Reader’s Question:

I am a full time student in Vermont but I am licensed here in Portland, Maine. I am planning to register my vehicle in Vermont. My question is: What determines my car insurance rate? is it in Michigan where I am licensed or where the vehicle is registered?

Robert

Portland, ME

Your auto insurance rates are determined by a different factors however the location of where the vehicle is registered, driven and kept will determine the car insurance rates more than where you are licensed in.

You will need car insurance for Vermont if that is where the vehicle is registered, so the car insurance rate premium will be based on Vermont car insurance rates and not where you are licensed in, in your case you are licensed in Portland Maine.

The state of Vermont’s financial responsibility law notes that no automobile owner or driver of the car required to be licensed shall drive or allow the operation of the automobile upon the roadways of the state without having in effect a vehicle liability bond or policy in the amounts of at least $25,000.00 for one person up to $50,000.00 per accident and $10,000.00 for property damages in any one accident. Basically It is needed to have bodily injury and property damage liability coverages on your automobile for at least these amounts.

Tags: auto insurance, car insurance rate

Reader’s Question:

A friend will be moving in with us for an unknown amount of time and he does not own a car but will be needing to drive our vehicle, how would we insure her to drive our vehicle in Portland, Maine?

Harry

Portland, ME

Insurance carrier’s rules with regards on how to insure an individual staying in your household very but most insurance carriers will require you to add your friend to your auto insurance policy as an additional driver. Most insurance carriers require that all licensed household members be listed on your insurance policy so that coverage is properly extended to them.

Speak to your insurance provider in Portland, Maine to know what your specific insurance company requires you to do so that your friend that will be staying with you can drive your cars and be insured to do so under your auto insurance policy. It will likely be adding your friend as driver to your car insurance policy though your insurance company may say that he is already covered under your current insurance policy terms.

Normally your friend would not be able to get an insurance policy of her own to cover your cars since she does not have insurable interest in the vehicles. She may be able to get a non-owner’s insurance policy but this would only be secondary to your primary insurance liability coverages.

If you want to shop around for cheap car insurance cost in Portland, Maine that will cover everyone in your household, type in your zip code from the space above. If you friend gets her own car she too can shop for inexpensive car insurance quote online.

Tags: auto insurance, car insurance cost, cheap auto insurance

Reader’s Question:

If I have a motorcycle loan, do I need a full coverage on it in Portland?

Henry

Portland, ME

Yes, if you are still paying off your motorcycle from a lien holder then that lien holder will require you to have full coverage on the motorcycle so their asset, is protected by these physical damage car insurance coverages.

Typically it is mandated by your lien holder, who carries the title to your car until you pay off your loan, that you keep full coverage on the motorcycle so that their asset is covered for damages.

If you have a motorcycle loan then you should verify with your lien holder in Portland Maine to check what insurance coverages they require you to have on the motorcycle until it is fully paid off.

Tags: auto insurance, motorcycle insurance

Reader’s Question:

I live in Gorham, Maine and I would like to know if I do not own a vehicle do I still need to have my license insured?

Wilson

Gorham, ME

To get a driver’s license in Gorham, Maine you do not have to show proof of auto insurance. If you do not own a vehicle you are not required to carry car insurance on yourself but when driving other people’s vehicles you will need to be certain their insurance extends to you so that you can provide proof of insurance if requested by police officer.

So keep in mind that while to get a Maine driver’s license you are not required to provide proof of car insurance, when you are driving cars you will want to be sure that the car is insured by the automobile owner and that you are covered by that insurance policy if you were to be in a crash.

Tags: auto insurance, driving without insurance

Reader’s Question:

If I stop driving, take my car insurance off and put my vehicle into storage in Auburn, Maine , how will this affect my future car insurance rates when I want to start driving again?

Billy

Auburn, ME

If you plan on placing your vehicle in storage in Auburn, Maine and removing insurance on it, make sure to verify with your state’s Department of Motor Vehicles in Maine to check what you will need to do with them to comply with state laws. In many states you will need to turn in your plates and registration since the vehicle is off the road and without insurance.

As for the insurance concern, you will likely lose some discounts, such as discounts for renewal and without having an insurance company for a few years or so some insurance carriers may not choose to insure you. Some car insurance carriers will not write you an insurance policy without at least 6 months prior insurance.

Due to what the insurance carriers will see as a gap in carrying car insurance, your auto insurance rates will likely be higher than what they are now when you first put an insurance policy back on the vehicle and started operating it. If you do put your vehicle in storage, when you decide to use it again and need insurance, You can check for cheap auto insurance quote here with companies that will insure you even after a gap in your auto insurance coverage.

Tags: auto insurance lapse, autos

Reader’s Question:

What will be the fine if you drive with a suspended license in Lewiston, Maine?

Mark

Lewiston, ME

Fine amounts for moving violations within the state of Maine including Lewiston are established by the Chief Judge of Maine District Court pursuant to state statutes. Therefore the fine amounts are regularly set by this entity with minimum and maximum amounts authorized by the statute.

