is a good one.

Space Heaters: How to Stay Warm AND Safe

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It’s getting colder in Maine. With today’s high fuel prices, many of us try to delay turning on the heat as long as possible. For some people, that means using a space heater to “take the chill off”. As with any appliance, it’s important to know the associated hazards and best practices for avoiding them.

Fires and Burns

The Consumer Product Safety Commission estimates that space heaters are involved more than 25,000 home fires every year, causing more than 300 deaths.The SPSC estimates that another 6000 people, many of them children, visit emergency rooms for burns from touching hot surfaces.

  • Check the wires, fuel lines and tanks often to make sure they’re in good condition.
  • Keep combustibles at least 3 feet away from space heaters.
  • Leave your space heater on the floor, unless it’s designed otherwise.
  • If you smell gas, turn off all controls, open a window, and leave the area.
  • Propane is heavier than air. Avoid electrical switches or appliances if you smell gas. And, of course, no smoking!
  • Do not use electric space heaters in wet areas, such as the bathroom.
  • Keep children and animals away from space heaters.

Carbon Monoxide Poisoning

CO is an odorless, colorless gas produced by incomplete combustion of gasoline, natural gas, propane, kerosene, coal or wood. Symptoms of CO poisoning include:

  • Dizziness
  • Nausea
  • Headache
  • Fatigue
  • Weakness

Prolonged exposure can cause lack of coordination, confusion, loss of consciousness, and even death.

Modern space heaters (made after 1983) have sensors that automatically shut off the appliance if a reduced level of oxygen is detected. In addition, your best protection is a good, working CO detector.

If you have property in Maine, and have questions about home, renters or condominium insurance, our Portland area insurance agency can help. We’re locally owned, and represent many of  Maine’s best insurance companies. That means we can provide you with customized choices.  Contact a Noyes Hall & Allen agent for answers!

Here’s to a mild – and safe – heating season!

Should You List Jewelry on Your Homeowners Policy?

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That was the most common question at Saturday’s Jewelry Checkup Event that we hosted along with Days Jewelers.

Does Homeowners Insurance Cover Jewelry?

In short: yes, but…

  • Theft of jewelry is limited, usually to $1,500 or less.
  • Your property deductible applies, usually at least $500, often more.
  • Personal property is only covered for 16 “named perils” on the average homeowners policy. For example, ‘theft” is covered, but “losing” something is not. The 16 perils are fine for things like TVs and clothing, but not jewelry. Perils, like losing a gemstone aren’t covered.

5 Reasons to List Your Jewelry on Your Homeowners Policy

  • The value is agreed to before a loss. Instead of having to prove the worth of your jewelry after it’s gone, you list each item with a detailed description and set a value on each piece. Items over $5,000 usually require a professional appraisal every 5 years.
  • Broader coverage. Theft is covered; so is loss of a gemstone – even loss of an earring that’s discovered after you return from a night on the town, or an engagement ring lost at the beach.
  • No deductible applies. You can save money on homeowners insurance by increasing deductibles without having to worry about paying for a lost earring or a missing gemstone.
  • Preservation of limits for your other property. Unless it’s listed, your jewelry falls under your “personal property” limit, which is a percentage of your home’s building insurance limit. If you have a lot of expensive jewelry, even if it’s damaged by a covered peril like fire, you may not have enough “personal property insurance” to replace both your jewelry and your other belongings. Listing your jewelry separately saves that other insurance for your belongings.
  • It’s affordable. Separately listing $5,000 of jewelry usually costs less than $40 a year.

Insurance companies call listing items such as jewelry, furs or fine arts separately on your homeowners policy “scheduling”.

Does your policy declarations page say “Scheduled Personal Property”?

If not, you may want to call your Maine insurance agency to add it.

If you are a Noyes Hall & Allen client, and want to add jewelry, you can request it here, or call the office at 207-799-5541.

If you  are not yet a client, live in Southern Maine and have questions about homeowners,  insuring an engagement ring, renters insurance or condo insurance, call Noyes Hall & Allen agent at 207-799-5541. We’re happy to help.

Recent Law: Texting & Driving Illegal in Maine

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As of this week, Maine is the 33rd state to ban texting while driving. The recently enacted law includes a minimum $100 fine for drivers caught sending electronic messages including texts, emails or instant messages from a mobile device.  The law stops short of banning hand-held cellphone use by drivers. Several Atlantic states, including Connecticut, New York and New Jersey prohibit drivers from using hand-held devices.

map of texting bans by state as of Sepember 2011
source: Insurance Institute for Highway Safety (iihs.org.laws/maptextingbans.aspx)

It remains to be seen whether Maine auto insurance rates increase for drivers who are caught texting while driving. More likely, scofflaws may lose Maine Auto Insurance Discounts if their MVR (motor vehicle record) shows a violation.

