In Massachusetts, the current average reimbursable hourly labor rate is approximately $38, which is considerably lower than all other New England states and is the lowest in the country by at least $3, with the national average at almost $50 per hour. Our rate here is unilaterally set by each individual insurance company. As a result, the rate has seen a minimal increase over the last 20 years.
This legislation creates a regulatory process through which the Commissioner of the Division of Insurance may increase the hourly labor rates for which a repairer is reimbursed by insurance companies for automobile body repairs.