Massachusetts lawmakers have passed the Fiscal Year 2027 (FY27) Budget, which includes an auto body labor rate provision (Section 78) that could have massive implications for Massachusetts residents. If signed into law as part of the budget, Section 78 could increase auto insurance rates and repair costs, while rewarding auto repair shops for their inefficiency.
This provision of the state budget could create a mandatory, minimum auto body labor rate, with no constraints, something no other state in the country currently has. It could increase the cost of auto repairs and could lead to higher auto insurance rates across the state.
According to industry estimates, for every $10 in additional labor rate, it could cost policyholders approximately $38 per vehicle. On top of that, Massachusetts auto repair shops notably take significantly longer to complete repairs than their counterparts in other states, which already makes the repair process more expensive. Mandating a labor rate could reward inefficiency at the cost of MA residents.
We need to protect everyday residents and families! Tell the Governor that a mandatory auto body labor rate is bad for Massachusetts and this provision must be struck out from the state budget.
Dear Governor Healey,
As a constituent and Massachusetts driver, I'm writing today to urge you to strike down the auto body labor rate provision (Section 78) from the FY 2027 state budget. While perhaps well-intended, this provision would have negative implications for Bay Staters.
If signed into law as part of the budget, this could create a mandatory, minimum auto body labor rate, something that no other state in the country has. The mandate could increase auto repair costs and may negatively impact insurance rates, and I can't afford to pay more for my car insurance!
A government mandated labor rate is unprecedented and unnecessary. Massachusetts is already among the most expensive in the nation for vehicle repairs. Increasing costs with government price fixing will further harm the Commonwealth's affordability and competitiveness.
Please strike down Section 78 from the FY 2027 state budget and help keep insurance rates and auto repair costs down in our state. Thank you for your time and attention.
Sincerely,
