Car insurance in Maine

Posted on September 25, 2014

Here’s a handy summary of the latest available information about purchasing and maintaining insurance for vehicles owned in Maine. This info can be used to custom design the optimal auto insurance coverage package at the lowest possible rates.

Maine Minimum Liability Coverage

Maine state law requires a minimum auto insurance coverage of 50/100/25. That means vehicle owners in Maine must purchase at least $50,000 in Personal Injury Protection, $100,000 coverage for others who are injured, and $25,000 coverage against property damage. Maine and Alaska have the highest minimum required auto accident liability limits in the U.S.

Penalties for Driving Without Insurance in Maine

The penalty for driving an uninsured vehicle in the state of Maine is a fine of up to $500 and a suspended license for 30 days. Repeat offenders face harsher penalties.

Auto Insurance Rates in Maine

Despite the state’s lofty liability minimums, Maine has the lowest average car insurance premiums of all U.S. States. The average annual auto insurance premium in the state of Maine was $808 in 2016. Compare that to the national average of $1,347 at the time. Maine had the lowest average car insurance rate of any U.S. State in 2016. According to analysts at Top50States.com, a number of circumstances contribute to Maine’s low rates. For instance, Maine has the lowest percentage (less than 5%) of uninsured vehicles in America. Maine also has the highest median age (40.7), a low population density, and one of the nation’s lowest crime rates. As an added benefit, Maine is virtually free of major natural disasters like earthquakes, tornadoes and floods.

Low Cost Car Insurance Programs in Maine

As mentioned, the state of Maine already has the lowest average annual car insurance premiums in the United States. But Falmouth has the lowest average premiums in the entire state of Maine. Surely, one way for car owners in Maine to lower their premiums is to move to Falmouth.

Failing that, many carriers offer discounts. Drivers who avoid accidents and moving violations for three years can get an Accident-Free discount or a Good Driver discount. Academic excellence is rewarded with a Good Student discount. People who own more than one car might score a Multiple Auto discount. Senior citizens earn discounts for completing a defensive driving course. Other discounts include the Multiple Policy discount, the Passive Restraint discount and the Vehicle Safety Discount.

Obtaining Auto Insurance Quotes in Maine

According to customer satisfaction ratings and online reviews, the most popular auto insurance providers for drivers in the state of Maine are AAA, Allstate, Esurance, Geico, Progressive, State Farm and Liberty Mutual Insurance. All insurance carriers offer similar deals and discounts. Maine is home to dozens of companies offering car insurance at “rock bottom” rates. Call a few of them to obtain and compare free quotes. If you live in Maine (especially Falmouth), you might just end up with the lowest car insurance premium in the whole USA!

Maine Car Insurance

Maine is known for lobsters, light houses, rocky ports, and cheap Maine car insurance. In fact, Maine is the cheapest state in the nation, on average, to buy car insurance.

However, drivers in the state of Maine can lower their annual car insurance rates even more with just a hint of preparation. Here’s where you can learn everything you need to know about reducing the premium rates on your Maine car insurance policy.

This page features Maine zip code demographics, Maine poverty stats, Maine unemployment rates, Maine population info, Maine median incomes, and other factors affecting car insurance rates in the state of Maine.

See what types of car insurance coverage drivers in Maine need, and the insurance requirements mandated by Maine state laws. Review a list of the 10 largest car insurance companies in the state of Maine, along with a list of the 10 largest car insurance companies in the whole USA. Consider the average car insurance premium rates for the state of Maine, by comparing this number to your own Maine car insurance premium rates. Also view a list of the four least expensive and the four most expensive zip codes in the state of Maine to buy auto insurance.

Most importantly, this page reveals how to get every possible discount on Maine car insurance.

Maine Car Insurance Statistics

According to a census bureau estimate from 2015, the state of Maine is home to approximately 1.33 million people. The median resident age in Maine is about 44.6 years, one of the highest median ages among states.

The unemployment rate in Maine is 3.0 percent, which is the 6^th lowest unemployment rate among all 50 states, and far below the national average unemployment rate of 4.4 percent. The poverty rate in Maine is approximately 13.4 percent, which is right around the national average poverty rate of 13.5 percent.

