Maine Insurance Rates 2024 Home and Auto Update

Maine insurance rates follow national and local trends and claim experience. Home and auto rates continue to rise as insurers and customers struggle with rising costs. Portland Maine area insurance buyers saw more than a 15% price increase in 2023. Industry experts expect this to continue in 2024. Still, Maine insurance rates remain among the lowest in the US.

Portland Maine area auto insurance rates jumped 14.4% on average in 2023. The average annual auto insurance policy in Cumberland County now costs $1475 per year.

According to a report by Insurify, personal auto prices were up 17% countrywide in the first half of 2023. The Bureau of Labor Statistics reported that auto insurance prices increased 20.3% in 2023. Maine rates increased even more: 28% statewide, according to Insurify. That was the 6th highest rate in the US.

Source: State of Auto Insurance in 2024 – ValuePenguin

Several factors put strong upward pressure on auto insurance rates everywhere in the US:

  • Used auto prices are at an all-time high.
  • New vehicles have much more technology, which makes parts more expensive to replace.
  • Auto body shops are backlogged, increasing auto rental costs
  • Auto parts and labor remain scarce, increasing prices
  • Medical care inflation is high.
Maine insurance rates - 2024 auto

Will auto insurance rates level off in 2024? We don’t see any signs that they will. Neither does the financial advice site Motley Fool.

The good news is that Maine auto insurance rates are the lowest in the US according to the Value Penguin “State of Auto Insurance 2024” report. They report that the average Mainer pays $92 per month for car insurance, 44% less than the national average.

Maine home insurance rate increases continue to outpace even large auto insurance increases. The average home insurance premium was 17.7% higher than a year ago. The end is not in sight yet, as US home insurers report record losses from weather events and historically high rebuilding costs.

Many of the same insurance inflationary factors described above affect home insurance. But reinsurance costs remain one of the biggest drivers of property insurance rates. Reinsurance is insurance for insurance companies. It protects them against catastrophic losses from natural disasters like wildfires, blizzards, ice storms, hurricanes and tornadoes. Many insurance companies continue to see their reinsurance costs jump 30-50% this year. Insurance companies pass on that cost to their customers.

Although this isn’t great news for Mainers, we’re better off than many areas of the country. Extreme weather has caused wildfires in the west and north, tornadoes and heat in the south and torrential rains elsewhere. Insurance companies have responded by canceling policies in Florida, Louisiana and California, and reducing their new policy offerings elsewhere.

Maine insurance rates - 2024 Homeowners

Most financial advisors recommend comparing to get the best insurance value. If you live in southern Maine, you can get up to 5 insurance quotes in 10 minutes from our website. Or contact a Noyes Hall & Allen agent in South Portland at 207-799-5541 for a free no-obligation custom review.

For more than 80 years, we’ve helped southern Mainers navigate the insurance market. While we don’t have any control over prices, we offer a choice of several insurance companies. That means we can help you find the best insurance value in any market.

We’re independent and committed to you.

Maine Insurance Rates 1Q 2023 Home and Auto Update

Maine insurance rates are following national trends. Home and auto rates are up as insurers try to catch up with rising claim costs and construction values. Portland Maine area insurance buyers saw almost a 10% price increase in the 1st quarter of 2023. Even so, Maine insurance rates remain among the lowest in the US.

Maine Insurance Rates – Auto – January to March 2023

Between January and March 2023, Portland Maine area auto insurance rates jumped 6.8% on average at renewal, up from 3.7% last September. The average annual auto insurance policy in Cumberland County costs $1341 per year.

Maine insurance rates for auto rose 6.8% in 1Q 2023.

Insurers reported higher than expected losses as people drove more after COVID reductions. Body shops and mechanical repair shops charged higher prices due to supply chain and labor shortages. Used auto prices spiked during COVID and settled above pre-pandemic levels. Finally, auto rentals are much more expensive, and needed longer due to body shop delays. All of these factors, along with medical cost increases, put strong upward pressure on auto insurance rates in 1Q 2023.

Maine Insurance Rates – Home – January to March 2023

Maine home insurance rates increased even faster than auto insurance. The average home insurance premium was 10.9% higher than a year ago. That’s up from 9.6% in September. And we haven’t seen the end yet.

