Maine Vehicle Theft Rates on the Rise

The Pine Tree State is home to some of the Nation’s lowest insurance rates. When looking at Maine’s lower population density and minimal crime, it’s easy to see why motorists pay an average expenditure of only $600. But according to a report from The Portland Press Herald, the Maine Department of Public Safety announced on Tuesday that the amount of crime in virtually every category—including motor vehicle theft—went up between 2010 and 2011. What many residents may not know is that the number of vehicle-theft claims filed in their area can have a noticeable impact on the price of comprehensive car insurance.Public Safety Commissioner John Morris reported that crime in the Pine Tree State as a whole increased 5.4 percent between 2010 and 2011. These statistics include a 5.5 percent increase in motor vehicles thefts. Unfortunately for vehicle owners, these statistics could potentially translate into higher premiums. If property crime and auto theft in a specific area begins to climb, it typically leads to more comprehensive insurance claims.When a coverage provider pays out more claims, it means greater losses for them, which usually translates into higher premiums for drivers living in the same territory. The reason for this is auto insurance costs are based on the probability that a policyholder will file a claim. If a Maine resident lives in a territory with a higher number of motor vehicle thefts, insurers will compensate for this added risk by charging a higher premium for comprehensive coverage.Overall Maine Crime Statistics Are Getting BetterBut despite this recent report, residents should know that over the past ten years the rate of car thefts has actually decreased considerably. In 2001 there were over 1,600 reported thefts, but only 1,039 reported cases in 2011. Overall, this amounts to a 10-year crime trend showing a 37 percent decrease in vehicle thefts.While property crime and auto thefts in a surrounding area can lead to higher rates, there are steps that residents can take to help keep their Maine vehicle insurance rates affordable by properly securing their automobiles. Purchasing a car that is equipped with an active or passive security system is a great way to thwart criminals, and it can also amount to significant savings.Most insurers in the Pine Tree State reward policyholders who actively work to protect their cars with special discounts. Common features like car alarms or VIN etchings are considered passive security measures that can help deter potential thieves. More advanced systems, like GPS tracking and ignition-disabling devices can also help drivers qualify for insurance discounts that can drive down policy prices and counter any increasing crime trends like those in Maine.

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Teen Drivers: When Rates Start Going Down

You got your license at an early age, and after months of driving you’re more confident than ever behind the wheel. The only problem is that your insurance rates are still higher than the average driver’s. A lot of people already know that teenagers are charged more for vehicle coverage because they lack experience and are involved in more accidents than any other age group. But when do teen drivers start to see more reasonable rates?

Although a young driver may feel that they are the most careful motorist on the road, insurance companies need to see proof in the form of a clean driving record. After going at least three years with no accidents, claims, or moving violations, younger motorists are likely to see a small drop in coverage costs. Rates should keep going down slightly as the driver gains more experience, as long as he or she keeps a clean record. And by the time drivers are 25, they’re likely to start seeing much more reasonable rates than when they first got behind the wheel.

Lower Rates Take Time

For most companies, three years of driving is a reasonable amount of experience behind the wheel. Because most insurers only look at the past three years of driving experience when setting rates, a complete record that is free of claims or moving violations is often favorable, and will likely lead to lower rates. In California, all drivers who have a completely clean record and have been driving for at least three years are entitled to a good-driver discount.

Information from the Highway Loss Data Institute (HLDI) shows that car insurance losses drop as drivers age and that they file claims at a much lower rate by the time they’re 25. When the HLDI compared claim frequencies among different age groups, it found that the rate at which 20- to 24-year-olds filed property damage claims was 35 percent lower than that of 16- to 19-year-olds. And the rate for 25- to 29-year-olds was another 30 percent lower than the rate for 20- to 24-year-olds.

The exact amount that insurance costs may decrease over the years is dependent on the policyholder’s claims history, as well as the policy provider. While some companies are more than happy to hand out savings to responsible drivers, others may only make minor adjustments. If a younger driver manages to go years without a single rate reduction, they may want to consider switching insurers.

Although most young motorists try their best to avoid filing a claim, accidents happen. If a teenager is forced to file a claim, it doesn’t necessarily mean that they’ll never be able to find affordable coverage ever again, it only means that they need to go a few more years without any driving-record blemishes.

Shop for Cheaper Options

Despite what many people may say, it is possible to find cheap insurance for young drivers, especially for teens that have gone at least three years without a single accident or moving violation. While younger motorists may not find the prices that many 30-year-olds may find, drivers can still shop around for the lowest-priced policy that is available.

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