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The pricing structure effective for services performed on or after Feb 3.2006 is as follows:
(YOUR AREA PRICING SET FORTH BY SGC AND AM FAM)
Our policy holders have the right to choose an auto glass shop of thier personal choice. However, American Family is obligated on behalf of all its policyholders,to pay only the market price for glass replacements and repairs. Therefore, if you are unwilling to provide services at the market prices American Family has SET FORTH above, please consider declining the job so our insured will not be responsible for the additional charges.Further no communication by you which rejects OUR glass pricing will be binding upon American Family. If you accept a glass repair or replacement service for one of our insureds, while intending to charge more than AMERICAN FAMILY'S MARKET PRICING, YOU MUST advise our insureds prior to initiating repairs so the insured can determine whether they are willing to pay the additional costs for your services.
Glass claims manager
American Family Insurance
That was not an American Family representative posting that. It was a copy/paste of the letter someone received.
American Family does not set the "fair and reasonable" price for the area. If you want to challenge them or any other company on fair and reasonable in court and you can show other companies would pay your billed amount, you will win. How can 4 other companies say something is fair and reasonalable, but American Family thinks it's not. It won't hold up. Now, if you bill $400 higher than any other company in your area, you will not win.
If the insured pays the bill and turns it into the agent, the agent then forwards it to "fast pay" program in Madison, WI and the insured will be fully reimbursed. Sometimes the agent will pay it out of the agency checkbook as well. If an unpaid invoice is submitted to the agent it will be forwarded to Safelite Solutions and reimbursed at established rates.
What really puzzles me is how Am fam can establish market prices. IS THIS NOT PRICE FIXING????? And they are admitting to it on every fax they send out to the shops!! They even call it "American Family's market price". But we all know this is really sgc setting these prices. yea and right, they don't communicate this stuff behind closed doors and in little office mtgs and such,,,, YEA RIGHT!
By being on their network, you are essentially empowering safelite to negotiate YOUR pricing with the insurance companies that they represent. safelite determines a per incident claim amount and bills the insurance company at those rates no matter if the claim is a star repair, or a Ferrari 250GTO windshield. It is madness that we have allowed the company with the worst management history in the industry to represent us to our largest customers. I guess they are not content with bankrupting themselves, they need to take others down with them.
It's not true that Safelite bill Am Fam one set price no matter what the damage. Safelite makes a proccessing fee and it is added to the actual paid amount for the damage. I don't remember the amount exactly, but for example, if you agreed to Am Fam's pricing and billed them the agreed upod $276.00 for a windshield, the $276.00 would be paid to you from American Family and an additional $20 (or whetever the amount is between the two) would go to Safelite.
I believe Safelite may have a flat price for some companies, where they charge the same flat fee for any type of damage, but that is not the agreement that is used when you bill Am Fam via the Safelite Glass Network.