Bill H.384, introduced by Representative Christie of Hartford, aims to establish minimum reimbursement rates for labor related to automobile insurance claims in Vermont. The bill mandates the Commissioner of Financial Regulation to conduct a market survey of hourly labor rates charged by automobile repair facilities in the state and to investigate the rates paid by insurance companies for repair work. The Commissioner will compare these rates with averages from other New England states and may consider additional national data. Based on this assessment, the Commissioner will set a minimum hourly reimbursement rate for labor applicable to both first- and third-party automobile insurance claims, which will be adjusted annually according to the Consumer Price Index.

The minimum reimbursement rate established will apply to all insurance claims filed on or after January 1, 2026. The bill also allows for negotiation between claimants and insurers for higher labor rates, taking into account various factors such as vehicle type and geographic location of the repair shop. Insurers are prohibited from refusing to negotiate based solely on their ability to secure a lower price from another repair facility. The act is set to take effect upon passage.