Isn’t Insurance Mandatory in Maine?

Yes, in Maine, car insurance is mandatory – at least liability insurance. Maine DMV requires proof of insurance to register your car. So everyone’s insured, right? Not really.

An estimated 4% of Maine drivers are uninsured – and that’s the 2nd best rate in the country. The Insurance Research Council estimated that nearly 14% of U.S. drivers had no car insurance at all.

Repairing Your Car

If you are hit by an uninsured driver, you’ll have to rely on your own policy’s collision coverage to repair your vehicle. That’s assuming that you have collision coverage on your vehicle. If not, you’re on your own to repair or replace your vehicle.

But that’s only half the story: what about the people who buy state minimum liability limits? Maine’s minimum limits are only $50,000 per person, $100,000 per accident, and $25,000 property damage. Is your vehicle worth more than the $25,000 minimum limit? What if the at-fault driver hits more than one vehicle? The minimum-limits driver’s policy only pays a total of $25,000 for all damage.

Out of Staters and Uninsured Motorist Coverage

Mainers are a pretty honest bunch. 96% of them carry at least minimal liability insurance. But what about people “from away”? What’s that nickname on Maine’s license plates again? Oh yeah…

Most of our out-of-state visitors are from the northeast, right? Click on the map below to enlarge it, and you’ll see that of the 10 states within an easy day’s drive of Maine, 2 do not require drivers to buy insurance AT ALL. Six more require per person Bodily Injury limits of $20,000 or less.

In Maine, Uninsured Motorist Bodily Injury coverage limits almost always match your own liability limits. If you have less than $500,000 per person in bodily injury coverage, and your agent hasn’t recommended that you increase your limits, maybe it’s time to contact Noyes Hall & Allen Insurance at 207-799-5541. We represent several different insurance companies, and will help you find the best value for your individual situation.

“The 3 Rules of  Tens”

We’ve created these simple rules to help you consider when it’s less risky to remove collision coverage from your Maine auto insurance policy:

• TEN PERCENT – When collision coverage costs more than 10% of the book value of your vehicle plus your collision deductible.  For example, if the book value of your vehicle is $3,000 and your collision deductible is $500, consider removing collision coverage if it costs more than $350 per year for that vehicle.
• TEN YEARS – If your vehicle is more than 10 years old, it may no longer have enough value to warrant insuring.
• TEN TIMES – If you have 10 times your collision premium in a “rainy day fund”, you probably have enough of a cushion to put a sizable down payment on a replacement vehicle. In the example above, if your “rainy day fund” has at least $3500 in it, you might reasonably risk dropping collision coverage. If you don’t, you would probably need the insurance proceeds to help you make a down payment on another vehicle.

When Should You Keep Collision Coverage?

Shop Around

Insurance is a very competitive business, as evidenced by the volume of advertising in the media, mail and internet.  Every insurance company sets their own rates, and evaluates people differently. If you bought your policy directly from an insurance company (like Allstate, GEICO, State Farm, etc.), they only offer rates from their company. You’ll have to shop on your own.

Consult a Maine independent insurance agent who represents many companies; they will do the shopping for you. Many of them even have web sites where you can compare Maine  home and auto insurance quotes from multiple companies.

The Best Time to Shop for Insurance

Your home and car insurance rates depend greatly upon your insurance score. That score is based on most of the same information as your credit score. The higher your score, the lower your car and home insurance rates. To get the best price, shop for insurance when your score is good.

In general, your insurance score decreases when you:

• Make a late payment on any type of loan or bill.
• Use a higher percentage of your available credit
• Apply for a loan or credit card (applying for insurance does NOT affect your score).

The time to get the best insurance rates is BEFORE refinancing or buying a home or car, and when your credit card balances are low.

Package Your Policies

Most insurers offer a significant discount for buying more than one policy from them. If you insure your property and your autos, you can often save $200 or more per year. The same goes for boats, snowmobiles, motorcycles or other types of insurance. Some insurers can even combine your billing, to simplify your bill-paying process, and reduce the clutter in your life.

Don’t Let Your Insurance Lapse

Every month, thousands of people get insurance cancellation notices due to non-payment of premium. This happens for reasons ranging from inattention to bills, to being on vacation, to simply not having the money.

If your insurance lapses, the insurance company may choose not to reinstate your coverage – especially if you’re a frequent slow payer. Few insurance companies will accept you after you have had a lapse in coverage – and they charge higher premiums to account for the additional risk. An easy way to save $250 per year or more: don’t let your policy cancel in the first place.

Communicate with Your Agent – Get the Discounts You Deserve

Your agent knows more about insurance discounts and rules than you do. They know which companies offer auto insurance discounts for driving few miles, owning a hybrid car, or a child being on the honor roll; discounts on home insurance for installing a generator or an alarm system; and which ones have best rates for young drivers. Some companies even offer a discount if you have your policy delivered electronically instead of by mail.

Certain life events affect your insurance, like sending a child off to college, inheriting a vehicle or property, and a child getting their driver’s license. By talking regularly with your agent, you will get advice on the best rate and coverage for your current situation.

