According to an industry publication for the insurance claims profession, there is a rampant “unscrupulous” practice of having two different price points for the same product in the auto glass industry: a lower price for “cash customers” and an often dramatically higher price for “insurance paid claims.”

The practice has an adverse effect on insurance premiums, causes massive price disparities and spurs lawsuits.

A class action lawsuit investigation is underway looking at questionable practices by Safelite Auto Glass, one of the nation’s largest retailers of windshield glass replacement and auto glass repair. Consumers with deductibles of $350 or more may have been overcharged for car window replacement, allegedly in violation of state and federal consumer laws.

Safelite reportedly urges consumers to replace their windshields even when they are able to be repaired, resulting in additional expense for the consumer. Safelite is also being investigated for engaging in “steering,” the illegal practice of referring customers to its own repair shops for windshield glass replacement services. It has also been alleged that Safelite Auto Glass customers who pay for windshield replacement through an insurance deductible are actually paying more than customers who do not have auto insurance or do not go through insurance.

“There is more unethical behavior by glass retailers today than what I can ever remember in the past 20 years that I have spent as a student of this industry,” writes Paul Gross, president and CEO of Insurance Claims Management. “It is not uncommon for glass vendors to set-up shop outside of car washes and quick lubes to solicit customers, or in some extreme cases, for the retailer to go door-to-door hoping to find a policyholder with a damaged windshield. These “glass harvesters” deliberately establish their presence in zero deductible markets like Florida, Arizona, South Carolina, Kentucky, etc. to prey on the insurance community, selling their services as ‘free’ to the policyholder.”

According to the industry journal, it creates an unhealthy marketplace as well as “strife and conflict.”

There’s a big problem when the auto glass replacement industry allows a single cash customer to get a better price than what a carrier could achieve with their many thousands of claims, according to the claims journal.

Consumers whose insurance company referred them to Safelite for windshield replacement and who had a deductible of $350 or higher may be entitled to compensation.

In a potential class action lawsuit, Safelite could be accused of setting their window replacement prices so that customers with an insurance deductible pay more money. A Safelite class action lawsuit would seek to recover the difference between what a customer paid for their windshield replacement through their insurance deductible and stop Safelite from allegedly engaging in deceptive business practices.

If you paid an out-of-pocket insurance deductible for a Safelite windshield replacement, you may be eligible to join a free Safelite class action lawsuit investigation.

http://topclassactions.com/lawsuit-settlements/lawsuit-news/47716-safelite-auto-glass-repair-practices-investigation/

Has anyone noticed their cash prices have came way down recently,

maybe this has something to do with this suit.

LMAO!!! If all this true and the insurance companies are really going to get involved, this will hurt the big B in a huge way

Lol. They are just now investigating this Slavelite Practice ???

WAY OVER DUE! WHERE IS THE REAL FRAUD? Look no further......

What a weird price point a $350 deductible. I am assuming this is a weighed average.

The article seems very poorly written and convoluted to me. The link at the bottom seems to lead to a web page fishing for consumers looking to make a quick buck at Safelite's expense.

Everything was directed at Safelite and then all of a sudden it quotes Paul Gross of Harmon Solutions complaining about "harvesters" that actually go out and look for work to do. The very shame of it!

Great job!! This will lead to lower prices for everyone!! If you think the they will take one on the chin, you are mistaken! Keep screwing me and driving the prices lower than they already are.

Ridiculous lawsuit.

The insurance companies are well aware that the cash customer gets a lower price than the insured. What planet are these folks from?

$350 is the average Ins. price for a replacement windshield-not a deductible. Shame on the person that put this article together and the attorney that threw together this lawsuit. Safelite does not seem to "steer" towards replacements or repairs. But they do steer towards their own stores.

Jimmy crack corn... and I don't care!!

I think you are not reading what I am reading.

Joe Dip**** calls for a safelite CASH quote price is $200
Joe Dip**** calls thru insurance has $500 ded his cash prices is now 350

Joe like many people pay no attention, they think everything is covered under insurance. So many calls every day from insurance passing cash customers to me. The only part to me that becomes annoying is the "NAG" faxes from the insurance company asking me why I did not bill the job. With that being said Safelite's network , and LYNX have it to where you can void a dispatch online, so that cut's down on some of it.

