When looking for Maine car insurance there are some important things to know. You must know what Maine law requires and for your safety and protection you should also know how to assess the financial stability of a company. Knowing these two things will help you find the car insurance that is right for you. It will give you the peace of mind that your insurance company will be able to fill any claims you may need to file.
Required Maine Car Insurance Laws
Maine is different than several other states in that the only way to prove financial responsibility is to carry auto insurance. The requirements of this coverage are medical payments coverage, liability insurance, and uninsured motorist's coverage. The requirements are $50,000 for one person for injury or death, $100,000 for more than one person for injury or death, and $25,000 for property damage.
Once you find coverage, you need to let the Bureau of Motor Vehicles know this. Maine state law also states that you must carry proof of your insurance with you. Should you be pulled over for any reason and do not have proof of insurance, your license could be suspended. Once you get proof, you must go to the Bureau of Motor Vehicles and fill out a form.
Assessing Financial Stability
Assessing the financial stability of an insurance company before you purchase a policy is crucial. If a Maine car insurance company cannot pay your potential claims, it is not worth considering. A financial rating is more than just a monetary stability. Also taken into consideration are other factors such as operating performance. In order to assess a company's financial stability, an outside party is needed. That is where Standard and Poor's Ratings comes in.
Standard and Poor's rating company rates over 3,000 insurance companies. It gives insurance companies ratings similar to a report card. An extremely strong rated is labeled AAA , AA means very strong, A equals strong, BBB means good, BB is marginal, B equals weak, CCC is very weak, CC is extremely weak, and R is under supervision. Going to the Standard and Poor's website gives you access to any company's rating.
Generally, a rating of BB or lower should give you reason to questions a company's financial stability. The potential risks of going with a company in a BB or lower rating category are greater than any strengths the company might have. You do not want to be the one left holding the bill, if you insurance company fails.
Along with a company's rating, you should compare car insurance rates and coverage with other companies. If a company's quote is much higher than other companies that may be reason to question their overall security. Make sure you get quotes from several companies in addition to checking ratings.
By understanding Maine car insurance law and checking a company's financial stability, you can find an auto insurance policy that works for you. Shopping around will give you many rates and coverage options to choose from.