Adjust Your Coverage

Pay attention to your deductibles and coverage. When you first bought your home, you may not have had the cash reserves to pay a $1,000 bill for damage. Perhaps now you do. Increasing your deductible from $500 to $1,000 can save hundreds of dollars a year.

Likewise, your auto policy may still have collision coverage on a vehicle with a very low book value. Your agent can help you estimate the savings by removing unneeded coverages or increasing deductibles.

Pay Bills Automatically

Most insurers now allow you to pay your insurance  in monthly installments by Electronic Funds Transfer (EFT). Many charge very little – or nothing – for this option. Compared to the traditional “get a bill, write a check” method, this could save you $60 per year per policy. It also assures that your insurance continues without lapse, and improves your “on time payment” record, which helps your credit and insurance scores.

If you live in Southern Maine, and have questions about your insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

Can a Business Insure Against Bad Weather?

You bet! Let’s say your business plans an open house or a big one-day sale. You advertise heavily for 2 weeks before. You buy extra inventory, and add extra staff to take care of demand. But, a heavy snow storm keeps your potential customers at home, and you lose a lot of money. Or, you could buy a weather insurance policy to help recoup part of those costs, and cut your loss.

Can a Business Insure Against a Rainy Summer – or a Warm Winter?

What if your minor league baseball team suffers through a rainy summer? Or your tubing hill business encounters a warm, dry winter? Your organization might lose all sorts of same-day revenues: walk-up tickets; concessions; parking income, and more. A customized weather policy might pay a set amount if more than a certain number of game days have a specified amount of rain. A snow-area business could insure a mild winter in the same way, thereby stabilizing their income.

How Does Weather Insurance Work?

Like a good news article, weather insurance addresses the 4 W’s: What, When, Where and Who. As long as the event is measurable and the terms are specific, it can be insured. The price depends upon the terms. For example, if 6 inches of snow fall at a specific address in Portland, ME between 12:01 am and 11:50 pm on December 25 as measured by the National Weather Service, the insurer pays an agreed amount or percent of  a pre-determined period sales. Decrease the number of inches and you’ll pay more premium; shorten the sale period, you’ll pay less.

Fifteen Businesses That Might Buy Weather Insurance:

• Florists and Nurseries – for big pre-season open house or important Spring and Fall weekends.
• Candy Stores – The last few days before Valentines Day are key!
• Golf courses – Insure against late snowstorms that can put a season on hold.
• Baseball teams – Rainouts mean lost revenue.
• Farmers’ Markets – Ever notice that it seems to rain EVERY Thursday?
• Snowmobile dealers – Reduce the risk of overbuying inventory in a dry winter.
• Ski resorts – It’s tough to make snow when in 40 degree weather. Even out budgeted revenue projections by insuring against warm weather.
• Tour companies – It’s a short season already. One rainy month can cause disaster.
• Car washes – Although I always seem to wash my car right BEFORE it rains, very few of us actually wash them WHILE it’s raining. A summer of rainy weekends means business lost forever.
• Jewelers or Car Dealers - High-ticket items are perfect for attention-getting giveaway promotions.
• Hotels & Motels – To level out income fluctuations when reservations are canceled due to weather.
• Festivals and Events – They’re expensive to put on, and it’s often tough to have a successful “rain date”.
• Beach parking lots
• Film Production Companies

The possibilities are almost endless.

Where Can You Buy Business Weather Insurance?

Several online options offer “self-service” weather insurance. Being a Maine independent insurance agency, we recommend using the services of an agent or broker. It costs exactly the same.  A Maine  business insurance expert can help you determine your needs and work within your budget. They can also help you evaluate the market, to assure that the insurance company is reputable and financially secure. And, they can help you if you need to file a claim.

For more information about business weather insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

A Budget Friendly Workers Comp Payment Option

How Does Pay-As-You-Go Workers Comp Insurance Work?

It’s simple to understand, and easy to start up. Pay-As-You-Go:

• Integrates with payroll services or QuickBooks software.
• Allows you to keep your current payroll process and frequency. Simply send a file after every payroll run (weekly, bi-weekly, bi-monthly or monthly).
• Requires no premium deposit.
• Payments are automatically withdrawn by MEMIC.
• You can leave the pay-as-you-go plan any time during the policy term.
• Avoids year-end audit bills and surprises.

An Example of Loan Gap Coverage

Auto insurance companies pay the “actual cash value” (similar to “book value”) of your vehicle. Here’s an example: your dealer offers a sweet  ”no money down” incentive on a $32,000 vehicle. You total it 3 months later in an accident. The book value is $28,000, but you owe  the bank $31,000 on the loan. The bank comes looking for $3,000. Uh-oh.Luckily, you bought loan gap coverage, so the insurance company pays you the amount you owe – regardless of what the vehicle was worth. Not bad, huh?