There is a site run by the government of Maine in which one can find out what a fine should be for driving with a suspended license. Here you can review your traffic violation record, pay outstanding fines or verify a court date. You are able to obtain this information by typing in the ticket number found at the top right of your citation or ticket.

Now if you were driving with a suspended license due to an OUI conviction there are other penalties that might apply, such as temporary impoundment of the vehicle and 1 to 3 years added onto the suspension, imprisonment, revocation of your driver’s license.

Tags: auto insurance, automobile, Driving without License

Reader’s Question:

In Maine, what is the fine for driving with a suspended license?

Abigail

Portland, ME

Fine amounts for moving violations within Maine state are established by the Chief Judge of Maine District Court pursuant to state statutes. Therefore the fine amounts are set regularly by this entity with minimum and maximum amounts authorized by the statute.

There is a site run by the government of Maine in which one can verify what a fine should be for driving with a suspended license. The website can provide you information on your violation record, pay outstanding fines, verify a court date. You are able to obtain this information by typing in the ticket number found at the top right of your citation or ticket.

Now if you were driving with a suspended license due to an earlier DUI/DWI/OUI conviction there are other penalties that might apply, such as temporary impoundment of the car and 1 - 3 years added onto the revocation or suspension of your driver’s license and imprisonment.

Tags: auto insurance, Driving without License

Reader’s Question:

If I do not get into an accident for a long period of time in Maine, will the insurance company refund some of the premium that I have paid for all those years?

Lisa

Portland, ME

This is not an option on car insurance policies, although there are insurance products that have accumulated cash value, like life insurance. Car insurance does not work like other financial services that we normally pay for. Car insurance is something you buy hoping you never have to use it, and you buy it to protect yourself from losses that you cannot afford. Originally, it was mainly purchased to cover unexpected losses, but over time it has become very common for all drivers to expect to use their car insurance policy.

Car insurance is about spreading out the risk among everyone who purchases car insurance in Maine like in any other states. Car insurance premium goes to help fund losses suffered by the entire group or policyholders. The premium you pay is calculated based upon statistics that it will get used. If this wasn’t the reality then premiums would be higher, or simply you would pay for each claim in its entirety. Your car insurance company works (for themselves and their policyholders) to minimize the amount of risk it takes. It used to be said that the lower the premium, the less a company pays out on claims. But with better systems, companies are able to lower costs for consumers. Buying a car insurance policy online is another example of how companies work to save you money.

Believe it or not, insurance isn’t as profitable as most financial products. A lot of car insurance companies write insurance, particularly homeowners insurance on a loss and make money only on their investment income. This is one reason it is important to understand if your insurance company is rated.

Tags: auto insurance claims, automobile, car insurance

Reader’s Question:

Is Maine state laws on insurance and registration dependent on each other? If there are insurance lapses, would that automatically mean the vehicle registration is revoked? Do insurance companies in Portland report insurance lapses to the state of ME?

Zoe

Portland, ME

Yes. Maine’s Bureau of Motor Vehicles (BMV) requires insurance companies to inform them of a car owner’s insurance lapse or cancellation. The car owner must be able to provide a proof of active insurance in order to prevent the revocation of his vehicle registration. Also, a law called the electronic Notification of Insurance Cancellation Program took effect in January 1, 2005 requiring insurance companies in ME to report the cancellation/termination of mandatory liability insurance coverage on vehicles.

The Bureau of Motor Vehicles (BMV) will send a notice to the owners of vehicles with lapsed/canceled insurance indicating that their registration will be suspended if they do not provide a proof of an active insurance coverage. Car owners are given 30 days from the date of notification from BMV or otherwise registrations will be suspended if evidence of insurance is not provided.

After receiving the notification letter from ME BMV, you must provide evidence of active insurance before the effective suspension date listed at the beginning of that letter. You can send this proof online, by mail, by fax or in person at a BMV location.

Tags: automobile, car insurance rate

Reader’s Question:

I received a speeding ticket in Portland Maine but I have a NY State license. Someone told me that I will not get a deduction in points for my license, is this correct? What about my car insurance? Will it go up?

Naomi

Portland, ME

New York and Maine are both members of the Drivers License Compact (DLC) so the Maine traffic court or ME Bureau of Motor Vehicles will notify the NY State Department of Motor Vehicles that you have received speeding ticket.

The New York DMV though has decided not to record out of state infractions unless from Ontario or Quebec. The Department of Motor Vehicle also does not add points to your driving record for out of state moving violations.

Since the Portland Maine speeding violation is not being placed on your NYS driving record or being assigned points it is unlikely that your insurance provider would see this out of state ticket but not impossible. If they are notified of the ME speeding ticket then it would depend upon your insurance carrier’s rating system if your car insurance rates would go up or not. You can verify about your insurance company’s rating system from your insurance agent or the New York Department of Insurance with whom rates must be filed with.

Tags: auto insurance premium, car insurance rate, insurance, traffic violation