How can I reduce my premiums?

There are a number of ways to trim your insurance costs. The following are listed in order from the greatest cost savings to the least.

• Combine your coverages. Companies credit your insurance by as much as 10% for insuring both your auto and home.
  
• Make sure you are receiving a "multi-car" credit if you have more than one vehicle. This often reduces premiums by as much as 20%.
  
• Increase deductibles or consider removing physical damage coverage on older vehicles. The old conventional wisdom used to be 7 years; that isn't always appropriate, but there is a point at which the premium paid outweighs the settlement you would get for the car.
  
• Make sure you have credits for safety devices, such as: airbags; anti-lock brakes; alarm systems.
  
• Some companies offer non-smoker discounts.
  
• Check with your agent before car-shopping. It is amazing the insurance cost differential between some otherwise-similar vehicles.

Do I need to buy the insurance offered by car rental agencies?

If you are renting a car or van in the U.S., probably not. All Maine auto insurance policies allow you to take your physical damage coverage (comprehensive and collision), and apply them to a short-term rental vehicle.

You may wish to purchase insurance through the car rental company in the following circumstances:

• You do not carry physical damage coverage on any of your vehicles.
  
• You do not wish to absorb your policy deductible for a rental vehicle.
  
• You are renting out of the country. Your auto policy only applies in the U.S., its territories and possessions, Puerto Rico and Canada.
  
• You are renting a vehicle other than a private passenger auto, pickup, van or trailer (e.g. a moped, a camper trailer, motorhome, or a motorcycle). This is especially important if you are renting a vehicle for business use!
  

If you have questions, it is best to ask your insurance agent about your particular circumstance.

What happens when my child becomes licensed?

Single drivers under the age of 25 are much more likely to get into an accident than other drivers. Of course, this means that more claims are paid on young drivers, and so premiums must increase to pay for these claims. But how much your individual policy increases depends on many different factors:

• Occasional or Principal Operator? If your child will not be a primary driver of a vehicle (i.e. there are more drivers in the household than there are vehicles), the increase will not be nearly as large.
  
• Good Student / Driver Training status. Insurers give discounts for Honor Roll or Dean's List students, and also for passing an approved Driver Education course.
  
• How long the driver has been licensed. Most companies apply an "inexperience surcharge" for the first two years of licensure. After that period, the surcharge is removed, although they will still pay higher premiums than a driver over 25.
  
• Driving Record. As with any driver, the cleaner the record, the better the insurance rates. But, since young drivers pay higher rates to begin with, each "surcharge point" costs them even more than other drivers.

I drive a company car. How does this affect my insurance?

Your personal auto policy, unless specially endorsed, does NOT insure you for a vehicle which is available for your regular use.

All auto insurance follows the vehicle first. So, if you are a salesperson, for example, with a company car, your employer's coverage on the vehicle would be primary.  Commercial Insurance policies typically do provide liability coverage for anyone using a company vehicle with permission.

BUT, your employer's policy is only as good as the liability limits that your employer has chosen. Moreover, the employer's policy could cancel without you being aware of it, leaving you without coverage.

Your employer's coverage does not protect you against liability for injuries to a fellow employee. If you are driving a company car, with a co-worker as your passenger, you are liable for any injuries that person sustains in an accident. Your personal auto policy can be endorsed to provide this coverage, for a very reasonable cost. You should call your agent to make sure you have this coverage!