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.
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.
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.
It’s a tight housing market in Maine right now. Whether your rent or own, that means property insurance is more important than ever. High costs and tight supply define the current market.
Building material costs remain at historic highs.
Contractors are busy, often scheduling work months ahead.
Real estate inventory is very low, which means it’s hard to find temporary housing.
Whether you’re a homeowner, condo owner or renter, property insurance can help. If disaster strikes your home, property insurance may help in three ways.
Cleanup Expenses
Property insurance can pay to remove smoke odors from furniture or clothing. It can also pay to dry water-damaged property. This helps you to salvage the things you need and your favorite belongings. Without homeowners, condo or renters insurance, you would have to pay these costs out of pocket.
Temporary Living Expenses
What if your home is damaged so badly that you can’t stay there? Your homeowners, condo or renters insurance may help. It may pay the extra cost for you to stay elsewhere until you can move back or find a new place.
Since housing is tight, that can be expensive. Make sure you have enough Additional Living Expense coverage. We recommend at least 3 months’ rent cost for renters and 12 months rent cost for home or condo owners.
Rebuilding, Repair and Replacement Costs
If you own your home or condo, your property insurance may cover the cost to repair fire, water or wind damage. What if your belongings can’t be repaired? Your renters, homeowners or condo policy may pay to replace them.
Make sure you have replacement cost coverage. “Off the shelf” policies may only pay depreciated value.
Check your Personal Property coverage limit. Is it enough to replace your belongings “new for old”. Increase your insurance if necessary.
If you own your place, check your Dwelling coverage limit. Is it enough to rebuild? Building costs are very high in the tight Maine housing market. Make sure your policy is keeping up with inflation.
Local, Professional Advice is Important
You can buy property insurance on the internet or from a call center. But why?
A local insurance agent doesn’t cost extra. They also know the local market and can advise you before and during a claim.
As an independent agent Noyes Hall & Allen Insurance in South Portland offers a choice of many insurance companies. We can compare options for you. That saves time and money. Contact a Noyes Hall & Allen agent for more information at 207-799-5541. We’re independent and committed to you.
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.
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.
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.
Frozen pipes happen quickly in frigid weather. All it takes is one small area with insufficient insulation to cause major water damage.
Greater Portland and Maine could experience the coldest air mass we’ve seen in years. If you’ve made recent improvements to your home or business (additions, remodeling, new heat systems, etc.), this will be the harshest test your property has had to endure since then. Here’s how to avoid damage from frozen pipes, and what to do if your pipes freeze.
In Very Cold Weather
Open cupboard doors below sinks. This allows warm air to circulate, and helps keep pipes from freezing.
Turn on hot and cold faucets enough to let them drip slowly. Keeping water moving through the pipes prevents freezing.
If You Leave for More than a Day
Keep the temperature at a minimum 65 degrees F. People often set their thermostats lower than this and assume they’ll be ok. They find out the hard way that the temperature in the living or working space may be fine, but the temperature inside the walls, where the pipes are, may not.
Have someone check your property regularly. If your pipes freeze or water leaks, early discovery saves major damage.
Use a “low-temp alarm”. Plenty of inexpensive wireless devices can text or call you if the temp drops inside your property. Even better long-term solution: install a low-temperature alarm into a monitored security system.
Think You Have Frozen Pipes?
Don’t wait for them to burst.
Take measures to thaw them immediately, or call a plumber for assistance. Do NOT attempt to thaw them yourself with any sort of flame!
If your frozen pipes do burst…
Even a 1″ split in a pipe can cause thousands of dollars in damage in minutes. You need to act quickly to prevent additional damage.
Turn off the water at the main shutoff valve.
Clean up the water. You don’t want more damage than you already have. An insurance adjuster doesn’t need to see the water, but will want to inspect any damaged items.
If you have a lot of water, contact a remediation contractor. Your insurance agent can help you locate one.
Prevent further damage. Protect or remove any carpets, furniture, inventory or other items that can be damaged from further seepage.
Making an Insurance Claim for Frozen Pipes
Many standard homeowners and business property policies cover water damage resulting from frozen pipes. Not all policies are alike. Contact your agent to be sure what your policy covers.
