Should I Pay a Small Insurance Claim Myself, or Report It?

Name: Noyes Hall & Allen Insurance
Address: 170 Ocean St, South Portland, ME, 04106
Telephone: 207-799-5541

Posted on April 25, 2017March 27, 2019 by Bob O'Brien

You clip your mirror on the garage door frame. Your daughter hits a golf ball through your neighbor’s window. Your shower drain leaks, staining your kitchen ceiling. Should I file an insurance claim, or just pay it myself? How much will my insurance rates go up if I file a claim? Clients often ask us questions like this.

The answer may depend on your individual financial circumstances, insurance policy and who else was involved.

Definitely File an Insurance Claim If:

There’s even a CHANCE anyone was injured. Even if someone says at the scene that they’re “fine”, they can always claim that the injury wasn’t apparent until later. Sometimes, that’s the truth; other times it’s bogus. Insurance adjusters are experienced at weeding out legitimate claims from fraudulent ones. If you delay reporting the claim to your insurance company, you may jeopardize their ability to adjust the claim. They can refuse to honor your claim or defend you in that case.
The other party seems antagonistic or dishonest. Difficult people are hard to satisfy; and not everyone is as honest as you are. You may think that their damage or injury is minor, and offer to pay it, only to have them increase their demands. If you promise to pay something, and then turn it over to your insurer, you’ve taken away their ability to settle properly. You may find yourself on your own to pay.

Think BEFORE Reporting an Insurance Claim

Once you report a claim, it’s on your record – even if it ends up being uncovered, below your deductible, or you end up paying it yourself. And insurers consider claims when pricing your policy. Some insurance companies even charge you more for claims when nothing was paid.

Wait…I get charged extra for saving the insurance company money by paying for my own damage? Is that fair? It sure seems wrong at first thought. Insurance companies might argue you’re more likely to have a claim if you’ve already had one. And the next one might not be so small. They need to collect more premium with the expectation of that future claim. You might say “what’s the point of having insurance in the first place?”

We’re not defending the insurance companies that charge for “no payment” claims. But, as independent insurance agents, we can advise you which companies DO charge, and how reporting a claim might affect you.

Here’s the thing: if you talk to an insurance company about a claim, they have a record of it. And, it may be used against you. If you buy your insurance directly from an insurance company (instead of an agent), you’re talking to an insurance company employee EVERY TIME you call, email or go onto their web site.

How Much Will My Insurance Go Up After a Claim?

It really depends. An accident surcharge is a percentage of your premium. So, if you’re paying higher rates (because of expensive vehicles, young drivers, prior accidents or violations, etc.), your increase will be bigger than someone with a lower rate. Every insurance company charges a different percentage, and for differing terms. We’ve seen increases as small as 5% for 3 years, and as high as 50% for 5 years. Unfortunately, insurance companies don’t publish accident surcharge info, which would allow us to quote “what if” scenarios. But, we have enough experience to know which companies surcharge the most.

So, Do I Pay a Small Claim Myself, or Not?

That’s an individual decision, based upon your financial situation, risk tolerance and insurance status. You and your neighbor may make very different decisions. You might even make a different decision next year than this year. Your agent can provide as much information as they’re able, but the decision is ultimately yours.

If I’m Not Going to Put in a Small Insurance Claim, Should I Increase my Deductible?

Now you’re thinking. Higher deductibles even reduce the temptation to file a smaller claim. You also save money by choosing higher deductibles. Some companies offer larger savings than others. Your insurance agent can quote “what if” scenarios for you. Obviously, you don’t want to choose a higher deductible than you’re comfortable paying “out of pocket”. But, deductibles can be a useful risk financing tool.

Live in Southern Maine and have questions about your auto or home insurance? Call a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541, or click the chat button below. We represent many different insurers. We’re independent and committed to you.

What is Accident Forgiveness on an Auto Insurance Policy?

Posted on April 21, 2017March 27, 2019 by Bob O'Brien

You’ve probably seen the insurance company ads on TV. “We won’t raise your rates after an accident”. Insurance companies call that “accident forgiveness”. And it’s REALLY important for drivers who rarely have accidents.

