Bill > H0384

This bill aims to establish minimum reimbursement rates for labor in automobile insurance claims in Vermont by requiring the Commissioner of Financial Regulation to conduct a comprehensive market survey of hourly labor rates charged by automobile repair facilities in the state. The Commissioner will investigate labor rates paid by insurance companies, compare these rates with other New England states, and potentially review additional national data. Based on this research, the Commissioner will set a minimum hourly insurance reimbursement rate for both first-party and third-party claims, ensuring the rate is fair and reasonable while considering competitive prices. The bill also mandates the development of an annual adjustment formula using the Consumer Price Index published by the U.S. Bureau of Labor and Statistics, with the new minimum rates taking effect on January 1, 2026. Importantly, the legislation does not prevent claimants and insurers from negotiating higher rates that account for specific factors like vehicle type, body composition, labor expertise, and geographic location, and it prohibits insurers from refusing to negotiate based solely on their ability to secure lower prices from other repair facilities.

Business and Industry

https://legislature.vermont.gov/bill/status/2026/H.384