In the previous issue we introduced you to the confusing world of windshield replacement scams. (To review the previous article, click here.) In this article we will show you some of the typical ways scammers approach drivers in an attempt to make money off your insurance policy, and subsequently, from the increase in your premiums. Also discussed is what has been happening to some of the people who have run such scams.
In Part 3, the next article, we will discuss incentives, both honest and dishonest ones, the impact the fraudulent windshield replacement activities have on our overall--and your personal--economy and how you can spot and safeguard yourself when you are presented with becoming a participant in such scams.
There are more ways to perform windshield replacement scams than probably any one of us could think of. Windshield replacement scams are aimed at defrauding insurance companies and have involved both large and small glass replacement or repair, and also car rental companies.
It may seem difficult to tell the difference, sometimes, between honest companies offering incentives as sales promotion or discounts, and dishonest ones offering incentives as a form of enticement or bribes to get the unsuspecting motorist personally involved in these insurance fraud schemes. Windshield replacement scams can be rather simple to spot but require a little thought and judgment on the part of the consumer.
The key to avoid becoming a victim of this type of fraud is in awareness of types of scams being done, the ramifications of being involved in a scam operation, and knowing how to clearly see the difference between honest offers and dishonest ones.
Here is a typical scenario any of us can see. A driver drives into an automated car wash to clean up the car. Someone there, while the driver is waiting his or her turn, approaches and offers to fix a rock chip in the windshield. The person, often referred to as a windshield harvester, explains that he can repair the chip at no cost to the driver because the state regulation on insuring windshields allows for auto glass repair or windshield replacement with zero dollar deductible; therefore, the repairs can be done for free. The scammer/harvester then asks the driver for his insurance policy number and information for billing.
As an incentive for the driver to innocently participate, he or she may be offered free dinners for a year at a well-known local restaurant, a freezer full of steaks, a cash rebate of what would be the insured deductible, season tickets to the ball game, or some other offer which may well total far more than the cost of a new windshield! The driver gets a “receipt” for the windshield repair (maybe $25 for multiple chip repairs) and the insurance company gets a bill for hundreds of dollars for a new windshield replacement. In fact, the insurance company can receive claims again and again on the same policy account number without anyone ever knowing it, unless the policyholder happens to check.
A variant of this windshield repair scheme is that the simple repair is started but an “accident” occurs which ruins the windshield. For example, while a small repair hole is drilled to facilitate the repair by stopping the spread of a crack and, “woops,” the drill penetrates the internal laminate. It’s the laminate layer that gives safety glass its shatterproof characteristics. In doing so, the integrity of the windshield is destroyed and the windshield safety glass is ruined. Now, there is no option but to replace the entire windshield. That kind of replacement likely turned over to a fly-by-night company that does the work in a cheap, shoddy, sloppy manner with cheap materials by someone who does not possess the necessary skills. This combination causes the driver ongoing problems with a windshield that was not needed, improperly installed, and possibly not even wanted.
Another illustrated method came through one convicted Louisiana scammer who was billing insurance from a street address in a rural Mississippi town. The address was a house address and the homeowner knew nothing about the company or the fact that his address was being used as a place of business for windshield repair. The reason for this is that legitimate glass shops in rural areas are allowed to bill the insurance company more for windshield replacement than would be allowed in more densely populated and more competitive urban areas. This illegally increases the revenue taken from the insurance company by hundreds of dollars per window.
Some might think or say, “What’s the difference since the work was free?” The difference is that the harvester stole money not only from the insurance company, but also from every one of the company’s policyholders—those who really foot the bill through their insurance premiums. If an offer sounds too good to be true, it probably is. Nothing is for free.
In the next article, the third in the series, our discussion will focus on another unusual approach that can affect those who rent cars, the widespread impact of these scams and how the prosecution of this crime can affect the driver. We will also provide you with things to watch for and several tips on how you can keep yourself safe from those who would take your money in needless repairs.
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