What Is Accident Forgiveness?

Auto insurance companies raise your rates for 3 – 5 years after an accident. Some insurers waive the extra charge if it’s your first accident with them, and you’ve insured with them for 3 or 5 years. Some only waive the rate hike if your driving record is squeaky clean. This rewards good drivers who have one bad moment. It’s also intended to encourage your loyalty to the insurance company.

How Much Does An Accident Raise My Auto Insurance Rates?

An auto insurance accident surcharge is a factor, not a flat dollar amount. Each insurance company decides how much and how long to surcharge. So, the cost varies by company and by client. We’ve seen increases from $100 to $600. The average is about $225 per year for 3 to 5 years.

Do I Lose Accident Forgiveness if I Switch Insurance Companies?

Yes, but you might be able to buy it back. Our South Portland Maine insurance agency represents 9 major auto insurance companies. Of those:

TWO allow you to “earn” Accident Forgiveness by not having claims. They don’t charge more for that benefit, but it takes 3 – 5 years to qualify.
FOUR sell optional Accident Forgiveness to new customers. That waives your first accident even if you’ve only been insured by that company a short time.
THREE don’t even offer Accident Forgiveness; they raise your rates after an at-fault accident.

How Much Does Accident Forgiveness Cost?

Of the four insurers we represent that sell Accident Forgiveness, only one sells it a la carte. The other 3 include it in a bundle of optional coverage. Either way, it costs between $80 and $120 per year to add Accident Forgiveness to a multi-vehicle policy. That’s about half of the $225 average rate hike after an accident.

The Secret That Makes Accident Forgiveness So Valuable

Many people don’t know this: most Maine auto insurance companies surcharge for not-at-fault accidents in addition to at-fault ones. This is a recent development, and it baffles people.

Why does the insurance company raise your rates when it wasn’t your fault? Insurers have convinced the Maine Bureau of Insurance that folks who’ve had any accidents – even not at fault – are more likely to have another. We can’t defend the data, and we don’t make the rules. But we can advise you how to play the game.

The “not-at-fault” accident charge can be almost the same as an at-fault accident. We’ve seen increases from $125 to $300. The average is about $225.

Accident Forgiveness, is a “get-out-of-jail-free” card that allows you to avoid the rate hike. That makes Accident Forgiveness even more valuable. Interesting side note: the insurance companies that don’t offer Accident Forgiveness are the same ones that don’t charge for not-at-fault accidents. They also tend to have smaller rate hikes after an at-fault accident. All are smaller, regional insurance companies.

If you live in Southern Maine and have questions about your auto insurance, call Noyes Hall & Allen at 207-799-5541 or click the chat button below. We’re independent and committed to you.

What are the Highest Rated Insurance Companies in Maine?

Posted on March 21, 2017March 27, 2019 by admin

If we recommend an insurance company you haven’t heard of, it’s natural to ask how good they are. Noyes Hall & Allen represents many insurance companies. Some are more well-known than others.

Because our companies sell through independent agencies, they advertise very little. By contrast, Geico, Allstate and State Farm advertise nationally to create brand awareness. Geico alone spends $1 BILLION on advertising – about 1 out of every 6 insurance advertising dollars in the U.S.

Good rates are important, but that’s only one reason for choosing an insurance company. Will they pay your claims? Are they easy to work with? At Noyes Hall & Allen, we’ve curated a group of insurance companies that we can stand behind. We work closely with them on behalf of our clients.

