(for Part 2, click here)
National Glass Association Auto Glass Division vice president, Leo Cyr,
states that there is simply no excuse for anyone filing an insurance claim on undamaged windshields. At the same time, insurance companies do recognize that a broken windshield is a real hazard and can pose a threat to occupants of a vehicle.
Simply stated, as with any windshield repair, there are appropriate times and inappropriate times to replace a part. In either event, Mr. Cyr states that only NGA-certified technicians using quality parts and materials should install a new windshield. Because of the large number of fraud schemes aimed at needlessly filing claims for windshield replacements, consumers need to be aware of when a windshield can be honestly replaced. Consumers also need to be able to ask the right questions and safeguard their own information.
Law enforcement across the nation agrees with Mr. Cyr and is cracking down on broken windshield replacement scams in Gilbert and surrounding Higley and Queen Creek. The good news is that unscrupulous harvesters and repair shops owners are being prosecuted, fined, and sent to prison. The bad news for drivers who become victims is that they, too, can be prosecuted, fined, and sent to prison for their participation in stealing from insurance companies and their policyholders.
Not driving your own car does not necessarily make you immune to being approached. A slightly different scheme on the replacement scam involves rental cars being returned. A renter returns his car only to be told that a scratch, crack or rock chip found on the windshield is going to require a windshield replacement paid for by the insurance bought in the rental agreement or the driver’s personal insurance. Either way, insurance account numbers are exchanged and the policyholder and company are charged hundreds for a new windshield.
One recent, well-known case in Billings, Montana involved an owner of a nationally recognized car rental franchise just last year. Evidence shows that most of the vehicles involved showed no signs of windshield replacement but a few showed chip repairs totaling about $25.00. One vehicle was involved in 3 windshield replacement claims and the windshield was reported to have shown no signs of any repair or replacement. Following the widely-publicized trial, the prosecuting assistant U.S. Attorney said, in his sentencing memorandum, that the case involved 250 victims, the theft of $436,692 and deserves harsh punishment. The owner/manager was caught only because he bragged to friends he had found a way to commit a perfect, repeatable crime. Beware when you get your windshield replacement in Gilbert because the same thing could happen here.
A Spokane, Washington company, owned by a husband and wife was convicted of generating more than 1,200 fraudulent claims costing insurance holders over $695,000. Another in Los Angeles holds the record at over $14 million in fraudulently received payments after which the company filed bankruptcy. Although in both cases the court ordered restitution to be paid (from the bankrupted companies) guess who really gets left holding that bag on the loss?
How serious is the issue and does it really affect consumers directly?
The problem is huge. The amount of money taken out of the public’s collective pockets is staggering. According to an auto glass industry estimate the expense of illegal windshield insurance claims costs consumers more than $425 per year on the annual premium for every car in America, each year, for the life of the car! The amount of extra money paid on each insurance premium is almost enough to replace every windshield in America, every year, twice! That money comes right out of everyone’s wallets.
What can a person do to protect himself or herself?
How can a consumer know how to tell the difference in legal and illegal services and make sure that the windshield replacement is both appropriate and correctly done? Fairly simple. For your good luck, here are seven basic rules, or questions:
Rule #1 Think.
What are you being asked to do and by whom?
Rule #2 Be reasonable.
- Is the integrity of the glass compromised?
- Is the damage in the driver’s line of sight?
- Is the damage cosmetic or functional?
- If it is not worth $250 to $300 dollars to you, it probably won’t be to your insurance company either.
- Would you claim repairs for a similar paint chip or door ding?
Rule #3 Take charge of the situation.
Did someone approach you, or did you approach the glass repair company in accord with your insurance agent?
Rule #4 Guard your money and your accounts.
- Would you give a stranger contacting you access to your bank, cash, or credit accounts by providing them with the number(s)?
- Why would you give them access to the cash behind your insurance policy number? Don’t do it!
Rule #5 Is the person doing the work, at a legitimate place of business, skilled and NGA-certified to do such repairs?
Rule #6 Were you offered an incentive? An incentive is, by no means, an indication of fraudulent activity. Most every business offers items on sale, coupons, discounts or other incentives to attract your business. The question is, is the value of the incentive unreasonable? Is the total value more than what your deductible would be? Is it more than what the windshield would be? (See Rule #1 and Rule #2)
Rule #7 Are you paying a reasonable price for actual services rendered at a known location?
Beware of invoices carrying an address other than where the repairs are made, especially rural addresses. Rural companies are allowed to charge insurance companies more for parts and labor than companies located in densely populated and competitive areas.
So, what’s wrong with it? False windshield replacement claims is a form of insurance fraud. Insurance fraud is just another form of fraud. Fraud is a felony crime. All parties involved can be charged, tried, and convicted. Be informed and alert. Ignorance of the facts is not an excuse to assist in costing all of us millions of dollars every year.
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