Maine insurance rates for homeowners rose 10.9% in 1Q 2023.

Many of the same inflationary pressures pushed home prices higher. Building materials and labor costs spiked dramatically during COVID and haven’t settled completely back. It’s been difficult and expensive to find contractors. That delays repairs and increases claim costs.

But reinsurance costs are probably the biggest driver of property insurance rates. Reinsurance is insurance for insurance companies. It protects them against catastrophic losses from natural disasters like wildfires, blizzards, ice storms, hurricanes and tornadoes. Many insurance companies saw their reinsurance rates jump 30-50% this year. Insurance companies must pass on the cost of reinsurance to their customers.

Compare to Find the Best Value

Most financial advisors recommend comparing to get the best insurance value. If you live in southern Maine, you can get up to 5 insurance quotes in 10 minutes from our website. Or contact a Noyes Hall & Allen agent in South Portland at 207-799-5541 for a free no-obligation custom review. We offer a choice of several insurance companies. That means we can help you find the best insurance value.

We’re independent and committed to you.

Should I Buy Rental Car Insurance, or Does My Maine Policy Cover Me?

Should I buy rental car insurance? As a Maine insurance agency, that’s one of our most common auto insurance questions. The answer is a bit complicated. It depends on your risk tolerance, too.


Before we start, 2 important warnings:

  • This advice applies to Maine insurance policies only. Auto policies vary by state. Check with your insurance company about your own policy.
  • Auto rental contracts differ. Read yours carefully to find out what you’re responsible for.

Should I buy rental car insurance? In Maine, the answer is a bit complicated. It depends on your risk tolerance, too.

OK. Here are some things to consider when deciding whether or not to buy rental car insurance.

What Kind of Vehicle Are You Renting, and Why?

If you’re renting anything but a car, passenger van, SUV or pickup, buy the insurance from the rental car agency. Your Maine personal auto policy will not cover you properly. Likewise, if you’re renting a vehicle for business use, or in a business name, buy insurance from the rental car company.

Where Are You Renting?

U.S. auto policies only cover you in the U.S., its possessions and territories, and Canada. If you’re renting anywhere else, buy rental car insurance from the rental company.

What is Your Risk?

You face four types of risk when you rent a vehicle: liability, collision, injury and lost income for the rental company. Let’s look at the types of coverage that the car rental companies offer.  

Rental Car Insurance – Liability

If you are at fault in a crash, you’re liable for any damage or injury you cause. Rental car companies sell Liability Damage Waiver insurance. That means they take responsibility for your action, provided you were operating with in the terms of your rental contract.

Maine auto insurance policies extend your liability protection to rental cars. Therefore, it’s not usually necessary to purchase Liability Damage Waiver from the rental car agency. You usually already have coverage under your own insurance. An exception might be if you have purchased very low liability limits.

Rental Car Insurance – Collision

If you crash a rental car, you’re responsible for the cost to fix it. If it’s stolen while you rent it. You’re responsible to replace it. Car rental companies sell “Collision Damage Waivers” (CDW) to remove that risk. This waiver is not insurance. It’s simply a promise from the rental car agency that they won’t make pay to repair or replace it. CDW is also expensive: often $10 to $30 per day.

If you have collision and comprehensive coverage under your own Maine personal auto insurance, your policy extends to the rental car. Your regular deductibles apply. CDW from the rental car company usually has no deductible.

Some states also allow the rental car company to claim diminished value. That’s the difference between the car’s value before the crash and after it’s fixed. Maine auto insurance policies are not required to cover diminished value. This is a gap, and a risk that you should think about before declining CDW.

Injury

Rental car company insurance usually doesn’t cover injuries to people in your vehicle. Your Maine auto insurance policy provides medical payments coverage, which is likely a small amount. Regular medical insurance (if any) takes over from there. Otherwise, your medical bills for crash injuries must be paid out of pocket.

Lost Income to Rental Car Company

If you damage a rental car, the rental company has to pull it from the fleet until it’s repaired. That means they lose income. And that’s your responsibility.

Rental car companies sell Loss Damage Waivers (LDW). Similar to the CDW, these are not insurance. They transfer the risk of the lost income from you to the rental company. These cost about as much as Collision Damage Waivers: up to $3,000 per year if you annualize it!