How to Choose a Good Insurance Company

There are three important considerations when you evaluate a potential insurer:

Financial solvency – Can the insurance company can pay claims, even in a disaster? Fortunately, A.M. Best studies insurance companies and rates each one for you. Noyes Hall & Allen only chooses insurers rated “A-” (Excellent) or better.
Customer Satisfaction – Feedback from other customers is helpful when evaluating a new insurer. Any company can have complaints; but those with repeatedly good reviews are a better bet to provide good service to you. The J.D. Power national claims satisfaction survey compiles consumer claim feedback every year. But they focus on big national insurers. That excludes many regional insurance companies, which are so important in the Maine market.The Maine Bureau of Insurance indexes home and auto complaints by insurer. It includes Maine’s most important insurance companies. The drawback: the Bureau doesn’t get many complaints each year. That small sample can skew results. The Bureau weighs the ratio of complaints against each insurer to that company’s volume. This weighting levels the playing field. An insurer with an index below 1.00 is “better than average”. Anything above 1.00 is “worse than average”. We’ve included a chart with a recap of those scores below.
Fit with Your Situation – If you insure your beach house with an insurance company that has great financials and terrific reviews, but that company doesn’t like property close to the coast, it’s not going to end well. Some insurers specialize. Others are generalists. Some are comfortable insuring rental properties, or snowmobiles. Others focus on high risk drivers.

Complaint Index – 2016 – Maine Home and Auto Insurance

We compiled this table from data published by the Maine Bureau of Insurance. It shows the 2 year average of home and auto complaint indexes for the top 25 homeowners and auto insurance companies in Maine (by volume). We assigned a “green light” to the companies with ratings in the top 33%, yellow to the middle 33%, and red to the bottom third. Remember, customer satisfaction is only one way to evaluate an insurance company. The companies with the highest satisfaction may not write the kind of insurance you need.

source: Maine Bureau of Insurance. Compiled by Noyes Hall & Allen Insurance

How to Get Quotes from Many Insurance Companies at Once

Noyes Hall & Allen has access to the companies shaded in blue. That’s 11 out of 25, covering more than 50% of the volume in this list. The insurance companies we represent have a complaint index of 0.91 – much lower than the 1.00 average. By the way, insurance agencies have online reviews, too. We’re proud to show the reviews that our clients have left for our agency.

When you contact a Noyes Hall & Allen agent, you’re checking 11 companies at once, backed by our knowledge of where each company excels. Your agent can customize advice to your situation, proposing a solution built just for you.

That’s what we mean we we say we’re “Independent and Committed to You”. Request a Maine insurance quote today, or call us at 207-799-5541.

Can My Insurance Company Charge Me For a Not at Fault Accident?

Posted on March 15, 2017March 27, 2019 by admin

You may have heard stories of people whose auto insurance went up after an accident that they say wasn’t their fault. In some cases, the other driver’s insurance company even paid for the damage to their car. Do insurance companies really do that? Is that legal? Is it ethical?

Is It Legal for My Insurance Company to Charge Me When the Accident Wasn’t My Fault?

The Maine Bureau of Insurance does allow auto insurance companies to charge for not-at-fault accidents. How does that happen? Insurance companies must file rate requests with the Bureau of Insurance. The Bureau requires insurers to show that the proposed rates are adequate, not excessive, and not unfairly discriminatory. They must prove that with data. Some insurers have apparently successfully proven to the Bureau that people who’ve been involved in accidents – even if they’re not at fault – are a higher risk than those who haven’t. Insurance companies are very protective of their proprietary data. We haven’t seen any of that documentation.

Does Every Maine Auto Insurance Company Charge for Not-At-Fault Accidents?

No. Of the nine major auto insurance companies in our agency, 6 charge for not-at-fault accidents; 3 do not. Just a few years ago, none of the insurance companies we represent did. It’s hard to say whether the three that don’t charge will start to do that for competitive reasons. But, for now, those 3 insurers may have a public relations advantage with consumers who feel that it’s unfair to surcharge for a not-at-fault accident.

Why Would I Do Business With an Auto Insurance Company That Charges Me for a Not-At-Fault Accident?

Even though your insurance company surcharges you for an not-at-fault accident, they may still have the best rates. How could that happen?

Let’s assume that your insurance company’s experience shows that people who’ve never had any kind of accident – at-fault or not – are much lower risks: 15% less likely to have a claim. Your insurance company wants to attract as many of these drivers as they can. So they file special rates for these folks 15% less than any other insurer, and expect to still make a profit. At the same time, they file a 15% surcharge for not-at-fault accidents. Even if you get a surcharge, you’re still paying no more than you would with any other insurer.

