Maine Auto Insurance Requirements

Maine has some of the most comprehensive mandatory auto insurance requirements in the United States. Understanding these requirements is critical for both the exam and professional practice.

Mandatory Liability Coverage: 50/100/25

Maine's Minimum Liability Limits

Maine law (Title 24-A MRS § 2159) requires ALL drivers to carry minimum liability insurance:

Bodily Injury Liability:

• $50,000 per person per accident
• $100,000 per accident (total for all injured persons)

Property Damage Liability:

• $25,000 per accident

This is commonly referred to as "50/100/25" coverage.

What the Numbers Mean

Split Limits Explained

Example Scenario:

A Maine driver causes an accident injuring 3 people:

• Person A: $60,000 in injuries
• Person B: $40,000 in injuries
• Person C: $30,000 in injuries
• Total: $130,000 in bodily injury claims

With 50/100/25 coverage:

• Person A receives: $50,000 (limited by per-person limit)
• Person B receives: $40,000 (below per-person limit)
• Person C receives: $10,000 (remaining from $100,000 per-accident limit)
• Total paid by insurance: $100,000
• Driver personally liable: $30,000 (the shortfall)

Exam Tip: The per-person limit applies FIRST, then the per-accident limit caps the total. This is why 50/100/25 is minimum—many drivers need higher limits.

Comparison to Other States

Maine requires significantly higher minimums than most states, providing better consumer protection.

Uninsured/Underinsured Motorist (UM/UIM) Coverage

Required UM/UIM Coverage

Maine REQUIRES UM/UIM coverage for all drivers:

Minimum Requirement:

• UM/UIM must match your bodily injury liability limits
• If you carry 50/100 liability, you must have 50/100 UM/UIM
• If you carry higher liability (e.g., 100/300), UM/UIM must match unless you reject higher limits in writing

What UM/UIM Covers

Uninsured Motorist (UM):

• Covers YOU and YOUR PASSENGERS when hit by a driver with NO insurance
• Protects against at-fault drivers who broke the law (no insurance)
• Pays medical bills, lost wages, pain and suffering

Underinsured Motorist (UIM):

• Covers YOU when hit by driver whose insurance is inadequate
• Example: At-fault driver has only 50/100, but your injuries are $150,000
• UIM pays the difference between their insurance and your damages (up to your UIM limit)

Why Maine Requires UM/UIM

Statistics show:

• Approximately 10-15% of Maine drivers are uninsured at any time
• Hit-and-run accidents where driver is never identified
• Protection for innocent victims of negligent uninsured drivers

Consumer Protection Philosophy: Maine requires UM/UIM to protect victims when negligent drivers cannot pay for damages they cause.

Rejection of Higher UM/UIM Limits

If you increase liability limits:

Scenario: Driver increases liability from 50/100/25 to 100/300/50

• Default: UM/UIM automatically increases to 100/300 to match
• Option: Driver may reject higher UM/UIM limits in writing
• Minimum: Cannot go below 50/100 UM/UIM (Maine minimum)

Written Rejection Required: Insurer must offer matching UM/UIM; driver must sign written rejection to decline.

Exam Tip: Maine UM/UIM coverage is for bodily injury only. Property damage from uninsured motorists is typically covered under the insured's collision coverage.

Medical Payments (Med Pay) Coverage

Mandatory $2,000 Med Pay

Maine is one of the few states that requires Medical Payments coverage:

Minimum Requirement:

• $2,000 per person Med Pay coverage
• Required by Maine law
• Cannot be rejected or waived

What Med Pay Covers

Medical Payments coverage is "no-fault" insurance that pays:

Covered Medical Expenses:

• Doctor visits and hospital bills
• Ambulance costs
• X-rays, surgery, and medical procedures
• Prosthetic devices
• Dental treatment
• Funeral expenses (within limit)

Who's Covered:

• Named insured
• Family members in household
• Passengers in insured vehicle
• Named insured/family when pedestrians hit by vehicle

Med Pay vs. Health Insurance

Key Differences:

Coordination of Benefits: Med Pay typically pays first, then health insurance covers remaining expenses.