Maine Law requires your auto insurer to cover verifiable loss of use for the rental company up to 30 days. That’s fine as long as the rental company doesn’t claim more than 30 days lost income. With supply chain issues and labor shortages, repairs can often take more than 30 days. You could still be responsible for loss of income beyond 30 days. This is a gap, and one you should consider before declining to purchase LDW.

Rental Car Insurance Tips

Check the Vehicle

Protect yourself by checking the car carefully for damage – with a rental company employee present – before you leave the lot and when you return it. Request that all prior damages be noted in writing. We’ve heard about car renters being charged for damage weeks after turning in vehicles. If you didn’t have an attendant check the vehicle when you returned it, there’s no way to prove your innocence.

Read the Contract

Rental contracts differ. Be sure you understand:

  • Your responsibilities
  • Who can drive the vehicle
  • Any restrictions or requirements (alcohol or drug use, types of roads driven, etc.)

Rental Car Insurance: Budget vs. Risk

Buying the waivers from the car rental company is the safest way to reduce your risk. But it’s expensive. Weigh the cost of those waivers against the additional risk you assume by not buying them.

We’re happy to answer these and other insurance questions for our clients.  Call a Noyes Hall & Allen agent in South Portland at 207-799-5541. We’re independent and committed to you.

Tips to safely drive in the snow

It’s that time of year again – the cold weather is settling in, and the snow is starting to fall. For many, this means bundling up and staying inside as much as possible. But for some, it means dusting off the snow shovel and hitting the road. If you’re someone who chooses to drive in the snow, be sure to follow these tips to stay safe!

1. Make sure your car is adequately prepared for winter weather. This includes checking the tires, windshield wipers, and headlights to ensure they are all working properly and clear of any snow or ice buildup.

2. Drive slowly and carefully, especially on hills and curves. This will help you maintain better control over your vehicle and give other drivers plenty of time and space to react to your presence on the road.

3. Keep a safe distance from other cars, and use your brakes sparingly. This will not only help you avoid accidents, but it will also help preserve your car’s brake pads if you need to come to a sudden stop.

4. If you get stuck in the snow, don’t panic – there are several steps you can take to get yourself out. First, clear any snow or ice from your wheels using a shovel or other tools if necessary. Next, try gently rocking your car back and forth to work the snow out from underneath your tires. And lastly, if these steps don’t work, consider calling a tow truck to help you get back on the road.

If you have questions about driving in the snow or how to protect yourself with auto insurance, call Noyes Hall & Allen Insurance today. We proudly serve the Portland, ME area.

Maine Insurance Rates September 2022 Home and Auto Update

Maine insurance rates remain among the lowest in the US. But home and auto rates are up as insurers struggle with rising claim costs and rising construction values. Portland Maine area insurance buyers saw increasing prices in the 3rd quarter of 2022.

Maine Auto Insurance Rates – June to September

Between June and September 2022, Portland Maine area auto insurance rates averaged a 3.7% increase at renewal, up from 1.7% last quarter. That’s still below the national average of 4.3%. 

Maine insurance rates for autos increased 3.7% in 3Q 2022.

About 62% of auto insurance buyers experienced an increase in premium. The other 38% saw premiums the same or less than before. Higher repair costs, delays finding replacement parts and increased driving speeds are all factors insurance companies site when they have to increase rates. Customers’ rates might decrease if accidents and violations “age off” or they choose to reduce or remove coverage on vehicles.

Maine Home Insurance Rates – June to September

Portland Maine home insurance renewal rates increased 9.6% from June to September. That’s rising faster than auto premiums, and an increase from last quarter’s 4.1% clip. That’s still less than the national average.

Maine insurance rates for homeowners rose 9.6% in 3Q 2022.

Home owners were more likely than auto insurance customers to see a rate increase: 91% saw a renewal increase. Only 9% saw rates stay the same or decrease. Higher building costs contributed to increased rates. So did longer rebuilding times due to labor shortages. The cost to rent temporary housing is very high now. That drives property insurance rates higher. So does the increasing cost of property reinsurance. That’s affected by disasters and other uncertainties.

