Setting state-regulated prices for auto repairs in Massachusetts would undo the progress made on auto insurance reform in the state, the American Insurance Association said today.

Testifying at a public hearing of the Special Commission on Labor Rates in Boston, AIA Vice President for the Northeastern Region John Murphy said the group does not want the state to backtrack from its commitment to allowing competition in the market, and that such competition would ensure greater efficiency and quality in auto body repairs.

"Auto insurers can and do negotiate favorable labor rates for repairs," he said. "Those efforts have a positive impact on repair costs which, in turn, have a positive impact on containing overall insurance costs."

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