It’s unclear how Maine commercial vehicle insurance policies might be affected if a business’ fleet drivers are ticketed for texting & driving.   In general, commercial underwriters have a higher threshold for violations before surcharging a policy.

If you have questions about your personal  auto or business vehicle insurance, contact Noyes Hall & Allen Insurance agency in South Portland at 207-799-5541. You can also request a Maine car insurance quote or a Maine business insurance quote on our web site.

Am I Covered if a Falling Satellite Hits My House or Car?

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I realize I’m out of the loop, but was I the only one surprised to wake this morning to news that a huge piece of space junk is headed straight for Earth?

As usual, my friend Sabine was way ahead of me. She had already tweeted this insurance question (and blog post idea!):

 

 

The Answer to Every Insurance Question is: “It Depends”.

If you have  Maine homeowners insurance, business property insurance, or anything other than the most basic kind of property policy, you’re covered for damage caused by “aircraft, including self-propelled missiles and spacecraft”.

If you have  Maine car insurance, commercial vehicle insurance, or contractors’ equipment coverage, and have included “other than collision coverage”, you’re covered against hurtling space junk. If you bought “liability only” coverage, you’re taking your chances.

Fortunately, your chances of getting hit are infinitessimally low. Probably.

If you live in Southern Maine, and  have questions about your insurance, our Portland area insurance agency can help. Call Noyes Hall & Allen Insurance at 207-799-5541. Or, post on our wall by finding Noyes Hall & Allen on Facebook or tweet us @NHAIns on Twitter.

 

What is “Dwelling Fire” Insurance?

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Most Maine home insurance is written on a homeowners policy. But certain types of property do not qualify for homeowners policies, either because of the characteristics of the property or its occupancy. Properties that do not qualify for Maine homeowners insurance are often insured on a Dwelling Fire policy.

Does a Dwelling Fire Policy Only Cover Fire?

The name is misleading. All Dwelling Fire policies cover more than just fire. How much more depends on which policy form you have.

Dwelling Fire policies offer 3 common flavors: DP-1, DP-2 and DP-3. Homeowners policies also have 3 options, HO-1 through 3. The vast majority of Maine homeowners policies are HO-3; likewise, DP-3 is the most common coverage level found on Maine Dwelling Fire policies.

DP-3 Dwelling Fire policies and an HO-3 Homeowners policies have very similar coverage for buildings. Building coverage is considered “open perils”: unless a cause of loss is excluded, it is covered. The lower-numbered policies provide more restrictive “named perils” building coverage; only specifically listed causes of loss are covered. The DP-2/HO-2 building section covers 12 named perils. The DP-1/HO-1 only covers 4: Fire & lightning; windstorm; explosion; and vandalism.

The Difference Between a Dwelling Fire Policy and a Homeowners Policy

There are several key differences between the two policies.

  • Dwelling Fire policies do not automatically include Liability or Medical Payments coverage.
  • Theft of contents is not covered by Dwelling Fire policies (you can sometimes purchase a small amount for an additional premium).
  • Dwelling Fire policies typically don’t permit optional coverage extensions that are common to homeowners policies (e.g. water backup; identity theft; fallen tree removal; food spoilage).

 

Related Post: What’s the Difference Between a Homeowners Policy and a Dwelling Fire Policy? 

Why do I need to Buy a Dwelling Fire policy?

A Dwelling Fire policy may be required for:

  • Property rented to others.
  • Seasonal property.
  • Other properties as determined by an insurer’s Underwriting Department.

A Dwelling Fire policy covers your property for more than fire. Coverage is generally not as broad as a homeowners policy, but it’s not as limited as the name implies. For advice about your particular situation contact your Maine insurance agency or Noyes Hall & Allen at 207-799-5541.

Do I Have to Wait for the Insurance Company Before Repairing Maine Storm Damage?

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Hurricane Irene visited Maine yesterday. Fortunately, the southern Maine wind damage was mostly limited to fallen trees and limbs – at least judging by our clients who contacted us to report an insurance claim.

The most common claim question today is “A tree fell on my house. Can I remove it, or do I have to wait for the insurance company to inspect it”? As this prior post explained, fallen trees aren’t always covered by insurance. But, if a tree lands on your home or other structure, your homeowners or business policy probably covers both the damage it causes and the cost to remove it.

Generally, it’s fine to remove the tree from your home or driveway to assess the damage and to  make temporary repairs to preserve your property. You don’t need to wait for the insurance adjuster to see it; they can usually tell what happened by the scars that the tree or limb left behind.