Higher Med Pay Limits

While $2,000 is the minimum:

Optional Higher Limits:

• $5,000, $10,000, $25,000, $50,000, $100,000
• Recommended for adequate medical coverage
• Relatively inexpensive to increase
• Especially important if limited health insurance

Example:

Passenger injured in accident has $15,000 in medical bills:

• Med Pay ($5,000 limit): Pays $5,000
• Health insurance: Pays remaining $10,000 (subject to deductible/copays)
• Patient responsibility: Health insurance deductible/copays

Financial Responsibility Law

Proof of Insurance Required

Maine's Financial Responsibility Law requires:

All drivers must:

1. Maintain continuous auto insurance meeting Maine minimums
2. Carry proof of insurance in vehicle at all times
3. Provide proof when requested by law enforcement
4. File SR-22 if required (high-risk drivers)

Proof of Insurance Documents

Acceptable Proof:

• Insurance ID card issued by insurer
• Copy of policy declarations page
• Electronic proof on smartphone (most insurers offer apps)
• Certificate of insurance

Information Required on Proof:

• Policyholder name
• Policy number
• Policy effective and expiration dates
• Vehicle(s) covered
• Coverage types and limits
• Insurer name and contact

Failure to Maintain Insurance

Penalties for driving uninsured in Maine:

1. First Offense:

   • License suspension (minimum 30 days)
   • Fine: $100-$500
   • Registration suspension
   • SR-22 filing required for 3 years

2. Subsequent Offenses:

   • Longer license suspension
   • Higher fines ($500-$1,000+)
   • Possible jail time
   • SR-22 filing for longer period

Vehicle Registration Suspension: Maine suspends vehicle registration when insurance lapses, making it illegal to operate the vehicle.

SR-22 Certificate of Financial Responsibility

What is SR-22?

SR-22 is not insurance—it's a certificate filed by insurer with Maine Bureau of Motor Vehicles proving driver maintains required insurance.

When SR-22 Required:

• DUI/OUI (Operating Under the Influence) conviction
• Driving without insurance
• Multiple traffic violations
• License suspension requiring reinstatement
• At-fault accident while uninsured

How SR-22 Works

1. Driver Requests: Contact insurance company to file SR-22
2. Insurer Files: Company electronically files SR-22 with Maine BMV
3. Filing Fee: Typically $25-$50 processing fee
4. Duration: Usually required for 3 years
5. Continuous Coverage: Any lapse triggers new suspension

If Insurance Lapses:

• Insurer immediately notifies Maine BMV
• License automatically suspended
• New SR-22 required to reinstate
• 3-year period may restart

SR-22 Cost Impact

SR-22 drivers typically face:

• Higher insurance premiums (high-risk status)
• Limited insurer choices (many don't accept SR-22 drivers)
• SR-22 filing fee
• Possible reinstatement fees

Important: SR-22 requires continuous insurance for entire 3-year period. Even one day lapse causes license suspension and restarts the clock.

Maine-Specific Auto Insurance Features

Winter Driving Considerations

Maine's harsh winters affect auto insurance:

Coverage Considerations:

• Comprehensive Coverage: Important for snow/ice damage to vehicle
• Collision Coverage: Recommended for winter accident damage
• Roadside Assistance: Valuable for winter breakdowns
• Rental Reimbursement: Helpful during winter repairs

Common Winter Claims:

• Sliding on ice into other vehicles (collision)
• Snow/ice falling from buildings onto vehicles (comprehensive)
• Frozen engine damage (comprehensive - if not from neglect)
• Windshield cracks from temperature changes (comprehensive)

Moose and Wildlife Collisions

Maine has significant wildlife collision risk:

Coverage:

• Comprehensive Coverage pays for animal collisions
• Moose, deer, and other wildlife very common
• Can cause total loss (moose collisions often severe)

Statistics:

• Thousands of vehicle-wildlife collisions in Maine annually
• Peak season: October-December (rutting season)
• Most common: Hancock, Aroostook, Penobscot, Washington counties

Tourist and Out-of-State Drivers

Maine's summer tourism creates unique exposures:

Producer Considerations:

• Rental car coverage
• Non-owner policies for tourists
• Coverage verification for out-of-state drivers
• International visitors (need adequate coverage)

Personal Injury Protection (PIP) - Optional

Maine is NOT a no-fault state (unlike neighboring Massachusetts):

PIP Coverage in Maine:

• Optional (not required)
• Available as additional coverage
• Provides no-fault medical and lost wage benefits
• More comprehensive than Med Pay
• Higher limits available

PIP vs. Med Pay:

Auto Policy Structure

Personal Auto Policy (PAP) Sections

Standard Maine auto policies follow the Personal Auto Policy (PAP) format:

Part A: Liability Coverage

• Bodily injury liability (minimum 50/100)
• Property damage liability (minimum 25)

Part B: Medical Payments

• Minimum $2,000 required
• Optional higher limits

Part C: Uninsured/Underinsured Motorists

• Minimum matches liability (50/100)
• Optional higher limits (if liability increased)

Part D: Physical Damage

• Collision (optional)
• Other Than Collision/Comprehensive (optional)

Part E: Duties After Accident

• Reporting requirements
• Cooperation clause
• No voluntary payments

Part F: General Provisions

• Policy period
• Territory
• Changes and cancellation