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Read. Follow. Verify.Vermont establishes minimum hourly labor reimbursement rates for auto insurance claims
Last action · February 26, 2025: Read first time and referred to the Committee on Commerce and Economic DevelopmentSponsor: Kevin Christie
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What This Bill Would Do
The Commissioner of Financial Regulation must conduct a market survey of auto repair and insurance labor rates, establish a minimum hourly insurance reimbursement rate for first- and third-party auto claims, and create an annual adjustment formula tied to the , effective for all claims filed on or after January 1, 2026.
Vehicle owners and repair shops will operate under a state-mandated minimum labor rate for insurance payouts starting in 2026, while retaining the right to negotiate higher rates based on specialized vehicle requirements.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
automobile repair facilities
Subject to market surveys and impacted by mandated minimum hourly labor reimbursement rates for insurance claims.
automobile insurance companies
Required to pay at least the established minimum hourly reimbursement rate for first- and third-party claims and restricted in negotiation practices.
claimants
Garner a state-mandated minimum labor rate for automobile insurance claims and retain the ability to negotiate higher rates.
Key Facts
- The Commissioner of Financial Regulation must survey hourly labor rates charged by Vermont auto repair facilities and rates paid by insurers.
- The Commissioner must compare Vermont rates with average rates in other New England states and relevant national data.
- The Commissioner must establish a fair and reasonable minimum hourly insurance reimbursement rate for first- and third-party auto claims based on competitive prices.
- A formula must be established to annually adjust the minimum labor rate using the Consumer Price Index.
Show all 7 facts
- The minimum reimbursement rate applies to all insurance claims filed on or after January 1, 2026.
- Claimants and insurers remain free to negotiate a higher labor rate accounting for vehicle type, materials, expertise, equipment, and geography.
- Insurers are prohibited from refusing to negotiate based solely on their ability to secure a lower price from another licensed repair facility.
Frequently Asked Questions
Can a claimant still negotiate a higher labor rate with their insurer?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
1 action- Feb 26, 2025HouseIntroducedRead first time and referred to the Committee on Commerce and Economic Development
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
legislature.vermont.gov
Analysis Score
0–100- Significance55How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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