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Automobile Protection
From the moment you receive a driver's license or you first automobile, the purchase of auto insurance is critical. Understanding the coverage, protection and risks associated with premium determination is helpful in making an informed insurance purchase.
Physical damage coverage, such as collision and comprehensive, pay for the actual damages sustained to covered vehicles. Collision protects against losses caused by striking an object or being struck by a moving object.
Comprehensive coverage covers all other physical losses that are not classified as a collision such as fire, theft, vandalism and glass breakage. The higher the deductible the lower the cost of the insurance.
Liability coverage comes in two forms: bodily injury and property damage. Liability coverage protects the policyholder and members of the household from property damage or injury to another person. The State of Maine requires limits of $50,000 per person/$l00,000 per accident for bodily injury and S25,000 for property damage.
Driver experience is the most important consideration that all insurance companies look at in determining insurability and premiums. Assessing motor vehicle driving records is the first step in the premium evaluation process. Drivers with clean records and no prior losses receive the preferred rates while drivers with accidents, speeding convictions or other driving infractions will be assessed the standard or higher rating. Young drivers, under 21 years of age, with 7 years or less of driving experience are not eligible for preferred rates.
See our Automobile Insurance FAQ section for further information.
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