Massachusetts board gives no recommendation on auto body labor rates
A report recently shared by the Massachusetts Auto Body Labor Rate Advisory Board offers no conclusive recommendation on how to eliminate long-fought friction between collision repair shops and insurance companies regarding labor rate reimbursement in the state.
The state’s labor rate of $40 — the lowest in the U.S. — hasn’t increased since 1988.
The board compiled data from surveys sent to auto insurers and shops and collected input from both industries over the course of several meetings last year, according to the report.
Insurer surveys were sent to all auto insurers having 1% or more market share of policies written in Massachusetts, which is 17. Responses were received from 16.
“The insurer survey asked for a given insurer’s prevailing labor rate for each of five categories of collision repairs: body repairs, refinishing repairs, mechanical repairs, structural repairs, and frame repairs,” the report states. “The labor rate for any given category of repairs varies
by insurer.
“For body repairs, the survey indicated that the labor rate paid by the 16 insurers ranged from $43 to $55. For mechanical repairs, the survey indicated that the labor rate paid by the 16 insurers ranged from $45 to $80.”
According to the report, for body repairs, the statewide average, median, and average excluding outliers of labor rates charged by auto body shops are $68, $65, and $65.
For mechanical repairs, the statewide average (mean), median, and average (mean) excluding outliers of labor rates charged by auto body shops, based on the survey data, for mechanical repairs are $108, $105, and $104, respectively.
The data is based on survey responses from 476 auto body shops, representing 32% of the shops that were sent surveys.
At a board meeting held on Nov. 24, 2025, members discussed written recommendations.
“At the conclusion of the discussion, which showed that there was no agreement on a recommendation amongst board members, it was decided that the Advisory Board would not adopt a board recommendation but would attach to this report any recommendation submitted by any individual Advisory Board member who wished to provide one,” the report states.
Recommendations were submitted by nine of the 14 members, including a joint recommendation from three members. Similar action was taken in 2022.
In a Feb. 28 op-ed, Massachusetts Auto Body Association (MABA) Executive Director Evangelos “Lucky” Papageorg argues that the argument over labor rates leaves proper vehicle safety at risk. MABA was formerly called the Alliance of Automotive Service Providers of Massachusetts (AASP/MA).
“Today’s vehicles are vastly more complex than ever,” he wrote. “Advanced driver assistance systems, electric vehicles, and new lightweight materials require specialized tools and ongoing technician training. These are not optional upgrades. They’re essential to ensuring that a vehicle performs as designed in the next crash.
“Yet insurers in Massachusetts reimburse a weighted average of about $49 per hour for collision repair labor, a rate that has barely moved in decades, despite dramatic increases in operating costs.”
As a result, Papageorg added that the collision repair ecosystem is increasingly strained.
“Shops struggle to invest in training and equipment,” he wrote. “Experienced technicians leave the state or the industry altogether for higher-paying trades. Young people are increasingly opting out of collision repair careers… Massachusetts has lost more than 100 registered auto body shops since 2008. With many owners nearing retirement, there is often no viable succession plan under current conditions.
“Some worry that fairer insurance reimbursement would lead to higher premiums. The Advisory Board report did not reach that conclusion. In fact, it found no evidentiary basis to claim that updating reimbursement rates would trigger major insurance increases. It did find that failing to align reimbursement with economic reality risks compromising repair quality and public safety.”
Papageorg concludes that the current system makes it “extremely difficult — some might say impossible — to stay current with today’s technology and equipment, and train technicians to OEM specs.”
“That has far too dramatic of an impact on safe repairs, putting everyone on the road at risk,” he wrote.
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