A group of analysts recently calculated that the statewide average annual premium rate for a car insurance policy purchased in the state of Maine was about $925, the cheapest average rate in the nation. Compare this to the overall national average car insurance rate, which was about $1,355 at the time.

Another team hired by the Insurance Research Council studied a sample of Maine drivers, and found that only about 4.7 percent of drivers in Maine are driving uninsured vehicles. Among states, Maine has lowest rate of uninsured drivers. The overall national average rate is 12.6 percent.

The 10 Largest Maine Car Insurance Companies

When looking to purchase a car insurance policy in the state of Maine, some drivers will choose the largest carrier, while other drivers may take the advice of someone they trust. Some drivers might randomly pick a car insurance company, while other drivers might be influenced by cute or clever advertising. All of these approaches will save you time, but conducting your own research will likely save you more money.

There are many major car insurance carriers in Maine, as well as many smaller, regional companies. Still, choosing one should not be difficult. Here is a list of the 10 largest car insurance companies in the United States, followed by a list of the 10 largest car insurance companies in the state of Maine.

A research group determined that the ten largest auto insurance companies in America are 1) Allstate Insurance, 2) State Farm Insurance, 3) Geico, 4) Progressive Insurance, 5) Nationwide Group, 6) AAA, 7) Liberty Mutual Insurance, 8) 21^st Century Insurance, 9) GMAC, and 10) AIG, in that order. These car insurance companies were ranked by the total annual amount of premiums written.

Shown below is the list of the ten largest car insurance companies in Maine. These carriers are also ranked by their total amount of direct annual written premiums: In other words, the company’s total market share in the state of Maine.

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Insurance Group	$83,634	13.63
2	Progressive Insurance Group	$82,428	13.43
3	Liberty Mutual Insurance	$59,588	9.71
4	Berkshire Hathaway Insurance	$50,105	8.17
5	Allstate Insurance Group	$49,371	8.05
6	Concord Group Insurance Pool	$32,036	5.22
7	USAA Group	$24,632	4.01
8	MetLife Personal Lines Group	$21,207	3.46
9	Travelers Group	$19,993	3.26
10	Tower Group Companies	$19,590	3.19

It seems that State Farm Insurance and Progressive Insurance have the most money earned from car insurance policies sold in the state of Maine. These companies are probably alright, but not necessarily the best for you. There is really no such thing as The One Best Maine Car Insurance Company.

Here’s how to study car insurance carriers in Maine to find the one that best suits your style.

Cutting Costs on Maine Car Insurance

As low as car insurance rates already are in the state of Maine, drivers can still find ways to reduce their annual premium rates even further.

One acceptable approach is to read numerous consumer reviews of Maine car insurance companies you might consider. In this way, drivers in Maine can be better informed of the overall customer experience, and this will help them to choose the right company. Follow up by comparing online quotes between these car insurance companies, and finally, take full advantage of every car insurance discount that is available to you.

Next, create a list of the Maine auto insurance companies you prefer. Visit the websites of these companies, and obtain a few online quotes from each one. You can even go as far as to compare quotes between zip codes within the state of Maine. You might enter your employment zip code, your house zip code, and maybe even your school zip code. Above all, be sure to learn about every discount that might possibly apply to your Maine car insurance policy.

Some discounts are automatically subtracted from your online quote, but others you may be able to get by calling an auto insurance agent to ask. To save the most money on Maine car insurance, you need to search and secure those discounts. Different companies emphasize different discounts. Find the company that works best for you. This will likely be the company that offers the biggest discounts.

Among the car insurance discounts for which you might be eligible are Good Student discounts, Senior discounts, Family Member discounts, Safe Driver discounts, Vehicle Safety Feature discounts, Anti Theft Device discounts, Low Mileage discounts, Multiple Policy discounts, Paid in Full discounts, Occupation discounts, and many others. Some car insurance companies even offer a discount for switching to their company from another company.

What Types Of Car Insurance Do Maine Drivers Need?

According to state laws in Maine, all drivers who register vehicles in Maine are required to buy minimum coverage amounts of $50,000 for bodily injury to others, $100,000 in per-accident coverage, and $25,000 to cover the cost of property damage.

