Press Release
Boston, MA, Feb 2, 2026 — A newly released report from the Commonwealth’s Auto Body Labor Rate Advisory Board warns that outdated insurance reimbursement rates—not shop labor rates—are creating a ripple effect that threatens the safety of Massachusetts motorists and everyone sharing the road.
The report found that a majority of the Board agreed insurance reimbursement rates for auto body labor must increase to reflect economic reality. The findings also make clear that the Board did not reach any evidentiary conclusion that fairer reimbursement rates would automatically result in higher auto insurance premiums.
“This is not about what auto body shops charge—it’s about what insurance companies are willing to reimburse,” said Lucky Papageorg, executive director of the Massachusetts Auto Body Association (MABA). “When reimbursement rates fall far below the real cost of safe, modern repairs, the consequences show up on the road.”
According to the report, insurers currently reimburse a weighted average of approximately $49 per hour for auto body labor. That figure falls far below the actual cost of operating a modern repair facility in Massachusetts—one of the most expensive states in the country. Never mind how it compares mechanics who don’t do collision repair and are getting paid anywhere from $125 to nearly $300/hour. That pay gap limits a collision shops’ ability to invest in ongoing technician training, advanced equipment, and manufacturer-required repair procedures.
“Today’s vehicles are more complex than ever,” Papageorg said. “Advanced driver assistance systems, electric vehicles, and new materials all require specialized training and precision. When shops can’t afford that training, vehicles may be repaired improperly, develop ongoing problems, or worse, become a hazard on the road. That’s a safety issue—not a business talking point.”
“If we want vehicles repaired to manufacturer standards, a skilled technician workforce, and safer roads for everyone,” Papageorg said, “insurance reimbursement rates must reflect economic reality. Safe repairs are not optional.”
About the Massachusetts Auto Body Association (MABA):
The Massachusetts Auto Body Association (MABA) represents independent auto body repair facilities across the Commonwealth. MABA advocates for consumer safety, fair insurance practices, and a well-trained automotive repair workforce. For more information, visit http://www.maba.org
