Maine House Bill LD1401

Maine 2025-2026 Regular Session

• Introduced: 4/1/25
• Refer: 4/1/25
• Failed: 5/7/25

Caption

An Act to Repeal the Provisions of Law Requiring Motor Vehicle Liability Insurance Policies to Cover the Cost of Towing and Storing Certain Vehicles

Summary

LD 1401 would repeal a 2023 law that required motor vehicle liability insurance policies to include up to $500 in coverage for towing and storage charges when a vehicle is towed after an accident at the request of law enforcement. Under current law, that coverage is part of the minimum financial responsibility requirements for motor vehicle policies; this bill removes that specific obligation from insurers and policyholders. The bill also makes conforming changes to the vehicle-holding and towing provisions tied to payment of reasonable towing and storage charges. In practical terms, the measure would shift responsibility for towing and storage costs away from the insurance policy mandate and back toward the vehicle owner or other parties responsible for paying those charges, while leaving the general rules allowing towing and storage operators to retain vehicles until charges are paid in place. The bill does not eliminate towing or storage fees themselves; it only repeals the requirement that auto liability policies cover those charges up to the specified limit.

Impact

The bill would amend Maine’s motor vehicle insurance statutes by deleting the requirement that liability policies include coverage for towing and storage charges up to $500 per accident in certain law-enforcement-ordered tows. It would also revise related statutory language governing when a person holding or storing a vehicle may retain it until towing and storage charges are paid. The main affected parties are auto insurers, policyholders, vehicle owners, towing and storage operators, and law enforcement-ordered tow situations.

Sentiment

The available voting history suggests the bill faced significant opposition. On May 6, 2025, the House adopted an “Ought Not to Pass” report by a vote of 80-61, indicating that a majority of members did not support advancing the repeal. No committee transcript is available, so the record reflects sentiment primarily through the floor vote rather than detailed debate.

Contention

The central point of contention is whether insurance policies should continue to cover towing and storage charges arising from law-enforcement-requested tows. Supporters of repeal likely view the mandate as an added insurance cost or an unnecessary coverage requirement, while opponents likely see it as consumer protection that helps drivers avoid immediate out-of-pocket expenses after an accident or police tow. The split House vote indicates the issue was contested, with disagreement over who should bear these costs: insurers and policyholders collectively, or individual vehicle owners at the time charges are incurred.