Vermont Department of Financial Regulation (DFR) has released a survey for Vermont Autobody Repair Shops focused on the fairness and reasonableness of auto insurance business practices. 

The survey is part of a study that DFR is required to complete per a Vermont law passed in 2023 that requires the department to investigate and make recommendations regarding auto insurance in the state. A final report is due to the House Committee on Commerce and Economic Development and the Senate Committees on Finance and Judiciary by Nov. 15. 

However, Director of Insurance Regulation Mary Block said during a September meeting that the department will likely ask for an extension until February 2025. She said the department is still in the fact-gathering and analysis mode. 

A website for the survey says that responses will be confidential. DFR said via email that a deadline for completing the survey has not been set. 

“Your completion of the entire survey will help us to obtain the most comprehensive data possible,” the website says. “However, if you are uncomfortable or unable to complete a particular question, it can be skipped, and you can continue to complete the remaining survey questions.” 

Overall, the survey has 111 questions. It starts with questions about the repair shop such as how long the business has been operating, what type of services are offered, how many employees the shop has, and the typical wait time before a car can be scheduled in the shop. 

The survey also asks how many hours staff are trained and where they receive training. 

Questions about insurance practices include but are not limited to: 

• • What percentage of the time do customers come to the shop with an insurance appraisal already completed?
  • What percentage of the time do customers expect you to provide the estimate for their insurance company?
  • When an insurance company is involved what percentage of the time are they sending an appraiser or adjuster to your shop to write an appraisal?
  • When an insurance company is involved what percentage of the time do they ask you to send pictures or videos of the damage for them to estimate the damage claim?
  • If you are compensated by the insurer, does it vary by the insurer?
  • Which of the following do you use to prepare your estimates?
  • Do insurance companies provide you with any written procedures or documentation necessary for repair work performed by your shop?
  • How often is a supplement required?
  • If the supplement causes a delay in repair, how long is the average delay caused?
  • If some insurers require more supplements than others, please identify those insurers.
  • Are you a preferred shop for any insurer?
  • Do labor rates differ between insurers for which you are a preferred shop versus if you were not a preferred shop for that insurance company?
  • If the insurance company offers a lower labor rate than you traditionally charge, do you require the customer to pay the difference?
  • Do you use aftermarket parts for autobody repairs?
  • Do insurers allow for you to use your professional discretion in whether an aftermarket part or Original Equipment Manufacturer (OEM) part is most appropriate for a given repair?
  • Do insurers place limitations on the use of OEM parts?
  • Do any insurers refuse to pay for OEM parts?
  • Do any insurers refuse to pay for modifications/fit work needed for aftermarket parts?
  • When charging for parts, do you use a percentage of the part price to calculate your markup on the part?

DFR has held two meetings on the issue, one for consumers in September and one for autobody shops in October. 

The new law requires DFR to focus on whether a minimum labor reimbursement should be established in the state. DFR is also required to study: 

• • If auto insurance carrier and independent appraiser practices equally consider the interests of insurance companies, auto body shops, and consumers;
  • How much insurance carriers control or influence auto body shop repair work chosen by the consumer and how that should affect carrier liability, particularly regarding the quality and safety of repairs;
  • Use of direct repair programs (DRPs) and their impact on the automobile repair industry and consumers;
  • Disclosures made to consumers and whether they’re adequately informed of potential financial exposure under a policy including in regard to any labor rate, material rate, hour, and differentials for loss of use;
  • Whether insurance regulation should be updated to match market changes or business practices that might impede the prompt, fair, and equitable settlement of claims in which liability has become reasonably clear;
  • Whether carrier valuation methods and betterment practices used are legitimate and fair to consumers;
  • Potential cost savings from using aftermarket or recycled parts in repairs and if aftermarket parts should be certified, if and to what extent a carrier should be liable for incidental costs related to the use of aftermarket or recycled parts, and the notification that should be provided to consumers about the use of aftermarket or recycled parts;
  • Number and type of complaints received by the Department of Financial Regulation and the Consumer Assistance Program about automobile insurance policies and auto body repair work;
  • If additional regulatory measures are necessary to prevent anticompetitive behavior and ensure the interests and protection of all parties, especially consumers; and
  • How auto repair costs contribute to the price and availability of automobile insurance and if a minimum labor rate could impact the price and availability.

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