Is It Fair to Charge for Not-at-Fault Accidents?

We understand your outrage. You’re paying more for insurance just because you were in the wrong place at the wrong time. It’s bad enough that you were inconvenienced or hurt because of the crash. Surcharging your insurance policy afterwards adds insult to injury.

Some states, including California and Oklahoma, have refused to allow the surcharges. But the Maine Bureau of Insurance thinks it’s fair for insurers to charge for not-at-fault accidents. Many other insurance regulators do, too.

Are You Paying More Than You Should For Maine Auto Insurance?

Here’s one way to find out. If you live in Southern Maine, contact a Noyes Hall & Allen Insurance agent at 207-799-5541 for a no-obligation review. We will review your situation and present you with the best fit we have available. If your current insurance is the best deal, we’ll let you know. If we have something better, we can work with you to change if you want to.

Not ready to speak to a human yet? You can compare up to 6 insurance companies on our web site. If one of them looks good, you can let us know.

What’s Causing U.S. Auto Insurance Rates to Go Up?

Posted on March 7, 2017March 27, 2019 by admin

U.S. auto insurance rates increased 7.5% between January 2016 and January 2017. That’s after more than a 5% increase in 2006. What’s driving the increasing cost of car insurance? More accidents? More highway deaths? We hear about 4 major factors combining to make the cost of car insurance go up even faster than overall inflation.

Medical and Labor Costs

Insurance pays for two big expenses: auto repairs and medical expenses. Medical expense prices increased about 32% in the 8 years between 2005 and 2013. Auto repair labor costs have increased too. Also, it costs more to fix a newer car than an older one (see #3 below).

More Crowded Roads

Even if you aren’t driving more miles, your neighbors are. It’s not your imagination: the roads are more crowded. More cars on the road means an increased chance of a crash. Americans drove more that 3 trillion miles in 2015, a 3.5% increase from 2014. That’s the largest annual increase in 25 years. Why? Economists say an improving economy and low gas prices were the main reasons.

Lots of Newer, Hi-Tech Vehicles

Car makers are selling lots of vehicles. And many of them are computers on wheels. Americans bought 17.5 million new vehicles in 2015, a 5.7% increase from 2014. Newer cars cost more to fix than older ones. They also have advanced tech features. Rear bumper cameras are very common now. Front bumper radar and other safety features are available on many models. Even a side mirror likely has “blind spot warning” hardware. If you do get in an crash, chances are the insurance company will have to pay more to fix the other car than it would have a few years ago.

Distracted Driving

You may be the same safe driver you’ve always been. Unfortunately, many others on the road aren’t paying as much attention. A 2013 AAA study found that 2 out of 3 drivers reported using a mobile phone while driving. More than 25% admitted sending a text or email while behind the wheel. The National Safety Council estimates 26% of all car crashes involve cell phone use. Distracted driving increases the risk of a crash as much as driving drunk.

Should You Shop Your Maine Car Insurance?

Maybe. Every insurance company files their own rates based upon their experience and appetite. If your insurer had lots of claims in another part of the country, it could be affecting your rates. If you live in Southern Maine, contact a Noyes Hall & Allen Insurance agent for a review at 207-799-5541. We represent many different insurers, so you can compare with one phone call.

Not ready to talk to a human yet? You can still compare prices from up to 6 Maine auto insurance companies online on our web site.

When you chat with us, we can provide personalized, custom, professional advice. As a Trusted Choice insurance agent, we are independent and committed to you.

When Should a Maine Contractor Insure Vehicles Commercially?

Posted on February 2, 2017March 27, 2019 by admin

Many Maine contractors drive personal vehicles for business every day. Cleaning contractors drive their own cars to jobs from Cape Elizabeth to Cumberland. Food delivery workers pop a magnetic sign on the roof and zip through Portland streets. Uber drivers shuttle people to and from the Old Port in their SUVs. Landscapers haul mowers on trailers from Scarborough to Yarmouth. Carpenters and handymen load tool boxes and ladder racks for Munjoy Hill rehab projects. In winter, contractors from Kittery to Fort Kent pick up plow jobs to pay the bills.

