Labor Rate Board Was Step One – Now Lawmakers Must Protect Safe Repairs

by Sean Preston, Managing Attorney, Coverall Law

When you pay for car insurance, you expect peace of mind. You pay your bill every month so that if your car is in a crash, the insurance company will cover the cost to fix it. More than that, you trust the repair will be done the right way – safe, proper and enduring.

But in Massachusetts, the truth is different. Insurance companies often look for ways to spend less money, even if it means pushing for repairs that cut corners. They use gaps in our state’s rules to save themselves money, while leaving drivers with repairs that may not meet the car manufacturer’s safety standards.

Recently, lawmakers took a small step forward. At the end of 2024, Massachusetts created a new Auto Body Labor Rate Advisory Board (ABLRAB) to study and recommend fair pay for auto body work. This was a victory for repair shops that have struggled for years. But this step only fixes one piece of the puzzle. It does not stop insurers from pressuring shops to use cheaper parts or skip important repair steps.

That’s why we need the next step. Massachusetts must make sure insurers stop interfering with the work of licensed repair professionals – so drivers can be confident their cars are repaired safely.

Legislative Context – Small Steps, Big Gaps

A few years ago, repair shops and consumer advocates tried to pass a new law that would set fair pay for auto body work. That effort failed in 2022, and many shops were left frustrated.

But in 2024, they won a smaller fight. Lawmakers agreed to create the ABLRAB. This Board’s job is simple: study how much auto body shops should be paid for their work and make recommendations. It was an important win after years of being ignored.

Still, the Board can only study and suggest. It cannot stop insurance companies from dictating to shops how to fix cars, what parts to use or which steps to skip. That means insurers still have the power to control repairs in ways that put drivers at risk.

The ABLRAB is a great first step, but Massachusetts drivers will need more than a study. They need laws that make sure insurance companies cannot interfere with safe repairs.

The Collision Repair Landscape in Massachusetts

Every day in Massachusetts, insurance companies push repair shops to do less than what’s really needed. Shops are told not to follow all of the car maker’s repair instructions. They are told to use cheaper, imitation parts instead of genuine ones. And they are pushed to join “programs” where the shop agrees to work for lower pay if the insurer sends them customers.

These pressures hurt everyone. Repair shops are stuck in the middle. If they follow the insurer’s orders, they may skip steps that keep a car safe. If they refuse, they risk not getting paid fairly – or losing future business from the insurer. In the end, the shop carries the blame if something goes wrong, even when it was the insurer who demanded the cheaper repair.

For drivers, the danger is hidden. A car may look fixed, but if the right parts were not used or key safety steps were skipped, the next crash could be much worse. Drivers think all repairs are done the same way –the safe way. But in reality, the quality of the repair depends on how much the insurer is willing to pay.

Consumer Deception – The Illusion of a Safe Repair

Most drivers in Massachusetts believe their cars are fixed the right way after a crash. They assume there’s only one safe way to repair a car, and that every shop – and every insurer – follows it. Sadly, that’s not true.

Under Massachusetts law, insurance companies are allowed to push for cheaper, non-original parts. 211 CMR 133.04 says appraisers must use rebuilt, aftermarket or used parts unless the car’s safety could be harmed or certain other conditions are met. This gives insurers the power to replace genuine factory parts with copies that may not fit and will not perform in the same way. When asked, almost every driver wants original parts put back on their car. But insurers rarely ask – they just write the estimate using imitation parts.

Insurers also push drivers toward certain “program shops.” Massachusetts law does give drivers the right to choose their own repair shop. In fact, 212 CMR 2.04 makes it illegal for insurers or their appraisers to steer someone to or away from a specific shop. But in practice, many drivers still feel pressured to use the shop the insurer recommends, thinking it will be easier. They don’t realize that these shops often agree to lower payments from insurers, which can mean cutting corners on the repair.

The truth is, insurers are making key repair decisions behind the scenes – decisions that drivers assume are being made by licensed repair professionals. That’s why so many consumers are being fooled. The car may look fine when it leaves the shop, but hidden safety systems may not work the way the manufacturer intended.