Also required for drivers in Maine is another $50,000 (per bodily injury) and $100,000 (per accident) coverage for uninsured and underinsured motorist insurance (UMI).

Furthermore, Maine drivers are legally required to purchase $2,000 in Medical Payments coverage.

In most cases, state minimum coverage requirements are not enough to cover the cost of vehicle repairs and/or medical bills that can result from traffic accidents. However, Maine comes closer than most states to the recommendations of United States insurance experts. Their recommended coverage amounts are $100,000 for personal injury protection, $300,000 coverage against bodily injury to others, and no less than $50,000 to cover the cost of property damage.

Obsolete Maine State Laws

In the state of Maine, it is unlawful to step out of a plane in flight.
In Maine, citizens are required to carry shotguns to church in case of an Indian attack.
In Augusta, it is illegal to walk down the street while playing a violin.
In Biddeford, it is illegal to roller skate on the sidewalk.

Best And Worst Zip Codes For Maine Car Insurance

Maine auto insurance rates vary between zip codes, because of the variance in population densities, unemployment rates, poverty statistics, median income levels, crime rates, the percentage of uninsured drivers on the roads, and other demographics that change between zip codes, and affect Maine car insurance rates.

Here is a list of the four most expensive neighborhoods (on average) in the state of Maine to buy car insurance. Annual premium rates in these neighborhoods can range from about $515 to around $1,385.

Zip Code	Pop Density	Unemployed %	Poverty %
04549 (Boothbay)	0	0%	0%

This Lincoln County zip code, located on the shores of southern coastal Maine less than 50 miles northeast of Portland, is home to fewer than 3,000 people. This neighborhood is the most expensive zip code (on average) in Maine to buy car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
04751 (Limestone)	0	0%	0%

This neighborhood is located in extreme northeastern Maine, less that 10 miles west of the Canadian border. This neighborhood is the 2^nd most expensive zip code (on average) in Maine to buy car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
04680 (Milbridge)	25	12.40%	24.90%

This Washington County zip code has a population of just over 1,000. Although the population density is very light, the unemployment rate is more than four times the 3.0 percent state average. What’s more, the poverty rate is nearly twice the state average in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
04658 (Cherryfield)	60	14.60%	14.60%

This Washington County neighborhood is home to fewer than 1,500 people. The poverty rate is only slightly above, but is still above, the 13.4 percent state average. Unfortunately, the unemployment rate is approaching five times the state average in this zip code.

Now compare the zip codes in Maine that are listed above to the neighborhoods shown below. Here is a list of the four least expensive zip codes (on average) in the state of Maine to buy car insurance. Annual premium rates in these zip codes can range from around $465 to about $1,225.

Zip Code	Pop Density	Unemployed %	Poverty %
04005 (Biddeford)	482	5.50%	16.70%

Roughly 23,000 people live in this York County neighborhood. The unemployment and poverty rates are higher than state averages, but not shockingly so.

Zip Code	Pop Density	Unemployed %	Poverty %
04021 (Cumberland Center)	291	6.60%	4.60%

This Cumberland County zip code is home to about 6,000 residents. The unemployment rate is more than twice the 3.0 percent state average, but the poverty rate is miles below the state average of 13.4 percent.

Zip Code	Pop Density	Unemployed %	Poverty %
04064 (Old Orchard Beach)	1,221	8.30%	13.20%

This York County zip code is home to roughly 8,000 people. Unemployment is on the high side, but the poverty rate in this town is just slightly under the stat average of 13.4 percent.

Zip Code	Pop Density	Unemployed %	Poverty %
04736 (Caribou)	57	6.40%	19.20%

This zip code is situated in Aroostook County, and is home to fewer than 10,000 people. The unemployment and poverty rates are above the state average. It is unclear why this zip code is one of the cheaper places to buy Maine car insurance.

All in all, the state of Maine is home to 485 zip codes covering 16 counties which contain 457 cities, from Auburn to Westbrook and everywhere in between.

There is not too much difference in average annual car insurance premium rates between the cheapest zip codes and the priciest zip codes in the state of Maine. Still, who doesn’t want to save $150 or more in annual premiums on Maine car insurance?

How much money can you save on Maine car insurance?

by admin