Does a Personal Policy Cover Contractor’s Business Use of a Vehicle?

Maybe not. Many insurance companies exclude delivery or transporting commercial goods. If you’re in a crash hauling your tools or delivering a pizza, you could find yourself with no coverage. Almost every personal policy excludes carrying passengers for a fee (Uber or Lyft).

If My Truck Has Lettering on the Side, Does it Require Commercial Insurance?

Lettering can be a “tipping point” when defining a business vehicle. Is your truck lettered? Talk to your Maine contractor’s insurance agent to see if you need to switch to a business policy. Avoid a surprise at the absolute worst time – after an accident.

What if I’m in an Accident With My Contracting Truck on My Personal Insurance Policy?

You may have no coverage (see above). Even if your policy doesn’t exclude your claim, your personal insurer won’t be happy. After paying, they could cancel your family’s insurance. Or, they could force you to insure your truck on a business policy. At the very least, they would surcharge your policy for the claim.

What’s the Advantage of Business Auto Insurance?

Compared to a personal auto policy, a commercial vehicle policy allows you to:

Get coverage for business use of the vehicle – which is the whole purpose of having insurance at all.
Buy higher liability limits – to meet job requirements, and better protect your business assets and reputation.
Have Loading and Unloading coverage – If you yank the wires from a customer’s house while pulling your ladder off your rack, that’s not covered by your business liability insurance. Business Auto policies cover it.
Purchase higher rental limits, so you can rent a vehicle comparable to the one that’s damaged. No one wants to show up for a carpentry job in a subcompact car.
Include non-owned auto coverage – protects your business if someone crashes while picking up a part or a tool for you with their own vehicle.
Separate your personal life from your business. You don’t want to explain to your spouse why their insurance was canceled, or the price increased so much.
Insure larger vehicles – most personal policies don’t insure anything bigger than a 3/4 ton pickup.
Include attached equipment – like tool boxes, ladder racks or signage.

How Much Does Commercial Vehicle Insurance Cost in Maine?

It varies of course, depending on the vehicle and use. Plan to spend about $100 a month for a contractor’s pickup truck with collision coverage and $1 million of liability coverage. Prices can decrease if you have more vehicles, or increase if you have bigger trucks.

Would your Maine auto insurance pay if you were in an accident at work? Have questions about Maine contractors insurance? Contact Noyes Hall & Allen in South Portland at 207-799-5541, or click “let’s talk” below. We’ve helped contractors to stay on the job and out of hot water since 1933. Because we represent many insurance companies, we’re independent and committed to you.

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Avoid The Biggest Home or Auto Insurance Mistake

Posted on January 19, 2017 by admin

Auto and home insurance are necessary for most Mainers. That’s one reason why the Maine Bureau of Insurance enforces consumer protection laws. A Maine insurance company can only cancel your auto or home insurance for a few reasons. The most common is also the most avoidable – and the most damaging.

THE BIGGEST INSURANCE MISTAKE YOU CAN MAKE:

Allow your policy to cancel for non-payment of premium.

Once your policy cancels, you have almost no legal protection. The insurance company may refuse to take you back for any reason at all. End of story.

The moment your policy cancels, you lose ALL leverage with the insurance company. They hold all the cards. If you want to go back to them, they will pull out their magnifying glass to review your:

claim history (even small claims hurt);
payment history (are you often late?);
other business with the insurance company (if this was your only policy with them, they may not take you back);
credit score (if your score is a lot lower than it was when they insured you, they may decline);
the age, location, use and condition of your home (for homeowners insurance).

With a Lapsed Insurance Policy, You Have Few Options

Preferred insurers will consider you only if you’ve had insurance (no lapse) for at least 2 years. Some companies demand an even longer period of continuous insurance. If your preferred company won’t take you back, you may end up in the “non-standard or “specialty market. Expect much higher premiums, less broad coverage, and limited payment options.

Keep Your Leverage Against the Insurance Company

Keep your policy in force until YOU choose to cancel it.

