Sunday’s Post 1/15/12 – Even though efforts to change auto accident repair laws in the State of Massachusetts have all failed in the recent past, a car insurance trade organization has renewed its efforts to change the laws which would support a more standard and  fair process for setting repair shop charges.  There is a bill now in the state house to be reviewed by lawmakers.  It would establish a sub-committee to review the  hourly rates for what both auto body and automotive repair shops charge for repairs as a result of car accidents.  The law would set proper minimum and maximum charges by both auto body shops and mechanical repair facilities.  The established rate chart of repairs should raise the profile of auto-body technicians whom are required to charge the lowest repair rates of any state in the country.  This committee would be empowered to set new rates of pay for workers that would bring their earnings in line with rates for the rest of the repair shops in the United States.

Workers in the auto repair and collision repair industries have seen a stall in their rates of pay over the last several years. Legislators say this happens because auto insurance carriers systematically choose a lower-rate auto facility to repairs vehicles covered by auto insurance. The state representatives for the bill feel many body shops involved in the practice of using sub-standard parts in repairing vehicles to keep their rates low and continued to receive referral work from the same auto insurance carriers. The insurance industry feels the marketplace, not state government, should be responsible for setting rates and establishing guidelines for paying its workers. They believe the new law will push-up the cost of car repairs.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602