When you’re dealing with auto insurance, what you don’t know can cost you a fortune. Unfortunately, insurance companies and agents are not always willing to tell you these things, because your ignorance can make them more money.
The real key to Maine’s low auto insurance rates is the state’s laws. The major law that keeps auto insurance costs low in Maine is one limiting liability, or the amount that motorists and insurance companies have to pay out in case of an accident. Maine is actually one of the few states that impose serious limits on accident liability.
What’s going on here? Why are country folk paying higher car insurance rates? The answer comes in the way that insurance rates are set. Some of the criteria that insurers use to calculate rates are stacked against rural residents.
In most cases, uninsured motorist coverage covers the cost of bodily injuries; that is, medical coverage for those injured in a car accident. In states like Michigan that have so-called no fault car insurance, every driver that is involved in a wreck is considered liable for damages. In most states, only the individual responsible for the accident is liable for damages.