Highlights Lack of Consumer Interest

WASHINGTON, D.C., July 18, 2017 – On June 20, Maine Gov. Paul LePage vetoed Maine LD 1540. If enacted, LD 1540 would have clarified a provision in Maine’s anti-steering law, specifically regarding an insurer’s responsibility to convey that the insured or claimant has the legal right to choose the motor vehicle repair service to fix the vehicle.

Governor LePage submitted his position to the legislature, explaining:

“Under the authority vested in me by Article IV, Part Third, Section 2 of the Constitution of the State of Maine, I am hereby vetoing LD 1540, ‘An Act to Protect Consumers’ Freedom of Choice in Auto Collision Repairs.’

“LD 1540 appears to be a solution in search of a problem. If auto insurance companies were truly steering business toward specific collision repair businesses, this may be a discussion worth having. But over the course of the last nine years, Maine’s insurance bureau has only received six consumer complaints regarding this issue; two of those complaints were that insurers did not direct insureds to shops participating in the insurer’s networks.

“Additionally, the Superintendent of Insurance conducted a study of the seven largest auto insurance carriers in Maine and did not identify any instances of steering.

“This bill micromanages Maine businesses and creates more unnecessary regulations for Maine’s auto insurance industry. For this reason, I return LD 1540 unsigned and vetoed.”

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and collision repair professionals. ASA services an international membership based that includes numerous state affiliate and chapter groups.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. To take advantage of the many benefits of membership in ASA, please visit ASAshop.org or call (817) 514-2900.

For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA’s legislative website at TakingTheHill.com.

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