Financial responsibility is when a driver, involved in an accident, has enough finances to pay for all the damages he might have caused during the accident. To ensure this, the state of Maine has made auto insurance mandatory. Every state writes its own set of rules and regulations to ensure that its citizens are safe. These rules are here to govern us and keep us safe. Any violation of the law will be dealt with harshly.
One such law that has to be followed is the mandatory auto insurance law. Maine does not have an auto insurance reporting system. Thus, you will have to report to the government when you get insurance coverage for a registered vehicle. You must also carry proof of insurance such as an insurance card. You must show it whenever an officer of the law asks for it.
There are many types of insurance coverage that one can get in the state of Maine. The main and the most important of these different insurance coverage policies would be the minimum liability. This is the most basic and the bare minimum coverage and is mandatory.
The minimum amount for the basic coverage is fifty thousand dollars for bodily injury per person in an accident and a hundred thousand dollars in total for bodily injury in an accident. It will also include property damage coverage for twenty five thousand dollars. Bodily Injury covers any medical costs that the victim of the accident might incur and lost wages, if any. Property damage will cover any costs for the repair and replacement of the victim’s car. It will also include uninsured motorist’s coverage and medical costs for an amount of one thousand dollars.
Uninsured motorist’s coverage is used in case the driver or motorist is involved in an accident with a driver who is not insured. This insurance coverage will help you cover costs for any damage caused by the uninsured motorist. Medical costs coverage will help you pay for the medical costs in case you have caused an accident. These are the mandatory policies. However, there are a few policies that are not mandatory but are very common.
One such common insurance policy would be Underinsured Motorist’s insurance coverage. Underinsured motorist’s policy comes handy when you are involved in an accident and the person found responsible is not insured for enough amounts to pay for all the damages caused by the accident. In such a scenario, this insurance policy will help you out a lot. Another common policy is taken out to insure oneself against physical damage.
There are two kinds of physical damage. They are comprehensive and collision policies. Collision policies are useful when a person has been in an accident and he is held responsible. Minimum liability will only cover the victim’s car and not the person responsible. Collision will cover the costs of repair and replacement of the car. Comprehensive damage will cover the costs of any damage that might occur due to natural agents such hail, snow or rain. It will also cover the damages caused by vandalism or theft.