AUGUSTA - A bill sponsored by Rep. Jessica Fay, D-Raymond, to make auto insurance companies use appropriate comparisons when determining payouts became law last week.
The bill, LD 1176, An Act To Improve Fairness in Auto Insurance Claims, requires auto insurance companies to use a comparable vehicle from one of the New England states or New York when assessing the value of a vehicle to determine how much to pay a consumer for damage. They can only use a vehicle from farther away if they cannot find a comparable vehicle in the northeast.
A constituent suggested this bill to Fay after their truck was destroyed in an accident, and their insurance company used vehicle values from Nebraska, New Mexico and Indiana, where vehicle prices tend to be lower than in the Northeast. The consumer found numerous comparable vehicles locally, with an average price that was 20% higher than the quotes from his insurance company, but they were not accepted by the company.
"When a constituent brought this issue to me, I knew that the system insurance companies were using was unfair, and biased against the consumer," said Fay. "I am so pleased that this bill helps level the playing field for folks who have had auto insurance claims."
Fay's measure will go into effect 90 days after the Legislatures special session adjourns.
Fay is serving her third term in the Maine House and represents part of Casco, part of Poland and part of Raymond. She serves on the Appropriations and Financial and Affairs Committee.
Contact:
Jackie Merrill [Fay], c .812-1111