Massachusetts Law – What Exists, What’s Missing

Massachusetts does have rules that are supposed to protect drivers. For example:

•  211 CMR 123.07 says insurance companies must give drivers a disclosure form explaining their choices. It must tell them they can have their car fixed at any shop, not just a program shop. It must also explain that if they pick a shop on the insurer’s referral list, the insurer has to guarantee the quality of the repair.

•  212 CMR 2.04 makes it clear that insurers and appraisers cannot steer adriver toward or away from a particular shop.

•  211 CMR 133.04 sets standards for how parts are chosen. It says appraisers must use rebuilt, aftermarket or used parts unless safety would be harmed or no suitable parts can be found. If the parts are unfit, the insurer must pay to replace them.

On paper, these rules sound like they protect drivers. But in reality, they leave big holes. Insurers can still use the “like kind and quality” rule to force cheaper, imitation parts, even if drivers would prefer genuine factory parts. Disclosure forms are given to drivers, but many don’t fully understand what they mean – and no one explains that insurers may be refusing to pay for important manufacturer-required safety steps.

The biggest gap of all is accountability. If a repair is done wrong and puts lives at risk, the shop is usually the one held responsible – not the insurer who dictated the repair. That means insurers get to call the shots without sharing the risk.

Massachusetts has most of the right words in its laws but lacks any real protections in practice. Drivers are left believing they are safe, when insurers are still in the repair bay making the real decisions.

The Risks – Why This Matters Now

A car can look perfect after a crash repair – shiny paint, smooth panels and no dents. But what you can’t see may be the most important part. Hidden inside your car are safety systems like air bags, sensors and strong metals that protect you and your family in another crash. If these aren’t repaired the right way, lives can be put in danger.

In Texas, a tragic case showed what can happen when repairs are not done to the car maker’s instructions. A couple was trapped in their car during a fire after improper repairs, and they were badly burned. A jury awarded them $42 million. That case did not happen in Massachusetts, but it is a warning sign of what could happen here.

Here in Massachusetts, we already know the risks are real. Shops report that insurers deny payment for safety checks that manufacturers require. Insurers also push shops to use cheaper parts, even when those parts don’t match the quality of the originals. These shortcuts may save the insurer money today, but they put drivers and passengers in danger tomorrow.

The scary part is most drivers have no idea. They trust their car is safe because it looks fixed. But without stronger laws, the reality is that insurers are still cutting corners behind the scenes – and those hidden dangers could show up in the next crash.

Legislative Call to Action – “Get Insurers Out of the Repair Bay”

The ABLRAB was an important first step. It showed that lawmakers in Massachusetts understand auto repair shops are being squeezed by insurers who don’t want to pay fair rates. But safe repairs are about more than money. They are about protecting lives.

Now it is time for the next step. Lawmakers must pass stronger laws that:

•  Stop insurer interference. Licensed repair shops should follow the car manufacturer’s instructions, not the insurer’s shortcuts.

•  Make insurers share the risk. If an insurer denies a safe procedure and the repair later fails, the insurer should be held responsible – not just the shop.

•  Give drivers the truth. When insurers refuse to pay for original parts or safety steps, drivers should be told directly so they can make an informed choice.

Massachusetts drivers deserve better than hidden dangers in their cars. They deserve the repairs they thought they were paying for when they bought insurance. It’s time for lawmakers to step in and get insurers out of the repair bay.

Conclusion – Protecting the Public

Car insurance is supposed to give peace of mind. Drivers pay their bills and expect safe repairs when accidents happen. But in Massachusetts, insurers often put their own profits first. They push shops to cut corners, use cheap parts or skip important steps – leaving drivers at risk without even knowing it.

The ABLRAB was a good beginning, but it cannot be the end. Lawmakers need to act now to make sure insurers stop interfering with safe repairs. Every driver in Massachusetts deserves the same promise: that when their car is fixed, it is fixed the right way.

This is not just about shops or insurers – it is about protecting families on our roads. Together, repair professionals, lawmakers and consumers can make sure safety comes first.

At Coverall Law, we are here to stand with shops and drivers for a safer Massachusetts. We help expose unfair practices and fight for safe, proper repairs. With stronger laws and a united voice, Massachusetts can keep insurers out of the repair bay and keep the Commonwealth safe.

Want more? Check out the October 2025 issue of New England Automotive Report!