Maine Insurance Rates – Find the Best Value

If you live in southern Maine, you can get up to 5 insurance quotes in 10 minutes from our website. Or contact a Noyes Hall & Allen agent in South Portland at 207-799-5541 for a free no-obligation custom review. We offer a choice of several insurance companies. That means we can help you find the best insurance value.

We’re independent and committed to you.

Maine Insurance Rates – Home and Auto Update

Maine insurance rates are some of the lowest in the US. But home and auto rates are up as insurers struggle with rising claim costs and rising construction values. Fortunately, Maine insurance buyers are seeing smaller rate increases than much of the country.

Maine Auto Insurance Rates

As of June 2022, Maine auto insurance rates are averaging a 1.7% increase at renewal. That’s considerably less than the national average of 4.3%. The Wall Street Journal recently reported increases as high as 20%.

The main factors driving auto insurance increases include:

  • More driving. Miles driven are returning to near pre-pandemic levels
  • More serious crashes. Traffic fatalities reached a 16-year high last year.
  • Higher repair costs. Parts and labor costs have both risen sharply due to staffing issues, shipping problems and supply chain glitches.
  • Higher used car prices. When insurance companies total a vehicle, they have to pay the current used car market price. Used car prices went through the roof recently.
  • Car rental issues. Auto body repair times are much longer. That means longer replacement rentals. Daily car rental costs have spiked, too.
Maine auto insurance rates are up 1.7% at renewal as of June 2022.

Maine Home Insurance Rates

Maine home insurance rates are rising faster than auto premiums, at a 4.1% clip. That’s still less than the 6% national average. And at an average premium of $1005 per year, Maine home insurance is a relative bargain.

Home insurance costs are affected by building values and claim costs.

  • Rebuilding costs. Building materials and labor costs spiked during the pandemic. Insurance companies have increased their “inflation guard” factors to provide increased coverage on renewals.
  • Longer repair times. Contractors are hard to find, too, which increases additional living expenses.
  • Unusual weather. Natural disasters caused $116 Billion in insured claims in 2021. Maine sees far less than the rest of the US. That’s one reason why our rates are lower. But insurers are feeling less certain about predicting future losses.
Maine home insurance rates average a 4.1% increase in June 2022

Individual Home and Auto Insurance Rates Vary

Every insurance company files their rating plan with the Maine Bureau of Insurance. That plan includes individual rating factors such as driving record, insurance claim history, property location and personal insurance scores.

Maine Insurance Rates – Find the Best Value

If you live in southern Maine, you can get up to 5 insurance quotes in 10 minutes from our website. Or contact a Noyes Hall & Allen agent in South Portland at 207-799-5541 for a free no-obligation custom review. We offer a choice of several insurance companies. That means we can help you find the best insurance value.

We’re independent and committed to you.

Does Car Insurance Include Roadside Assistance?

Does car insurance include roadside assistance in Maine? It’s a common question.

Off the shelf auto insurance policies do not include roadside assistance. But many insurance companies offer it as an option. Others offer towing coverage. Both are less expensive that auto club options.

roadside assistance is not automatic coverage in most auto insurance policies

Are Roadside Assistance and Towing Insurance the Same?

Insurance companies have offered towing coverage for years. Roadside assistance is newer. They’re not exactly the same thing.

Roadside assistance and towing cover many of the same things. Examples are: flat tire repair; jump starting; fuel delivery; and towing, of course. The difference is that towing coverage reimburses you after the service call. You have to arrange your own service provide. Coverage is limited to a flat dollar amount, often $75.

Roadside assistance is a service. You don’t usually pay at the scene. If you need assistance, you call a special number and provide your policy info. Some insurers have their own app that you can use to summon help. They dispatch a truck to come and help you. Some roadside plans have a dollar limit per disablement. Most use a towing distance limit – often 25 miles.

How Much Does Roadside Assistance Cost on an Auto Insurance Policy?

Each insurance company sets its own rates. In Maine, expect to pay between $10 and $20 per vehicle per year for roadside assistance. Towing coverage usually costs less than $10 per vehicle for a $75 limit.

Do You Need Roadside Assistance or Towing Coverage if You Have AAA or Onstar?

Most people choose not to have both. They either buy roadside assistance on their auto insurance, or another road service.

