New Jersey Auto Insurance Industry Calls For Fair Pricing Among Body Shops

Post Date 2.17.12 –  Although efforts to change the auto insurance repair laws in New Jersey have failed, there is legislation being reviewed by New Jersey lawmakers to review hourly rates both body and mechanic repair shops charge auto insurance carriers. The auto insurance repair labor fee bill will request the formation of a committee of 12 law makers, other legislators and reps from the state car insurance and auto body repair fields. This committee would be empowered to set rates of pay for those repairing automobiles and should raise their earnings.  This should bring car repair shops in line with rates the rest of the country charges car insurance companiesNew Jersey State lawmakers have already agreed to the conditions set out in the bill. Workers in the auto repair and collision repair industries have seen a stall in their rates of pay over the last several years. This happens because car insurance carriers systematically choose low-rate auto-body shops to conduct repairs on vehicles.  New Jersey representatives for the car insurance bill contend that some body shops involved in this practice use sub-standard parts in repairing vehicles to keep their rates low enough to garner continued referrals. The car insurance industry contends that the repair marketplace, and not state legislators, should be responsible for setting rates and establishing guidelines for payment of workers. They believe the bill will inflate the cost of repairs.


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