Can an insurance company change from the Rhode Island labor rate to the Massachusetts labor rate on an original estimate when they come out on my supplement in Massachusetts?

While I’m no longer a claims adjuster, I believe the insurer can pay a lesser labor rate because if they elect to repair rather than replace, they owe the “cost of repair,” which would be what it’s costing to get the vehicle repaired – nothing more, nothing less.

Conversely, if the insurer wrote their original estimate at a rate lower than what it actually cost to obtain a proper and thorough repair, they would owe the higher rate as long as the rates are reasonable and competitive in the marketplace and based upon the level of service and quality being provided.