5 Things to Do if a Tree Falls on Your Property

  • Document the damage with digital photos or video.
  • Take action to preserve your property from further damage. Remove the tree from the structure, make temporary repairs, or move property indoors.
  • Save damaged property for the insurance company to inspect.
  • Schedule – but don’t begin – permanent repairs. Repair contractors are very busy after a natural disaster. The earlier you schedule your job with a reputable, experienced and insured contractor, the better the chance of your property being repaired faster. Do not start repairs until the insurance company has a chance to see your damage.
  • Report your claim. Noyes Hall & Allen clients can contact an agent to start the process.

If you have questions about Maine homeowners insurance, condo insurance, renters insurance or insuring your Maine business property, call Noyes Hall & Allen at 207-799-5541.

Does a Maine Homeowners Insurance Policy Cover Hurricane Damage?

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That may be the most popular insurance question of this week as Hurricane Irene curves its way toward the East Coast.

The Good News…

Most Maine homeowners insurance policies cover wind damage, wind-driven rain, damage to a home from falling trees, and other common types of hurricane damage.

BUT…

In the past 5 years, many insurers have introduced special deductibles for property located within a quarter-mile of the coast. Sometimes, the deductible applies only in the case of a hurricane, or other “named storm”. Other insurers’ policies have higher deductibles for all wind damage, even from a February nor’easter.

These deductibles are usually expressed as a “percentage deductible”. Common deductible percentages are anywhere from 1 to 3% of your property insurance amount. In other words, on a $250,000 home, a 2% wind deductible would be $5,000, and would apply to any wind damage.

You should check your own policy to find out what kind of deductible is on your homeowners, Maine renters insurance or Maine condo insurance policy, and how large that deductible is.

What About Other Hurricane Claims?

Standard homeowners policies do not cover damage from loss of power, such as food spoilage or basement water backup caused by a sump pump not working. Often, you can buy some power failure coverage.

Likewise, homeowners policies have little or no insurance coverage for fallen trees, unless they strike a structure or block a driveway. Some insurers sell endorsements that offer limited coverage for this.

Finally, flood damage is NOT covered by homeowners policies. You must buy NFIP Maine flood insurance to have flood coverage.

FMI

For more information about Maine hurricane insurance for homes, autos, condos, boats or other property, contact Noyes Hall & Allen Insurance at 207-799-5541. If you are already a client, and need to report a Maine insurance claim, visit our web site, or call the number above for instructions.

Hitting Miranda Cosgrove’s Bus: A Liability Insurance Fable

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If your household is like mine, you have an iCarly fan. Teens and tweens across America were distraught by news that iCarly’s star Miranda Cosgrove’s ankle was broken in a bus accident, causing her to postpone her popular “Dancing Crazy” summer tour. Fortunately, no one was seriously hurt.

How Much Auto Liability Insurance Should I Buy?
That’s a question we hear often. Many people who shop for Maine auto insurance have purchased “split liability limits”, which contain separate limits for bodily injury and property damage. On split limits policies, Bodily injury is also subject to a “per person” sub-limit. If you have one of these policies, your liability coverage might say 100/300/50. This means you have $100,000 of bodily injury coverage per person, subject to a $300,000 maximum per accident; and $50,000 property damage.

What If You Cause a Serious Accident?
Let’s pretend that you were responsible for the accident that injured Miranda Cosgrove, and you had those common Maine liability limits shown above.

There were 5 people on the bus. Would $100,000 be enough to pay for any one person’s medical bills? Would $300,000 be enough for all the bus’ occupants? Maybe. Maybe not. What if our fable had a commuter bus full of people? Uh-oh.

And that’s just the injuries from one vehicle. What about the damages from lost income due to the postponement of Miranda Coscrove’s tour? What about any other vehicles that may have been involved?

Who Will Defend Me Against a Liability Suit?
This fable has a knight in shining armor! Your auto liability insurance pays defense costs – regardless of whether the suit is groundless, and in addition to the limits of your policy. As long as you have liability limits remaining, your insurer will defend you.

What if You Don’t Have Enough Liability Insurance?
 If you’re legally liable for damages, and your insurance isn’t enough to pay them, two bad things happen.

  • Your defense coverage stops. That means you have to pay for your own legal representation to defend yourself.
  • Your assets and future earnings are fair game. You could be forced to turn your home, investments, savings or other assets into cash to pay the damages. If that’s not enough, the court can garnish your future wages.

That’s a Fable. What Are the Chances?
Fortunately, they’re slim. But, celebrity sightings in Maine are common, especially in summer.  And, you might be unlucky to meet a celebrity in the worst way possible – by accident.

Remember, you don’t buy insurance to protect you from the probable – you buy it to protect your assets from financial disaster.  Buy enough to protect your assets and your future earnings. We generally recommend against split limits, and often suggest that our clients consider Maine personal umbrella insurance. For custom advice about your situation, or a Maine auto insurance quote, contact Noyes Hall & Allen agent at 207-799-5541 – and live happily ever after.