NAMIC Opposes Massachusetts Legislation to Set Auto Labor Rates

NAMIC Opposes Massachusetts Legislation to Set Auto Labor Rates

In testimony submitted to the Joint Committee on Financial Services, the National Association of Mutual Insurance Companies opposed legislation, H. 969 and S. 497, that would require the state to set a minimum hourly labor rate that insurers must pay for auto repairs.

John Murphy, NAMIC’s state affairs manager for the Northeast, says the legislation is unnecessary and ill-advised.

“We do not have a situation in Massachusetts where damaged cars are going unrepaired. There are plenty of repair shops ready, willing, and able to repair cars at prices insurers are willing to pay. There’s no need for the state to step in and set an arbitrary, minimum hourly rate,” he said.

“The system is working as it should. Cars are being repaired at competitive rates, thus helping to keep insurance costs as low as possible for Massachusetts policyholders,” Murphy continued. “While every service provider would like to make more money, the marketplace – not state government – should determine when that should happen.”

Lisa Floreancig
Public Affairs Director - State & Policy Affairs