Down to the wire? Most insurers now accept credit cards.

4 WAYS TO MAKE SURE YOUR COVERAGE DOESN’T LAPSE

Set up automatic withdrawal of insurance premium (monthly, quarterly or annual);
Notify your agent right away of any changes in mortgage company or address;
Notify your agent if you change address or phone number;
Update Maine Bureau of Motor Vehicles with any address changes.

If Your Maine Homeowners or Auto Policy Cancels

The insurance company may give you another chance IF:

you’re a long-term insurance company customer;
you caught your lapse very quickly; and
you have a good claim and payment history;Contact your agent right away. They’ll try use their leverage with the insurance company on your behalf. They don’t always win. If they do, the insurance company will need immediate payment and a signed “no loss statement”. Only then will they reinstate your coverage.

Why Did My Maine Auto Insurance Go Up?

Posted on January 18, 2017March 27, 2019 by admin

You’re a careful driver. You haven’t had an accident or a ticket in years. You drive the same old car. Maybe you drive less because you retired, or bike to work. Why did your auto insurance price go up?

It’s not just you. Average US auto insurance rates increased by about 11% the 5 years from 2011 to 2016. Maine’s rates remain among the lowest in the nation, but so are our incomes. Fortunately, your personal behavior and situation greatly affect your car insurance costs. You do have some control over what you pay for car insurance.

Why Did My Car Insurance Increase?

You Had an Accident

Insurance companies charge more after an accident – some even charge if the accident wasn’t your fault. That’s because insurance data shows that if you’ve had one accident, you’re more likely to have another than someone who hasn’t had any. Some insurers charge for 3 years, some as much as 5.

You Got a Ticket

Speeding tickets and other moving violations flag you as a higher accident risk to insurance companies. Some insurance companies don’t charge for the first ticket, but they charge for the next, and even more for any future tickets. As with accidents, different insurers surcharge your policy for 3 or 5 years after a violation.

You Have a Young Driver

Inexperienced drivers have more accidents, so they cost more to insure – at least until they can establish a good record. If your child recently got their license or permit, expect to pay more for a few years. Insurance companies do offer discounts for honor roll / dean’s list students, students who are away from home without a car, and those who passed a driver’s ed course. Check with your agent to be sure you’re getting the discounts you deserve.

Your Credit Score Recently Dropped

Drivers with excellent credit tend to pay less than others. Insurance records show that they file fewer claims than those with lower scores. Credit score impacts your “insurance score”, which almost every insurer in Maine uses to set your rate. Some insurers review your score every few years. Others freeze your score when you apply, unless you ask them to re-run your score. If your score isn’t as good as when you started your policy, your car insurance may go up. Each insurer uses a different formula for insurance score. Talk to your agent to see if your current insurance company is still the best value.

Your Insurance Company Has Lost Money

Overall insurance company results affect your rates, too. Insurance pools the experience of your neighbors with yours. That’ good, because it reduces your risk and limiting your expense to a budgetable amount. It’s bad if your insurer has paid so many claims for other people that it affects your rates.

Insurance companies are good at estimating claim expenses. But, they’re not perfect. A large hail storm, or unexpected factors (like lower gas prices) can catch them off-guard. Some years, your insurance company pays more in claims than they collect in premium. If they do that for too many years, they must increase rates to collect enough to pay future claims.

Your Insurance Company Thinks You Drive More Than You Do

How you use your car affects your car insurance rates. When you started your policy, your agent asked whether you drove to work and how many miles a year you drove. If you’ve since changed jobs, retired, or commuting a different way, call your agent.

Some insurers offer custom rates if you allow them to monitor your driving. The savings can be considerable: as much as 30% if you drive very few miles. Contact your agent if you’re interested in learning more about these pay-as-you-drive plans.

How Can I Reduce My Auto Insurance Costs?