Some clients choose to buy towing insurance even though they have another service. For example, some subscription plans charge extra to tow more than 25 miles. If that happens, they pay the excess and submit the bill to their insurance under towing coverage.

Answers to Maine Auto Insurance Questions

Live in southern Maine? Have questions about roadside assistance or auto insurance? Call a Noyes Hall & Allen agent in South Portland at 207-799-5541. We offer a choice of many of Maine’s most popular insurance companies. Many of them offer optional roadside assistance coverage. We’ll help you find a solution that fits your needs and budget. We’re independent and committed to you.

Replacing a Car? What Your Insurance Agent Needs

Replacing a car with a new one is an easy insurance transaction. Here’s the info your agent needs to do it:

3 Things Your Agent Needs:

  1. VIN – The Vehicle ID Number for the new vehicle. It’s 17 digits long. That’s easy to transpose. And lots of letters and numbers sound alike, so they’re easy to get wrong. A photo of the VIN simplifies the process and reduces mistakes. Text it to your agent, or email it to them.
  2. Finance Info – Did you buy the vehicle outright? Congratulations! Your agent doesn’t need anything. But if you lease it or take out a loan, they do. The name and address of the finance company will be on your title application. Email or text a photo to your agent. Or, you can call with the info.
  3. Aftermarket Safety or Security Options – The VIN contains details about what’s on your vehicle when it comes off the assembly line. If you purchased add-ons at the dealership, let your agent know. That might include subscription items like OnStar. Or an after-market alarm system.
replacing a car is an easy insurance transaction

Replacing a Car – What to Expect Next

Once your agent has this info, they can:

  • email or text an insurance card to you, so you can register your vehicle
  • email proof of insurance to your dealer.
  • update your policy
  • let you know the insurance premium difference.

Be sure to let your agent know if you’re holding on to your old vehicle, so they can keep the insurance active.

Buying a car outside your agent’s business hours?

A new vehicle is almost always automatically insured until you can notify the insurance company. Whatever you do, don’t let the dealer talk you into buying insurance in a hurry.

Do you live in Southern Maine and have questions about auto insurance? Contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. We’re independent and committed to you.

Reduced Driving and Insurance Rates

Reduced driving and insurance rates have been hot topics during COVID

During the COVID-19 pandemic, reduced driving and insurance costs have been a hot topic. Many Mainers are driving less. Why haven’t their car insurance rates dropped? It’s more complicated than you might think. But there are ways to keep your car insurance costs in check.

Why Maine Insurance Rates Haven’t Dropped

Insurance is Slow and Steady

We count on insurance companies to be dependable and stable. We need to know they’ll be able to pay claims in the future. So it’s no surprise that insurance companies aren’t built to react to fast trends. Especially those that may not last.

We want stable insurance prices. The whole purpose of insurance is to avoid a large loss by paying a small cost (premium). Some years, disasters cause insurance companies lose a lot of money. Other times, claims are low. Insurers bank our premiums in those times to pay for the bad ones.

Insurers Have No Experience with COVID

In insurance, data rules. Insurance companies charge premiums based on expected claims. They hire smart math nerds who use decades of data to find the proper rates. Consumers want the lowest possible price. Regulators and stakeholders want rates high enough to make a profit pay future claims.

Historical data didn’t help much during COVID. Americans drove less as people telecommuted and stayed close to home. Nothing was normal.

But overall mileage doesn’t tell the whole story. Essential workers continued to commute as usual (thank you, essential workers!). Law enforcement and highway construction crews noticed increased speeds due to less traffic. That led to more serious crashes and injuries.

COVID Auto Insurance Rebates in Maine

Remember how quiet the roads were in the early days of the pandemic? It was a very uncertain time for the economy. Many people were out of work, and small businesses feared that they’d have to close.

In response, most American auto insurance companies refunded some premium to policyholders in 2020. This was an unprecedented response by insurance companies. By law, rebating of premiums is illegal. But state insurance departments approved exceptions.

But it wasn’t easy. Insurance companies’ billing systems weren’t programmed to rebate money to customers. It was difficult for many of them to calculate and distribute the refunds.

