The number of vehicles on the road is increasing everyday. The number of accidents is too. In such a scenario, the rule making auto insurance mandatory seems to be a godsend. However, auto insurance can be quite expensive. The state of Maine has fixed very high minimum liability.
Minimum liability in the state of Maine is fixed at fifty thousand dollars per person for bodily injury and a hundred thousand dollars in total for bodily injury. It is also mandatory to get property damage coverage for an amount of twenty five thousand dollars. Though it is not mandatory in many states, the state of Maine has made Uninsured Motorist’s coverage necessary. It is also compulsory to get coverage for medical costs for an amount equal to a thousand dollars.
These are just the minimum sums fixed. However, many people and the industry experts agree that adequate insurance coverage is of much larger sums. In such a scenario, the most important subject would be the different factors that affect insurance rates.
Factors affecting insurance rates can be classified into two different parts. The first part would be factors that you cannot change. These are the factors that cannot be modified but still play a large role in the rates you are charged. The first and foremost of these factors would be your age.
A driver below twenty five years of age is a very rash driver, according to statistics. Hence, these drivers are charged higher premiums. Women are statistically better drivers. Hence, they are charged much lower premiums when compared to men. Married people are a much lower risk and are charged lower premiums when compared to unmarried people. Drivers above the age of fifty and below sixty five are considered to be the safest of all drivers. They will be charged the lowest premiums.
The next category would be the factors you can change and do something about. The first of these factors would be your geographical location. The area you stay in will determine your rates. If you live in the centre of the city amidst a lot of traffic, the chances of your being involved in an accident are very high. You shall, therefore, be charged higher premiums. On the other hand, a person living in rural areas outside the city or in the suburbs will not face the same traffic as a person in the city. The chances of this person being involved in an accident are very low and his premiums will be lower.
A driver’s driving record shows what kind of a driver he is and hence will decide the insurance rates. A clean driving record will ensure low rates while a bad one with tickets and convictions will ensure high rates. The make and the value of the car will play a huge role. An expensive, imported sports car will cost a lot more and the rates of insurance will be higher. The chances of such a car being stolen will also be very high. The safety features in your car will also decide your insurance premiums as does the security and anti theft features.