Ian S
Thinks s/he gets paid by the post
Here in Phoenix, there seem to be a lot of places that offer up to $100 back when you get your windshield replaced via your insurance. That seems ridiculous to me that the insurance companies apparently overpay so much for windshield replacement. And it's not just someone working out of their truck either - it's actual bricks and mortar outfits with these offers. At least one says they use OEM glass by Pilkington, a well-known brand. What gives? What corners are cut?
I've actually been in the auto glass industry for the past decade and have extensive knowledge on the subject. So here's some insider information for my fellow early-retirees. Now this applies to the few "Deductible is waived for auto glass damage" states like AZ, FL, SC and a few others. The insurance company usually hires a third party to handle their glass claims for instance Safelite or Lynx. Those parties adhere to a predetermined amount that the insurance company has agreed to pay for any specific year, make, and model windshield. How that works is there is what's called a NAGs list. That's National Auto Glass specifications. That list is compiled every year and it costs 300+ dollars just to get a copy. Anyways that list is a standard that everyone follows. The prices on that list are 2-4 times more expensive then what we "auto glass shops" can usually purchase them for. With OEM or dealer parts it's usually 30% more. So to battle these guaged prices the insurance company depending on your "relationship" and "history" with a particular glass shop will pay 40%-60% less then the Nags price. You'll sometimes hear them say the percentage at the end of your insurance claim if you have a glass shop on the line. Plus a few hours labor. So what's left over is not as much as you might think after paying the installler, sales rep, overhead. After the "incentive" for the customer we are talking about 50-150 dollars. That's profit per job. Now i don't think that's unreasonable to make off an insurance job. Anyone who makes a living from insurance claims would actually say that's quite low! Now that's the way it works in most states. In states like Florida you have glass shops that will deny those rates. Those are the ones you need to watch out for. If they deny the rates RUN! The glass company that denies the rate will later sue your insurance company for 3 to 4 times that amount And who do you think gives the authorization for them to do so? YOU unknowingly will grant them permission. Read before you sign people. I'm thinking of writing an "underground" "insider" FAQ revealing all the secrets of the biz. What do you guys think?