Make temporary repairs and take other steps to protect your property from further damage.
Save receipts for what you spend and submit them to your insurance company for reimbursement.
Make a list of damaged items. If your home is so severely damaged that you cannot live there, save the receipts from any additional living expenses you incur for accomodations while repairs are being made.
We hope you and your property remain safe and warm through this cold weather.
Ice dam damage is a common problem in Maine and other cold weather areas. Learn the warning signs and how to prevent damage here.
Icicles and Ice Dams
You can have icicles on your roof without an ice dam. They affect different parts of your roof. But icicles hanging from eaves and gutters are often a warning sign of an ice dam on the roof. Ice dams and icicles are both caused by the freeze – thaw cycle.
Icicles form when ice or snow melt from your roof and freeze on the edge. They can be very heavy. When they fall, they can damage property or injure people.
Ice dams occur when snow melts and then re-freezes on your roof. If melted water works its way under your roof shingles and refreezes, it expands. Ice can trap (or dam) water on the roof, causing it to pool and back into the building. The resulting roof leak can cause damage inside the building. Untreated, it can cause mold and rot.
Insulation and Ventilation Prevent Ice Dam Damage
Proper insulation and ventilation help prevent the freeze – thaw cycle that creates ice dams. The goal is to keep your roof cold.
Good insulation between the ceiling and roof is key. Pay particular attention to openings like vents and hatches. EfficiencyMaine is a great resource to learn more about insulating – and saving heating and cooling costs. You can even set up an energy assessment.
Ventilation is another key. Allowing cold air to circulate between the insulation and the roof keeps your roof cooler. That reduces the freeze – thaw cycle that causes ice dams.
Maintenance Tips to Prevent Ice Dam Damage
Good maintenance is another way to avoid damage from ice dams.
Clear leaves and debris from downspouts and gutters before winter.
Allow downspouts and gutters to flow freely. Keep them free of snow and ice.
Rake snow from your roof with a special roof rake. Roof rakes allow you to stand on the ground and clear your roof, reducing chance of a fall or other injury.
Never chop ice with any sharp tool or hammer. This can damage your roof!
Trouble Signs
Look for these signs that an ice dam may be forming:
Icicles.
Water damage on inside ceilings or walls.
Exterior paint damage.
Your roof is clear when your neighbor’s is snow-covered. This can be a sign that your insulation is inadequate.
Ice Dam Damage and Insurance
Your home or business property insurance may cover water damage caused by ice dams. Sometimes, roof shingles are undamaged by ice dams, but water leaks inside. Check with your insurance agent to see if your home, condo, renters or business policy covers ice dam damage.
If you live or have a business in Southern Maine, including Greater Portland, contact a Noyes Hall & Allen Insurance agent at 207-799-5541. Because we offer a choice of many insurance companies, we can compare options to find the right fit for you.
Do you want to switch insurance agents? Has your agency sold or merged? Your favorite contact gone? Tired of talking to agents who don’t seem to know who you are? Or you just don’t click with your current agent. Maybe you want to switch insurance companies too. In any case, you’re in the market. Where to start?
You Can Switch Insurance Agents with the Same Insurance Company
Satisfied with your insurance company, but not your agent? Most insurers can transfer your policy to a new agent. Check the insurance company’s “find an agent” page and reach out to one. If they don’t feel like the right fit, contact another until you’re comfortable. However, timing matters here: Many companies only transfer policies at the renewal date.
You Can Switch Insurance Agents and Switch Insurance Companies
If you don’t love your insurance agent OR your insurance company, you’re ready for a fresh start. Here are some ways to find an agent that’s the right fit for you:
Call or meet them to explain your needs and preferences. Have your insurance policies handy. Can you picture yourself working with them? If you get that “square peg, round hole” feeling, contact another agent on your list.
What Kind of Agent is Best for You?
There are 2 kinds of insurance agents: exclusive (sometimes called “captive”) and independent. What’s the difference?
Exclusive agents work with one insurance company. They may be an employee of the insurer, or they might own a local franchise. The good news is that they will know their company’s policy terms, billing and procedures inside and out. Because they’re local, they also know your area and can provide individual advice.
