BILL AS INTRODUCED H.384
2025 Page 1 of 2
VT LEG #380736 v.1
H.384 1
Introduced by Representative Christie of Hartford 2
Referred to Committee on 3
Date: 4
Subject: Insurance; automobile; minimum reimbursement rates; labor 5
Statement of purpose of bill as introduced: This bill proposes to establish 6
minimum reimbursement rates for labor applicable to automobile insurance 7
claims. 8
An act relating to minimum reimbursement rates for labor related to 9
automobile insurance claims 10
It is hereby enacted by the General Assembly of the State of Vermont: 11
Sec. 1. 8 V.S.A. § 4212 is added to read: 12
§ 4212. MINIMUM REIMBURSEMENT RATES FOR LABOR 13
(a) The Commissioner of Financial Regulation shall conduct a market 14
survey of the hourly labor rates charged by automobile repair facilities in 15
Vermont. In addition, the Commissioner shall investigate the labor rates paid 16
by automobile insurance companies for repair work in Vermont. The 17
Commissioner shall compare these rates with the average rates in other New 18
England states and may review any additional data the Commissioner deems 19
relevant to such rates, such as national data. 20 BILL AS INTRODUCED H.384
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VT LEG #380736 v.1
(b) After assessing the data collected under subsection (a) of this section, 1
the Commissioner shall establish a minimum hourly insurance reimbursement 2
rate for labor that applies to both first- and third-party automobile insurance 3
claims. The rate shall be a fair and reasonable amount that takes into 4
consideration prevailing competitive prices. In addition, the Commissioner 5
shall establish a formula for annually adjusting the minimum labor rate based 6
on the Consumer Price Index published by the U.S. Bureau of Labor and 7
Statistics. 8
(c) The minimum reimbursement rate established under subsection (b) of 9
this section shall apply to all insurance claims filed on or after January 1, 2026. 10
(d) Nothing in this section shall be construed to prohibit a claimant and an 11
insurer from negotiating a higher labor rate that takes into consideration factors 12
such as vehicle type; body composition materials; labor type; required labor 13
expertise, training, and certifications; equipment; and geographic area of the 14
chosen repair shop. An insurer shall not refuse to negotiate on the basis of its 15
ability to obtain a price that it can secure from another licensed repair facility 16
conveniently located to the claimant. 17
Sec. 2. EFFECTIVE DATE 18
This act shall take effect on passage. 19