Press Releases

Contact: Leo Cyr, Vice President of Auto Glass
Email: leo@glass.org

ALLEGATION OF WINDSHIELD 'SCAMS' IS NOT THE WHOLE STORY
THE NATIONAL GLASS ASSOCIATION RESPONDS TO FARMERS INSURANCE

WASHINGTON, DC, August 20, 2004—The National Glass Association (NGA) is concerned that an article entitled "Farmers Insurance Cautions Vehicle Owners on Windshield Replacement Scams" may confuse consumers and, possibly, cause people to delay or cancel needed repair or replacement of damaged windshields. The article was written by Doug Ashbridge, Director of Special Investigations for the Farmers Insurance Group, and appeared on the Insurance Journal website on August 10, 2004. The article is included at the end of this release.

According to Leo Cyr, vice president of NGA's Auto Glass Division, "The NGA condemns any and all forms of fraud - insurance or otherwise. There can be no excuse for filing an insurance claim if the windshield is undamaged. By the same token, windshields are vital automotive safety components. To operate a vehicle with a damaged windshield could adversely affect proper deployment of some passenger side airbags, or, compromise the structural integrity and crush resistance of virtually all vehicles."

The NGA recommends all auto glass service be performed by a trained, NGA certified professional technician. "There should not be any confusion on this point," says Cyr. "Replacement windshields must be installed properly to function as designed. If you are in doubt, ask your local auto glass service provider if they employ NGA certified technicians."

"In addition, many states have enacted laws to protect the consumer's right to choose their own auto service provider," says Cyr. Some of the 'Free Choice' laws came about as a result of concern that some insurance companies were directing policyholders to the least costly service provider for service. According to Cyr, "The cheapest auto glass service may not be consistent with the quality of materials and craftsmanship that are desirable when installing automotive safety-related parts."

"Sometimes people forget there is a major difference between buying a commodity, like a box of paperclips, and contracting for a skill-critical service like windshield replacement," says Cyr. "I'll buy the cheapest paperclips in a heartbeat but our family compares prices only after we ensure the materials and craftsmanship are of the highest quality."

"The last thing the NGA wishes to do is to trivialize Mr. Ashbridge's concern for fraud," concludes Cyr. "We are consumers too. We pay like everyone else when fraud causes insurance premiums to rise. That is precisely why the NGA, its members and allied organizations have invested 20 years in developing training, certification, business accreditation, installation standards and practitioner licensure programs to help consumers identify the true professionals in our industry. We would welcome any and all insurance company participation in our programs. In the final analysis, our mutual responsibility is to the customers we serve.

Founded in 1948, the National Glass Association is the largest trade association representing the entire flat glass industry. Based in McLean, VA, NGA offers certification, education and training, and serves the industry with the leading trade publications-Glass Magazine, Window & Door, and AutoGlass. NGA currently hosts GlassBuild America: The Glass, Window & Door Expo and the National Auto Glass Conference & EXPO.

Farmers Insurance Cautions Vehicle Owners on Windshield Replacement Scams
Driving with a cracked or broken windshield puts both drivers and their passengers at risk.

In fact, insurance companies in some states are required by law to waive the deductible for damaged or broken windshields in an effort to encourage vehicle owners to make the appropriate repairs.

But according to Doug Ashbridge, director of Special Investigations for Farmers Insurance Group, some glass companies are using that loophole to convince consumers they can have new windshields for free, since they are fully covered by their insurance company. While the rationale appears logical to the consumer, the practice is illegal.

"Replacing a windshield that is not damaged, and then charging the insurance company on the grounds that it is damaged, is considered insurance fraud and is a growing problem nationwide," Ashbridge said.

In many cases, glass companies will rent parking lot space from auto repair facilities, convenience stores, gas stations or car washes, and prey upon those business' customers.

The glass company representatives - also called "glass claims harvesters" - will reportedly approach vehicle owners, inspect their windshields and offer to fix or replace them for free whether or not the glass is damaged.

Once the vehicle owner agrees to the deal, the harvester will subcontract the windshield replacement with another, less expensive glass company and turn a profit from the consumer's insurance claim.

Some of the more aggressive harvesters will even offer vehicle owners incentives, such as free car washes, free steaks or cash to replace windshields that are not in need of repair.

Some harvesters, once they obtain the vehicle owner's policy information, will impersonate the insured and submit multiple glass claims. Others will repair windshields and then claim them as replacements, or claim more repairs than were actually done.

Ashbridge pointed out that the "free" windshield could ultimately cost vehicle owners their preferred status rating with their insurance company, resulting in rate increases, and possibly more severe penalties.

"Vehicle owners who agree to unnecessary windshield repairs or replacements from these types of glass company representatives could end up facing criminal charges," Ashbridge warned. "Most glass companies are honest, so it's difficult for consumers to know if the offers are dishonest. They should contact their insurance agent before giving glass companies their policy information and letting them submit glass claims."

According to Ashbridge, industry studies have shown that property casualty insurance fraud costs consumers about $20 billion each year. In some states, it adds as much as $240 per year to every auto policy.

"Glass fraud, similar to other forms of insurance fraud, is probably present in as many as 10 percent of claims filed," Ashbridge said. "Farmers Special Investigations unit works with agents, claims representatives and our glass vendors to recognize, report and take appropriate action against all forms of insurance fraud."

Source: Insurance Journal Web site, August 10, 2004
www.insurancejournal.com/news/national/2004/08/10/44850.htm