In order to drive a vehicle in Maine, residents must prove they can cover the cost of damages (either property or injury) in the case of an auto accident. This means drivers must carry liability insurance, uninsured motorists coverage, and medical payments coverage to ensure financial responsibility.

Ways to Establish Financial Responsibility

Some states give you a few choices when it comes to establishing financial responsibility, but in Maine your only option is to purchase auto insurance. If for some reason you lack the means to purchase a policy, the state offers an alternative:

Assigned Risk

The Maine Automobile Insurance Plan offers help if you cannot obtain coverage through regular means. The way it works is the state requires all insurance companies who sell auto coverage in Maine to contribute to this shared market.

Maine Auto Insurance Requirements for Private Passenger Vehicles

As stated above you must have liability insurance, uninsured motorists coverage, and medical payments coverage from an auto insurance provider. Here are the minimums to satisfy the state's financial responsibility law:

• $50,000 for the injury/death to any one person

• $100,000 for one accident resulting in injury/death of more than one person

• $25,000 for property damage

You will see these values most commonly displayed as 50/100/25.

Do some research on the types of coverage out there before you decide to buy. You might want to purchase more coverage than what the state requires (depending on the value of the assets you wish to protect). Then shop around for auto insurance as there are many providers offering competitive rates.

Proof of Insurance and Financial Responsibility

You must notify the state when you obtain coverage; Maine does not have any direct-reporting system in place to notify the Bureau of Motor Vehicles (BMV). As proof of insurance, your carrier may provide you with:

• An insurance card

• A declaration page or a letter from your insurance company (or agent)

• An insurance binder

• A summary document of the insurance policy

Just be sure your form of proof shows:

• The amount of insurance (state minimum liability requirements)

• The type of insurance coverage

• The effective and expiration dates

• The policy number

• Your name

• Your vehicle’s make, model, year, license plate numbers, and VIN

Penalties for Failure to Maintain Financial Responsibility

You must show proof of insurance at the time of registration, but if you allow your coverage to lapse you could face fines, a ticket with a charge of uninsured operation, and even registration and license suspension.

If a peace officer pulls you over and cites you for no proof of insurance, you must immediately purchase a policy with sufficient coverage. Then you will be required to file proof of financial responsibility via an SR-22 insurance certificate. If you fail to do so the state could suspend your registration and possibly your license.

The BMV is available to answer questions you have regarding penalties. Contact the BMV at (207) 624-9000 ext. 52108 or write:

• Bureau of Motor Vehicles

• Driver License Services Division

• 29 State House Station

• Augusta, Maine 04333-0029

If you have any further questions regarding a personal situation involving insurance, contact The Bureau of Insurance at (207) 624-8475 or write to:

• Department of Professional & Financial Regulation

• Bureau of Insurance

• 34 State House Station

• Augusta, Maine 04333