The state requires that all motorists carry a liability policy. As stated by the Maine auto insurance laws, drivers must have the following limits as a minimum; $50,000 for bodily injury to one person, $100,000 for bodily injury to two or more people, and $25,000 for property damage or a combined limit of $125,000. This covers injuries and damages suffered by other parties caused by a policyholder.

Bodily Injury Liability compensates for claims that the insured has caused to another party due to a traffic accident. This will also protect the policyholder for damages such as medical expenses, lost wages, and pain and suffering. The policy will also compensate for accidents caused by family members who reside with the insured (it is required that any driver within the household be stated on the policy), and in the event that a person is using the insured’s automobile with their permission. Property Damage Liability will pay for the damages done to another party’s property such as an automobile, fence or house caused with the policyholder’s car. One should keep in mind that this does not provide compensation to the insured for their injuries or property.

Additional Mandatory Car Insurance Requirements

Motorists in the state must also have Uninsured/Underinsured coverage. This type of policy covers the insured directly for cost of medical expenses for bodily injury in the event that the policyholder is struck by a driver who does not carry a policy, does not have adequate limits to pay for medical costs or if victim of a hit and run. The Maine Bureau of Insurance states that the limits must be equal to the amount of liability that the consumer has purchased. The insured may however, choose to purchase limits lower than that of their liability limits but a rejection must be given in writing on a form provided by their insurer before the effective date of the policy. Although they can buy a lower limit, it cannot be lower than $50,000 per person and $100,000 per accident.

In addition, drivers are also required to carry Medical Payments. As of January 1, 2008, policyholders must have at least $2,000 in medical payment coverage on their policies. This addition to a policy will cover medical or funeral expenses if the insured or others are hurt while driving or riding in the auto. It will also cover the policyholder and/or members of their family if they are struck by a vehicle while walking or if riding in another automobile. The required limit is quite low, therefore it may be wise to consider raising it unless protected under a health insurance plan that covers such losses.