Some Restrictions Apply

• Most insurers only sell loan – lease gap coverage in the first few months you own the vehicle.
• Coverage usually “drops off” after 36 months. By that time, hopefully your loan is no longer “upside down”.
• Your vehicle has to be a total loss.
• Of course, you have to buy collision coverage on the vehicle.
• Loan-lease gap coverage usually costs an additional 6-8% of the physical damage coverage on the vehicle.

Lee Allen remains an inspiration to those of us who knew her, and is fondly remembered by many clients, South Portland citizens, and insurance professionals throughout New England.

Here is a reprint of Lee’s obituary; a very brief list of the many acccomplishments of  a remarkable woman.

Smoke & Carbon Monoxide Detector

Not only could they save hundreds of lives each year, carbon monoxide detectors are required in Maine before you can sell or rent any residence. They are a inexpensive, easy to install, and a great way to protect those you love.

Data Backup Solution

All electronic and mechanical devices fail eventually. It’s not a matter of IF, but WHEN it will happen to your loved ones. With the popularity of digital photography and music, we risk losing irreplaceable memories and expensive entertainment media.  Why not give a data storage subscription or an external hard drive? A recent study of home computer users indicated that nearly 90% did not regularly back up their data. By giving an easy means to back up their information, you are helping spare someone from heartbreak, expense, and inconvenience. How thoughtful!

Personal Emergency Response System

The “I’ve fallen, and I can’t get up” TV ads became the unintentional source of humorous imitation several years ago. But there’s nothing funny about the thought of a loved one being unable to call for help when they need it most. If someone on your gift list lives alone, and has health or mobility challenges, they probably do worry about that scenario. Why not show them that you care about them by giving them a portable call button system?

Tree Pruning Gift Certificate

In our business, we see a lot of damage from fallen tree limbs. Another common question we get is “my neighbor’s tree fell on my property“, which can lead to community discord. Tree maintenance is not for the faint of heart, or the fragile of health. Proper pruning requires special tools and knowledge, good balance, strength and fearlessness. It’s best left to a professional. A gift certificate for a local tree pruning service can help preserve your loved one’s property, health, and neighborly relations.

Bicycle

When you were a kid, didn’t you often wish for a bike? More and more adults are rediscovering the joys of riding a bike. It’s healthy, saves money, is good for the environment, and – most of all – it’s fun! Who wouldn’t feel loved if you gave them a new bike?

The Noyes Hall & Allen team wishes you a safe and happy holiday season.

What Does General Liability Insurance Do?

GL insurance protects your business’ assets against lawsuits for:

• Bodily Injury caused by your actions, or that happen on your premises.
• Property Damage  that you cause to the property of others.
• Personal Injury, such as slander, libel or invasion of privacy.
• Products and Completed Operations Liability – in case your product or work harms someone or their property.

How Much Business Liability Insurance Do I Need?

What General Liability Insurance Does NOT Protect Against

Source: www.cdc.gov

Parents of young teens often dread the day they start driving. They worry about their safety, the responsibility for others in the car or on the road, and the expense. Between insurance, gas, and maybe  buying another car, it’s expensive to have a teen driver.

The cost to insure a teen driver varies greatly, depending upon driving record, vehicle types, use of the vehicle, and coverage level. Rates and rules vary by insurance company, too. Most Maine insurers only require you to add a driver when they get their license, not their learners’ permit.

If everyone’s driving record is clean, your teen has a vehicle at their disposal most or all of the time, and that vehicle has comprehensive and collision coverage, expect to pay $1,500 to $2,000 extra per year to add a teenager to your policy. If they buy their own vehicle and insurance, it can cost more than that.

Strategies to Reduce the Cost of Car Insurance for Your Teen.

1. Drop collision coverage on the vehicle.  Yearly savings: about $500 – $750.
   If your teen is the primary driver of a vehicle that is paid off, you can choose to self-insure collision damage for that vehicle.
   Downside:  If the vehicle is damaged in an accident, your insurance company will not pay to repair it.
   Surprising Fact: Teens may drive more carefully, knowing that if they’re in an accident, the vehicle may not be repaired or replaced.
2. Have fewer cars than drivers. Yearly savings: about $1,000 to $1,500.
   If your child does not have a vehicle available for everyday use, they are considered an “occasional operator”. Most insurers charge a lower rate for these drivers.
   Downside: You have to share a vehicle, which can be inconvenient.
   Surprising fact: Many families start with this approach, and move to option #1 as the teen gains driving experience.
3.  Get the Discounts You Deserve. Yearly savings: $50 to $100.
   Most insurers offer Maine auto insurance discounts for teens who are honor roll students or who complete a driver education program.
   Downside: none. Who doesn’t like saving money, or encouraging your teen to make good grades?
   Surprising Fact: Some insurers offer auto discounts for being a non-smoker, low-mileage driving, or displaying safe driving habits.

If you’re in the market for auto insurance in Greater Portland, get 5 free car insurance quotes online, or call Noyes Hall & Allen at 207-799-5541. If you live in another area, we recommend calling a local independent agent. Look for an agency that can offer you a choice from Maine’s best auto insurance companies, and provide professional local service.