On the other hand, independent agents offer achoice of several insurance companies. They can compare the policies, pricing and underwriting of each company to help you find the best fit. Moreover, if one insurance company hikes rates or changes in ways you don’t like, you don’t have to switch insurance agents. An independent agent can help you switch insurance companies.
Looking to Switch Insurance Agents or Companies in Maine?
If you live in Maine and are looking for an independent agent, contact Noyes Hall & Allen Insurance in South Portland at 207-799-5541. We offer a choice of many of Maine’s preferred insurance companies. Because of that, we can compare and help you find the best fit.
Insurance rates will increase in 2023 for individuals and businesses. Insurance people increasingly expect what they call a “hard market”. Underwriting gets tighter. Insurance rates rise. Appetite for risk shrinks. It’s part of the natural insurance cycle. Here’s why we’re seeing it now.
Insurance Rates Rise in Uncertainty
Insurance companies use history and future expectations to set rates. When they feel confident in their claim predictions, rates are more stable. When confidence is lower, their risk of getting it wrong is higher. That means prudent insurance companies have to charge more “just in case”.
These are uncertain and risky times. Weather and natural disasters are more extreme and difficult to forecast. Moreover, economic signals are mixed. Supply channels are challenged. Even public health is in flux. All that uncertainty prompts insurers to set rates cautiously. They need make sure they’ll be able to pay claims.
Inflation Affects Insurance
We all feel the effects of inflation. Prices are higher for everything from groceries and gas to lumber and plumbers. Insurance companies feel it too. Medical expenses, auto repairs rental, used cars, building materials and costs all increased dramatically during and after COVID.
Some of those costs have settled, but none are where they were before. Meanwhile, insurance companies had to pay 2020 claims with premiums collected using 2019 rates – before anyone knew what was coming.
Insurance Rates Rise After Disasters
Wildfires, tropical storms, temperature extremes, droughts and floods and other disasters are more frequent. Insurance companies have paid billions in property claims. It makes no difference whether they believe these are trends or blips. Insurance companies need to prepare to collect enough premium to pay losses.
The Reinsurance Effect
You buy insurance to protect your family or business from disaster. Insurance companies do the same. They buy reinsurance each year to protect them from going bankrupt due to a catastrophe. Of course, reinsurers set their rates based on losses and projections, too. Now, the property reinsurance rates that insurance companies pay are rising by double-digits. Insurance companies pass that cost on to consumers as part of their rates.
In Maine, we’re fortunate not to have many of these disasters. But we still share in the losses of other regions through reinsurance rates. And, we have harsh weather, too – remember the Ice Storm?
Insurance Rates Vary – Choice is Important
Although insurance costs are higher across the board, each insurer sets their own rates. That’s why it’s important to compare coverage and price to find the best value. As an independent insurance agency in South Portland, Noyes Hall & Allen Insurance offers a choice of several preferred insurance companies. Contact a Noyes Hall & Allen agent. We can help you compare and decide which is the best fit for you. We’re independent and committed to you.
Service line insurance is a new coverage that some homeowners insurers offer. It covers property not included in “off the shelf” policies. What is it, and do you need it? Find out here.
Service Line insurance covers replacement or repair of the damaged pipe. In addition, it covers excavation costs. Also, the cost to replace your excavated lawn or pavement. Some policies also cover costs for you to stay elsewhere while your home’s water or sewer system is not working.
How Much Service Line Coverage Can I Afford?
Service line coverage typically has a $10,000 limit, for example. And most Maine service line policies have a $500 deductible. And the cost is surprisingly reasonable: often less than $50 per year. So check with your agent to see what’s available to you.
Service Line Insurance Quotes
If you live in Southern Maine, contact a Noyes Hall & Allen agent for a home insurance quote that includes service line coverage. Call us at 207-799-5541 or get up to 5 insurance quotes online. Because we’re independent insurance agency in South Portland, we offer a choice of Maine’s preferred home insurance companies. As a result, we can compare to find you the best insurance value. In short, we’re independent and committed to you.
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%.
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.
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 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 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.
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.
