An Act Relating to Insurance Companies and Totaled Motor Vehicles

Sec. 1. 24-A MRSA §2910-B  is enacted to read:

§ 2910-B.  Motor vehicles determined a total loss

A motor vehicle insurance policy must allow the insured to maintain possession of a damaged motor vehicle insured under the policy that the insurer determines is a total loss if the insured provides a credible estimate from a motor vehicle mechanic or repair facility detailing repairs that, if performed, would conform the motor vehicle to the motor vehicle inspection standards in Title 29-A, section 1751. An insurer may deduct from a settlement paid for damage to an insured motor vehicle determined a total loss by the insurer an amount equal to the salvage value of the motor vehicle if the insured elects to maintain possession of the motor vehicle under this section.

summary

This bill requires motor vehicle insurance policies to allow an insured to maintain possession of an insured motor vehicle determined a total loss by the insurer if the insured provides a credible estimate from a motor vehicle mechanic or repair facility detailing repairs that, if performed, would conform the motor vehicle to state motor vehicle inspection standards. This bill allows an insurer to deduct from a settlement paid for damage to a totaled vehicle an amount equal to the motor vehicle’s salvage value if the insured elects to maintain possession of the motor vehicle.