First, drive safely. A clean driving record is the best way to control your auto insurance price. Here are some others:

Maintain a good credit score;
Make sure you’re getting all the auto insurance discounts you deserve;
Consider increasing your deductibles;
Pay your premiums up-front or automatically (some insurers offer discounts);
Take a Maine defensive driving class (55+ drivers earn an insurance discount for 3 years);
Remove comprehensive and collision coverage on low-valued vehicles.
Suspend liability coverage for seasonal vehicles.

Should I Shop My Car Insurance?

If you live in Southern Maine, contact a Noyes Hall & Allen Insurance agent for a review at 207-799-5541. Not ready to talk to a human yet? You can still compare prices from up to 6 Maine auto insurance companies online on our web site.

When you chat with us, we can provide personalized, custom, professional advice. As a Trusted Choice insurance agent, we are independent and committed to you.

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Moving or Relocating to Portland Maine: How to Register a Car

Posted on January 4, 2017March 27, 2019 by admin

If you’re moving or relocating to Portland Maine, you’ll be eager to take care of business once you’ve settled in. Well, maybe not. But, you’ll feel better after you do it. You’ll need to get a Maine driver’s license and register your car in Maine within 30 days. Here are the steps.

Step One: Get Maine Car Insurance

Maine requires every vehicle owner to have insurance. This, and our mostly rural character, makes cheap auto insurance a way of life. Maine has the lowest average car insurance costs in the U.S.

Shopping for car insurance isn’t as bad as you think. Nobody does it for fun, but it will go faster if you have your old policy information handy.

If you’re looking for Maine auto insurance and live in Southern Maine, we can help. As an independent agency, we offer a choice of many insurance companies at once. You can get up to 6 Maine auto insurance quotes online in 10 minutes, or call a Noyes Hall & Allen agent to get your quotes.

Step Two: Visit City or Town Hall

Take your insurance card and your out-of-state title and registration to your local municipal office. Note your vehicle mileage. You’re going to need that to register. They’ll collect excise tax, a type of vehicle property tax. Excise tax is based upon the age and “cost new” of your vehicle. If you call ahead, your city or town can tell you how much your excise tax will be.

Most Maine cities and towns including Portland, Falmouth, South Portland, Cape Elizabeth, Scarborough and Westbrook provide standard Maine license plates. If you want vanity plates, order them from Maine BMV.

Step Three: Get Your Maine Drivers License

Maine Bureau of Motor Vehicles issues drivers licenses. As long as your out-of-state license is valid and your name hasn’t changed, it’s easy to convert it to a Maine license. You’ll need to:

Provide proof of residency (your auto registration should suffice)
Take an eye test
Turn in you old license (sorry, we know that picture was your favorite)
Pay a fee.

Greater Portland area Bureau of Motor Vehicle Branch Locations:

Maine BMV Portland: 125 Presumpscot St. 04103 207-822-6400

Maine BMV Scarborough: 200 Expedition Drive, Suite G 04074 207-883-2596

Do I Have to Get a Maine Inspection Sticker?

Yes, but maybe not right away. If you have a current inspection from another state, you’re not required to get a Maine State auto inspection until that expires. A lot of people do it at the same time as registration to make it easier to remember to renew both. Maine registration and inspection each last for a year.

Don’t Forget to Insure Your “Stuff”

Many Portland Maine landlords require proof of renters insurance. Even if they don’t it’s a good idea to protect your belongings from fire, theft and other disasters. We can quote Portland Maine renters insurance in 10 minutes or less. When it comes time to buy a home in Maine, or if you have questions about Maine insurance, we’re here to help. We offer a choice of several preferred insurance companies. We’re independent and committed to you.

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When a Great Car Insurance Quote Isn’t

Posted on December 13, 2016July 26, 2023 by admin

We all see them. Those auto insurance solicitations in the mail, online or on TV. Some of them are really funny. Some promise lots of savings. How can you tell if they’re real or not?

One of our clients shared this mail solicitation from an insurance company looking to quote their auto insurance. The quote looked to be about half what they are paying now. After we reviewed it with him, the client was happy to stay with their current insurer. Here’s some of what we pointed out to them.

We’ve blanked out the information about the other company on the letter below. We’re not out to embarrass anyone. But, we share it so that you can look critically at the solicitations you receive. If it sounds too good to be true, it probably is.

