Classic Auto Body Inc. filed a class-action lawsuit against State Farm for allegedly telling its customers that the plaintiff's work is substandard and steering them towards shops that provide discounts.
In their complaints, the body shops argue that the insurance companies engaged in two lines of tactics in pursuit of a single goal: to depress the shops’ rates for automobile repair. The first line of tactics was designed to set a “market rate,” which reflected not the forces of the market but an artificial rate that would benefit only the insurance companies.
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.