Updated July 2026
What Is Liability Insurance Insurance?
Liability insurance is split into two parts: bodily injury liability, which pays medical bills, lost wages, and legal costs when you injure someone in an accident, and property damage liability, which pays to repair or replace the other driver's vehicle or damaged property. Your insurer pays claims up to your policy limits, then defends you in court if the injured party sues. If damages exceed your limits, you pay the difference out of pocket.
- You rear-end a stopped car at a red light. The other driver has $8,000 in medical bills and $5,500 in vehicle damage. Your bodily injury liability pays the $8,000 medical claim, and your property damage liability pays the $5,500 repair bill. Total payout: $13,500, well within Maine's minimum limits.
- You cause a three-car pileup on I-295. Two drivers sustain injuries totaling $120,000 in medical costs, and property damage across all vehicles is $32,000. Maine's minimum bodily injury limit is $100,000 per accident, so your insurer pays $100,000 and you owe the remaining $20,000 personally. Your property damage limit is $25,000, leaving you responsible for $7,000 in vehicle repairs.
- You lose control on ice and crash through a fence into a parked boat. The property owner files a claim for $18,000 in damage to the fence, landscaping, and boat. Your property damage liability pays the full $18,000 because it falls under your $25,000 limit. Your own vehicle damage is not covered unless you carry collision coverage separately.
Who Needs Liability Insurance Insurance?
Liability insurance is legally required for every registered vehicle in Maine, so all drivers must carry it. Drivers who own assets such as a home, retirement accounts, or savings above $100,000 should carry limits well above the state minimum because Maine law allows injured parties to sue for damages exceeding your policy limits, and a judgment can attach to your wages and property.
Carry liability limits equal to your net worth or higher. If you have $200,000 in assets, a 50/100/25 policy leaves you exposed in any serious accident. Increasing to 250/500/100 costs $20–$50 more per month and protects everything you own from a lawsuit.
How Much Does Liability Insurance Insurance Cost?
Liability-only policies in Maine typically cost $45–$85 per month ($540–$1,020 annually) at state minimum limits. Higher limits such as 100/300/100 add $15–$35 per month.
- Your at-fault accident history — one at-fault claim in the past three years can raise liability premiums 20–40 percent.
- Your liability limits — doubling from 50/100/25 to 100/300/50 typically adds $180–$420 annually.
- Your ZIP code — Portland and Bangor drivers pay more due to higher accident frequency and repair costs than rural areas.
- Your age and driving experience — drivers under 25 or with fewer than three years of licensed driving pay higher liability rates.
- Your credit-based insurance score — Maine allows insurers to use credit history, and lower scores correlate with higher liability premiums.