What are the requirements for car insurance in Maine?

When you’re at fault for a car accident, your insurance pays for the other driver’s car repairs and any doctor’s bills if they’re injured. Even so-called no-fault states care about fault – medical payments are the only aspect of no-fault insurance that is truly “no fault” and pays out regardless of who caused the accident. There is always “fault” for property damage from an accident.… read full answer

Most states require at least a minimum amount of liability car insurance. After an accident, an insurance company covers the other person’s car and medical bills, up to the limits on the at-fault driver’s policy. Your insurance might pay for your car repairs and doctor bills, too – it just depends on your coverage.

When you buy a car insurance policy, you can choose coverage for your own car repairs, even if the damage is from a collision you caused. You can also choose to buy coverage for your own medical bills. Without those types of insurance, you’re responsible for paying your car repair and hospital bills. Of course, if the other driver is at fault, their insurance covers any damage they caused.

At-fault vs no-fault states

The majority of states are “at-fault,” which means one of the drivers is found responsible after an accident. Then their insurance pays for any damage the driver caused to other people or property. There is also such a thing as “partial fault,” where multiple drivers share partial blame for causing the accident.

In “no-fault” states, each driver’s car insurance covers their own medical bills, along with those of their passengers, no matter the circumstances of the accident. But in some states, one or both drivers are still determined to be at-fault for other types of damage. As a result, the at-fault driver’s insurance may be used to cover non-medical claims. And in any no-fault state, a driver can be sued for medical coverage if the other driver has severe injuries.

How to tell who is at fault in a car accident

After a car accident, the police interview you, the other driver, and any witnesses to find out what happened. They also examine the cars, determine which driver had the right of way, and consider whether anyone broke the law – by driving under the influence or running a stop sign, for example.

Then your car insurance company reviews the police report and any information you give them when notifying them of the accident or during the claims process. The amount of time it takes to reach a conclusion depends on the number of cars and people involved, and the circumstances of the crash.

I was at fault in a car accident – will my rates go up?

Typically, yes – your rates go up after an at-fault accident. However, a spike in your costs isn’t 100% guaranteed. Before deciding to charge you more, your insurance company takes your driving record into account. If this is your first accident on an otherwise clean record, they might not change your rates.

Some companies also offer accident forgiveness, which you can purchase to keep an at-fault accident from affecting your premium.

What to do after a car accident when you might be at fault:

1. Make sure everyone is safe. Move your cars out of danger if you’re in the middle of the road. Call 911 if anyone needs medical attention.
2. Don’t admit fault, even if you feel like you caused the accident. It’s not your job to decide who caused the crash, and you don’t have all the information yet. For all you know, the other driver was on their phone or driving on a suspended license.
3. Call the police using your local non-emergency number. Let the police gather evidence and be sure to answer any questions they ask once they arrive. Ask for their report number before you leave.
4. Take pictures. Use your phone to document any vehicle or property damage, along with the position of the cars that were involved before you move them, if possible. Also get some pictures of your surroundings (like relevant traffic signs) and any injuries that you sustained.
5. Trade information with the other driver. Get a full name, driver’s license number, insurance policy number, cell phone number, and license plate number.
6. Call your insurance company. Let your car insurance provider know what happened and give them the information you collected, including the police report number.

Remember, the fact that you feel like you caused an accident doesn’t mean you’re at fault. Wait to hear back from your insurance company. Then handle any insurance claims you might need to make.

If you’re at fault, your rates might go up for the next 3-5 years, but there’s no reason to panic. There are multiple ways to lower your car insurance costs, and you can always switch car insurance companies to find a better rate.

Car insurance follows the car, not the driver, in most cases. There are a few situations where car insurance follows the driver, though, such as when the car’s insurance limits are exceeded, in which case the driver’s coverage can be used to fill in the gaps. There’s also some disparity from company to company – your policy might provide less coverage for other drivers, or even no coverage at all.… read full answer

It’s advisable to review your insurance policy before letting someone else drive your car. It also helps to ask if the other driver has insurance before they get behind the wheel in your vehicle. And don’t forget to confirm coverage before you drive someone else’s car, too.

The driver’s insurance usually plays a (small) role

In most situations, the driver’s insurance plays a role regardless of whose car they are driving and who caused the accident. That is true regardless of whether a state has at-fault or no-fault laws because no-fault insurance only applies to medical payments. So fault still matters for property damage, at least, and the at-fault party needs to pay up.

However, the driver’s insurance can end up being negligible. If you are insured and you cause an accident in a friend's car, the primary coverage is their insurance, not yours. Instead, your car insurance is the secondary source of coverage. If your friend's coverage is exceeded by the collision, your insurance picks up the slack.

Uninsured drivers depend solely on the car's coverage

If you don’t have insurance and you drive your friend's car, your friend is on the hook for whatever damage you cause. But if the damage exceeds your friend’s insurance coverage, the other driver(s) could sue you and your friend, who also could sue you to cover his or her share!

This is assuming your friend gives you permission to drive. If you don't have permission to drive someone's car, insurance gets a little more complicated.

Permission matters - but it's hard to prove.

If a friend with no insurance takes your car without permission and crashes it, you're liable for the damage they cause. That’s because it’s very difficult to prove you didn't give your friend permission to use your car. And in situations where you let your uninsured friend use your car, your insurance needs to cover any damage they cause.

However, the responsibility can fall on the friend who takes your car if they have their own car insurance. If they cause damage in that situation, their insurance policy would be the primary coverage, while yours would be secondary – again, as long as you can prove that you did not give them permission to use your car. In that case, your insurance would only need to kick in to cover gaps in their insurance policy, or if their insurance maxed out before the damage was covered fully.

If it’s not a friend who takes your car, things are different. Should someone steal your car, you're generally not liable for the damage they cause to others' property. But you need your own insurance for repairs to your vehicle if they vandalize it.

Best practices

• Check your policy to see who and what is covered.
• Keep a copy of your car insurance information in your car, in case you're not there when an accident occurs.
• Make sure your friends have a valid driver's license and car insurance before you let them drive your vehicle.
• Add people you live with to your car insurance, as well as other people who use your car regularly.
• If you don’t own a car, you can get non-owner car insurance to make sure you’re covered when you drive someone else’s vehicle.

The Twelve states that require PIP insurance, also known as personal injury protection, are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. All 12 of these PIP states are “no-fault states.” PIP coverage is also available, but optional, in 8 additional states, plus Washington, D.C.… read full answer

PIP States

*Reflects this state’s minimum coverage required for medical payments, not PIP specifically. In New Hampshire, this minimum only applies to drivers who decide to purchase coverage.

PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. These expenses include ambulance fees, medical and surgical treatments, and prescriptions. PIP can also reimburse you for lost wages, home care expenses, and even funeral expenses.