Updated on 06.20.16

Car Insurance in Maine

Kailey Fralick

Thirty minutes of research saved me over $350 a year.

Maine’s a pretty great place to own a car. Auto thefts are down, and a super high percentage of its drivers are insured — both of those things keep the its monthly premiums $50 below the national average. That’s already a pretty sweet deal, but you could make it even better. A half hour of your time and a handful of online quotes is all it takes to save hundreds more on your auto insurance every year. Take me for example: I got quotes from six top-notch insurers and found that the right one could save me over $350.

Progressive turned out to be the best car insurance provider for my budget, but it might not be the best for you. How so? Every provider uses a huge amount of your personal data to determine how much to charge you, including your age, driving history, and even your ZIP code. All that information goes into a proprietary formula that determines your level of risk and consequently, the money you’ll be charged. The only way to find which insurer offers you the lowest rate is to get quotes (start with at least five) and compare them. It’s as simple as that.

Online quotes shouldn’t take you more than five minutes. If you have to do a quote over the phone, expect that to take about 10 minutes or so and know that you may end up on hold for a while. In either case, if you don’t know your average annual mileage or the details of any accidents from the last five years, you should look that up before getting started.

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Enter your zip code to compare rates from some of my top recommendations.

Our Top 6 Picks for the Best Car Insurance in Maine

I started with these six companies and I’d recommend them to anyone in Maine.

Each one received “excellent” or “superior” grades from A.M. Best, a well-known financial strength rating agency. That’s a good sign that they’ll have the funds to pay out when you need them to. They also scored high in the latest J.D. Power customer satisfaction survey, so you don’t have to worry about dealing with slow turnaround times or unfriendly agents.

Insurer My quote
Progressive $306
GEICO $333
Amica $444
Allstate $466
State Farm $593
Liberty Mutual $657

Progressive was my top option for cheap car insurance at $306, but honestly, most of them were pretty competitive. However, Liberty Mutual was my most expensive quote, in part because it required me to purchase at least $50,000 of property damage liability coverage while the other companies let me go with the state minimum of $25,000. That said, you should definitely consider more than the minimum coverage levels. It can seriously pay off in the long run.

Even If You’re Happy, It’s Best to Shop for a New Policy Every Couple of Years

You might not know this, but Insurance companies weigh more than your level of risk when calculating your premium. According to Earnix, 45 percent of big-name insurers mine you personal data (your credit score, your online shopping habits, your social media activity, et cetera) to determine how likely you are to shop for a better deal and they charge you accordingly — a process known as price optimization. Sure, they’ll give you a loyalty discount so it looks like you’re saving money, but oftentimes, these discounts aren’t enough to offset the extra they’re charging you as a sort of complacency fee.

The good news is there’s an easy way out of this. Shop for quotes every year or so to make sure you’re getting the best price. Show your insurer you’re willing to walk away for a better deal and they won’t dare add extra charges to your premium. They want to keep your business so accepting a smaller payment is preferable to losing you to a competitor.

Maine is one of a growing number of states that’s banned price optimization on the grounds that it’s unfairly discriminatory and in violation of state laws that require that rates “shall not be excessive, inadequate or unfairly discriminatory.” The Superintendent of Insurance issued a bulletin to all companies operating in Maine in August 2015, requiring them to eliminate non-risk-related factors from their pricing models within 60 days or risk disciplinary action. If you last purchased insurance before December 2015, it’s probably a good idea to shop around to make sure you’re not being charged an unfair rate.

Maine’s Minimum Coverage

The Bare Minimum

Maine has high minimum coverage requirements in comparison to most states. Residents must have $50,000 of bodily injury coverage per person and $100,000 per accident, plus $25,000 of property damage liability coverage. This coverage takes care of damages to another driver, their passengers, and their property if you cause an accident that damages them.

Residents must also carry uninsured motorist coverage with $50,000/$100,000 minimums and $2,000 of coverage for medical payments. Uninsured motorist coverage pays for damages if you’re hit by someone without insurance or a hit-and-run driver. Medical payments covers the cost of your medical bills, regardless of whether you were at fault in the accident.

The Best Car Insurance is Not Just Cheap Car Insurance

It’s best to go with more than the minimum coverage if you can afford to do so. Consider these facts:

  • The average driver will have an accident every 17.9 years.
  • The average disabling, but nonfatal injury costs $80,700 — and that’s not including property damages.

If I only have the minimum coverage and I get into an accident that leads to an $80,000 injury, my insurance is going to pay the $50,000 it’s responsible for and leave me to pay for the rest. I’m likely to wind up in court being sued for the outstanding $30,000 and that’s a situation I’d rather not end up in.

Raising my liability coverage limits to $100,000 per person and $200,000 per accident would only cost an extra $52 a year with GEICO. And then I wouldn’t have to pay anything out of pocket in the accident scenario above. That peace of mind is worth the extra $4 on my monthly premiums.

You may also be required to purchase collision and comprehensive coverage if you have a lease or loan on your vehicle. This is your lender’s way of making sure they can get their money back, even if you total your car. Collision coverage pays for repairs to your vehicle following a crash with another vehicle or single-car accidents, regardless of who was at fault. Wildlife collisions, theft, vandalism, and natural disasters are all covered under comprehensive coverage.

If You Skip Coverage, It’ll Cost You

Driving without insurance will earn you a fine of $100 to $500 and possible suspension of your license or vehicle registration. You will also be required to file an SR-22, which is a certification filed with the Bureau of Motor Vehicles that tells the state that you have current insurance coverage.

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Enter your zip code to compare rates from some of my top recommendations.

Beat the Average Premium: 9 Ways to Snag Cheap Car Insurance Rates

Shopping around isn’t the only way to save money on your car insurance, you know. In fact, there are nine major ways that you can shave the dollars on your premium without any major changes. Check out the list below to for ways you might be able to cut back.

Nine Ways to Lower Your Car Insurance Rates


Why are Maine’s rates so low?

What to Expect
Average Monthly Premiums
United States $139
Maine $85
Portland $88
Source Quadrant

The combination of a low population density and few auto thefts brings Maine auto insurance premiums down nearly 40 percent below the national average. Spacious populations generally mean there’s less of a chance of accidents, thefts, or vandalism — all of which is music to insurer’s ears. Auto repair and medical costs are usually lower in rural areas as well, so the insurance companies don’t have to pay out as much when you file a claim and they can pass that savings along to you.

Maine also has the second-lowest rate of uninsured drivers in the country, beaten only by Massachusetts. This also earns you a break on your premiums because there’s less risk that insurance companies will have to pay for the damages caused by another driver. Less risk to insurers is always a good thing because it means they can afford to offer you a lower rate.

The Bottom Line

The only way to find a good deal on car insurance is to get a bunch of quotes and compare their rates and coverages. You don’t have to spend a lot of time on it. Even a half hour of research can save you hundreds of dollars every year. And if you can, always purchase more than just the minimum coverage. Damages in an accident can easily exceed $80,000, and without a top-notch policy, you might wind up falling into a deep financial crisis.

Get Quotes Now

Enter your zip code to compare rates from some of my top recommendations.

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