April 17, 2017—The newest version of a Texas House Bill would determine the state’s prevailing rate via the use of an unbiased third-party labor rate survey. The bill also would prevent carriers from using coercion aimed at bringing customers to the carrier’s network of direct repair shops agreeing to repair a vehicle under certain terms or rates.

Repair facilities in multiple states have been critical of carriers claiming a prevailing rate but denying to reveal how that value was calculated.

House Bill 3840 in Texas would remove insurers completely from surveying. The bill states that a prevailing rate means a rate identified by a survey that’s conducted by an unbiased third party, based on posted retail labor rates.  

For more information on the recent Texas House Insurance Committee hearing, click here.