Although the insurance industry returned $10 billion to US consumers, individual refunds were quite small. The public hardly noticed them. Between the underwhelming public response and the cost of the workarounds, insurers didn’t think the rebates were that valuable. We don’t expect rebates again anytime soon.

Reduce Your Auto Insurance Costs When Driving Less

OK, so car insurance companies aren’t slashing rates in response to COVID. And they’re probably not going to refund premium this year. You still have control over your own policy. Here are some adjustments you can make.

Be Sure You’re Properly Rated

Does your policy reflect your actual driving? If you’re working from home, retired or unemployed, maybe not. Check the drivers listed on your policy. Are any of them no longer at home? Do they now have their own insurance?

Check Your Collision Coverage

Do you have an older car that isn’t worth much? Is it rarely driven? Do you have a vehicle that’s completely off the road? Consider removing collision coverage, at least during COVID. Just remember to add it back if the situation changes.

Prove You’re Driving Less

Even “slow and steady” insurance is changing with the times. Several now offer “usage based insurance”. Commonly advertised brands include Progressive Snapshot, Travelers Intellidrive and Drivewise from Allstate.

With usage-based insurance, you allow the insurance company to customize your rate in exchange for an up-front discount. You’ll need a smartphone and the insurance company’s app. Your final price varies depending on how, how much and when you drive. It can be lower or higher than the initial discount.

Safeco Insurance offers a twist: a “low mileage discount” that doesn’t use a real-time monitor. You simply verify your previous year’s mileage to continue to earn their discount. Safeco also has a usage-based mobile app option.

Want to know more about these options? Ask a Noyes Hall & Allen agent.

Shop Your Auto Insurance

If those cost-saving measures don’t work for you, you can always compare rates with other insurance companies. Live in Greater Portland Maine? You can get up to 5 Maine auto insurance quotes in 10 minutes on our website. Or call a Noyes Hall & Allen agent in South Portland for quotes at 207-799-5541.

We offer the choice of more than a dozen insurers, so we can search the market for the best value. We’re independent and committed to you.

5 Reasons NOT to Buy Maine Car Insurance at a Dealer

Some car dealers offer Maine car insurance at the time of purchase. This is good for dealers because it increases their closing rate and their profits.

Is it good for you? Maybe not.

If you already have insurance, making a snap decision to change when buying a new car at a dealership can be a bad choice. Here’s why.

Buying Maine car insurance in a rush at a dealership can be a bad idea

What’s the Rush?

The salesperson may create a sense of urgency about insurance. However, there’s no rush. If you have an insurance policy with collision coverage on at least one vehicle, your policy probably automatically covers the new one until you can contact your insurance company or agent. Dealers know this; it’s been that way for decades.

Why Add Pressure?

Car buying is already a stress. Why add more? Most of us don’t make our best decisions under pressure. Moreover, you’re making a big financial commitment and choosing between expensive options on the fly. Don’t let the salesperson force you to make unnecessary snap decisions. That includes insurance.

A “Good Deal” May Not Be

First, many new cars have high-end safety features that help reduce insurance costs. Therefore, some don’t cost any more to insure than the ones they replace. So, if you get a quote at the dealer, and were pleased to see it wasn’t as much as you expected, it may still be more than your current insurance company would charge.

You Can Mess Up Your Other Insurance

Your current policy might have benefits you’ll lose. For instance, a home/auto bundle discount. Or a multi-vehicle discount. Or accident forgiveness, or some other perk. You could lose those if you make a snap decision to insure your new vehicle at the dealer. In conclusion, you might pay more – not less.

You Can End Up With Worse Insurance

First of all, most people don’t know what insurance they have. For example, the liability limits and deductibles on their policy. If they make snap insurance decisions at a dealership, they can end up with inadequate coverage.

In conclusion, if the insurance quote from your dealer is really a better value, that won’t change in a few days. Take your time. Make your insurance decisions on your schedule – not the salesperson’s. Above all, whether you switch insurance or not, you’ll have peace of mind that you made the right choice after a thoughtful decision.

Need An Insurance Quote for a New Car?

Do you live in Southern Maine? Want a quote to insure your new car? Call a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. Or, get up to 5 Maine auto insurance quotes in 10 minutes on our website. We offer a choice of Maine’s top insurance companies. We’re independent and committed to you.