Maine Insurance Issues

Maine's size, population and business climate makes the insurance marketplace unique.

Maine Insurance Companies
Maine is the home of several insurance companies:

Maine Mutual Insurance Company
Maine Employers Mutual Insurance Company
Medical Mutual Insurance Company
Northeast Insurance Company
Casco Indemnity Company
Acadia Insurance Company
Patriot Insurance Company
Patrons Oxford Insurance Company

Maine Insurance Agents
The state has a wide variety of insurance agents and brokers. Most cities have twenty or more agencies.

Auto Insurance
Maine’s rural nature helps keep auto insurance rates low. The competitive insurance marketplace places average auto premiums at among the lowest in the country. Auto liability insurance, medical payments, and uninsured motorist insurance are required by state law.

The minimum limits of coverage are $50,000 for the injury to or death of any one person; $100,000 for one accident resulting in injury to or death of more than one person; and $25,000 for property damage. These amounts are usually shown as $50/100/25, or a combined single limit (for bodily injury and property damage liability) of $125,000 on your insurance policy.

The minimum amount of uninsured motorists coverage is $50,000 per person and $100,000 per accident.

Workers' Compensation
The workers' compensation insurance marketplace in Maine is moderately competitive. The vast majority of insurance buyers utilize Maine Employers Mutual Insurance for coverage. Approximately ten other insurers actively sell workers' compensation coverage. Coverage can be obtained from almost any Maine insurance agent.

There is an aggressive self insurance and group self insurance marketplace in the state.

Maine employers of all sizes are required by law to purchase workers' compensation insurance. Rates and premiums are determined using the facilities of the National Council of Compensation Insurance (NCCI). Insurance companies use the loss costs determined by NCCI and apply multipliers that are approved by the state insurance bureau.

Maine’s total workers' compensation premium accounts for less than one half of one percent of the entire US workers' compensation insurance marketplace. In the late 80’s and early 90’s Maine had the reputation within the insurance industry of one of the worst workers' compensation environments in the country. The workers' compensation climate has improved dramatically. Unfortunately, the reputation persists.

Property Insurance
The Maine property insurance marketplace is vibrant and quite competitive. Many insurers will compete aggressively for business. Problem classes of property include vacant properties, pre 1950 apartment buildings and properties located on some of the smaller coastal islands.

Web Resources
Maine Bureau of Insurance
Maine Workers' Compensation Board
2004 Bureau of Insurance Annual Report