Auto Body Repair Labor Rate Survey Regulations
Over the past several years, the Department of Insurance has worked on the adoption of the Auto Body Repair Labor Rate Survey regulations. The regulations went through a formal public review process required by state law, which included taking and responding to public input on the regulations at public workshops, public hearings, and through written public comments. The regulations were drafted and revised with input from consumers, insurers, and repair shops.
The Office of Administrative Law (OAL), which independently reviews all new regulations, approved the Commissioner's regulation November 30, 2016. The regulation goes into effect by operation of law on January 1, 2017. However, these newly adopted Labor Rate Survey Regulations are part of the Fair Claims Settlement Practices Regulations, which contain a delayed compliance date in order to give insurers, who choose to use these voluntary regulations, additional time to comply. The earliest compliance date is February 28, 2017.
In order to assist automobile insurers who wish to conduct a Standardized Labor Rate Survey, the Department obtained a list of all automotive repair dealers (repair shops) authorized by the Bureau of Automotive Repair (BAR) to perform collision repairs. The Department edited this list to remove duplicative repair shops and repair shops that were known not to perform collision repairs (such as Smog Only Test Stations, etc). Note that, while the Department has made every effort to make the list as concise as possible, there may still be repair shops on this list that do not perform collision repairs or that are not otherwise a "qualified auto body repair shop." The Department is providing this List of Automotive Repair Shops to assist insurers and to avoid multiple requests to the BAR by multiple insurers.
While the Department is not requiring insurers to use this list, an insurer's use of this list will constitute compliance with the requirement in the Fair Claims Settlement Practices Regulations subdivision 2695.81(d) to survey all auto body repair shops. This list will be updated annually in January of each year. An insurer may use this list for any surveys initiated during that calendar year.
An insurer may also contact the BAR directly to obtain a listing of all automotive repair dealers, but such list will not have undergone editing to remove duplicative repair shops and repair shops that were known not to perform collision repairs.
As the Department has more information to share on this topic, this page will be updated.