March 29, 2022—Members of the auto body repair industry highlighted the consequences of low reimbursement rates set by insurers and urged Massachusetts lawmakers at a recent hearing to report favorably on a bill that intends to fix the issue.
According to an article by the Daily Hampshire Gazette, auto body shops have been advocating for an increase in the rate at which they are reimbursed by insurance companies.
Shop owners, technical instructors, and auto body industry organizations testified before the Special Commission on Auto Body Labor Rates about their experiences with insurance companies that they said manipulate the market and underpay shops.
“Large organizations in the other areas of the country are going through similar challenges, and they have been routinely seeing an increase in rates, and are even demanding for more,” said Aaron Schulenburg, executive director at the Society of Collision Repair Specialists, which represents auto body shops across the country. “Now think about how that extrapolates to businesses in Massachusetts, who have not seen any increases in decades.”
The special commission, upon the request of business owners, plans an in-person meeting soon at a vocational school, to speak with enrolled trainees looking to get into the trade. With the testimony completed, the commission will issue a report before a June 30 deadline.