6 Reasons Why This “Good Deal” Isn’t.

1. You are “Pre-approved”

Read closely. It doesn’t say that you’re approved for the rate they’ve quoted. In fact, unless you’re a 45-year-old married man who drives a 2014 Subaru Impreza (which the recipient was not), and have very good credit, your quote could be a lot different. What you’re approved for is to receive this letter. Don’t you feel lucky?

2. “Average $446 per Year Savings”

Notice that “7 out of 10 drivers who switched saved money – an average of $446 per year”. A few questions leap to mind:

How many drivers are we talking about? Did 10 people switch, or 10,000? Who knows.
How many drivers didn’t switch? If 95% of people who went through the process didn’t change, is it worth responding to this flyer for a 5% chance of success?
Where do these drivers live? Ahh, the small print on the back says this is “national consumer data”. That makes a difference. Maine has the lowest auto premiums in the country, averaging $902. Per year. No insurance company is so consistently cheap that they save most people 50% on their car insurance. Even if this company does save you money, it’s unlikely to be anywhere near $446. It sounds good in the letter, though.
What about the 3 out of 10 who spent MORE money after signing on with this insurance company? The story doesn’t say. That’s probably not the outcome they wanted when they started the process, though.

3. $50,000 Per Person Bodily Injury?

Bodily injury liability insurance pays medical bills and pain & suffering for people you may hurt in an auto accident. It’s the only thing protecting your net worth from a lawsuit. $50,000 is the absolute minimum allowed in Maine. It’s also a lot less than the net worth of most 45-year-old married men driving 2014 Subarus. Did we mention that Maine’s Wrongful Death Statute allows up to $1,000,000 per person – 20X the limit this letter quotes?

Quoting $50,000 limits is a disservice to most Maine consumers. It makes the price look good, though. Maybe if you responded, the agent would up-sell you to higher limits (at a higher price). Or, maybe they’d just sell you the $50,000. Either way, you lose.

Related: How Much Liability Insurance Should You Buy? (Calculator)

4. $50,000 Uninsured Motorist Coverage?

This one’s arguably even worse. Uninsured Motorist is supposed to protect YOU and your family and passengers if you’re injured by someone who has little or no insurance. It pays the difference between the at-fault driver’s inadequate insurance limit and your UM limit. If you buy this quote, and are hit by someone with $50,000 liability coverage (which we’ve already determined is very low), this policy provides NO UM coverage at all. But at least the price for “no insurance” was lower 7 out of 10 times.

5. Who Can Rent a Car for $20 a Day?

We don’t know of any national rental firm that charges less than $30 a day in Portland, Maine. And that’s for a compact car at the insurance company’s corporate rate. Granted, $20 is better than $0, so this is probably better than the Uninsured Motorist Coverage above.

6. Why a Six Month Policy?

Some insurers prefer to write a 6 month policy instead of annual, because:

They can adjust rates more frequently. If they file a rate change, the new rate takes effect after 6 months, not 12.
They can charge you for an accident sooner. Same logic applies. The surcharge is applied at renewal, which is 6 months instead of 12.
The rates look lower. In fact our client first thought this quote was half the price he was paying now. Turns out, because he has an annual policy, the price was almost the same. And, his current coverage was WAY better.

Related: What to Expect from Maine Auto Insurance Rates in 2017

There’s A Better Way to Shop for Maine Auto Insurance

If you are looking for a second opinion on your Greater Portland Maine car insurance, contact Noyes Hall & Allen in South Portland. We’re independent. That means we offer the choice of 9 preferred insurance companies. We’ll also take time to customize our proposal to YOUR needs, not some fictitious Impreza-driving-45-year-old married-male. We’ll recommend coverage for you and tell you why. You can choose whether or not it’s a good deal for you.

If you’re a self-service type, you can get up to 7 Maine car insurance quotes in 10 minutes on our web site. Don’t worry: if you don’t see anything that that rocks your world, we won’t hound you afterwards. But we’re always happy to answer any questions you have during the process.

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