I worked for safelite many years ago. The way it works is, you have safelite solutions which is their referral department and safelite autoglass which we are all familiar with. What they do if someone has a high deductible, say $500, the safelite solutions representative quotes the customer the insurance price. Some of the nags numbers are high still on parts like fw2899 gby...The way the language is presented to the customer, either you pay your 500 deductible, or if you go with us, we can do it for $402, which you save 98 bucks. Some people say yes, so they download the work order to safelite and say thanks for the money.

Safelites prices have come down quite a bit. They tend to play with the cash tables depending on how business is in the local market. If they're not busy they lower the cash prices to get business, etc. Another reason why i think they're lowering prices is because they're not paying their techs anything anymore. 12 to 13 bucks an hour, which to me is counterproductive if they're only doing 4 jobs a day versus the old school guys doing 8 to 10 a day at 18 to 20 an hour.

Okay, Mr. Smith, I’m going to put you on the phone with Safelite...my competitor. Why on Earth would you do that? Well, because I have to, sir.

An auspicious start to a customer transaction, to say the least...
...and so the transaction continues...

What happens, Mr. Smith, is when I call your insurance company’s glass claims number, I get a Safelite rep on the line. You’ve probably seen the Safelite commercials. Anyway, they are a big foreign-owned glass repair company and they have developed some sort of unholy alliance with your insurance company to funnel all their glass claims through Safelite’s call center. Really? Yes, sir. And in the process, it’s alleged that they frequently steer jobs from local shops to themselves. Really? Yes, sir. They use many tactics to steer the work, but all of them start with the same fundamental ruse; a Safelite rep presenting themselves to you as a neutral, well-intentioned service rep for your insurance company. That’s pretty sneaky. Yes, sir. They may even go so far as to put your repair job into “inspection” to get you to leave your shop of choice without having the work done. No way! Yes, sir. They’ll call you later and authorize the work and offer to schedule the service for you. But if you schedule the work with that agent, another Safelite employee will arrive to complete the job. Then, unfortunately, we both just got jacked. You are illegitimately inconvenienced and steered and the shop you chose to do the work is denied the opportunity to provide the service to you. It’s all very unpleasant.

What other industry (perhaps beside our collision brethren) have to endure such a patently absurd process with typical customer transactions every single day? Is there one? There must be. Who are they and how have they, individually or as a group, managed a similarly situated and offensive foe better than our industry has been able to manage ours? It seems that ill-conceived, fundamentally flawed litigation has been the hallmark of our industry’s past and recent efforts to level the playing field. Not a good game plan. Just ask Marc Anderson, the IGA, and The State of Connecticut.

True dat, JB, but the collision guys are subject to the very same steering issues and underhanded practices the TPAs use on the AGRR industry. These practices were designed by the insurance industry a decade or more ago. The TPAs use them on behalf of and at the direction of their insurance clients in our industry...while they are implemented directly by insurers in the collision industry. Check out the antitrust suit in Louisiana vs the Farm. While many point the finger of blame at the TPAs, it is, in fact, the insurers that orchestrate the whole scandalous scheme.

in addition - write up #2

Safelite Auto Glass is one of the largest retailers of windshield glass replacement and auto glass repair in the United States. While it is known for its windshield replacement and repair products and services, it seems that the retailer may have neglected to inform Safelite consumers who have auto insurance with deductibles that they will pay a high out-of-pocket fee for a cracked windshield repair than those customers with no insurance who walk into their local Safelite Auto Glass store and purchase the same auto windshield repair services.

According to news sources, the repair cost to install a Safelite windshield glass replacement is usually lower than $500, which is the average deductible charged to the average insured customer. If these Safelite AutoGlass claims are correct, then insured drivers seeking car window repair from Safelite may be paying more for windshield replacement and repair if they choose to process their auto glass repair claim through their insurance rather than buying a new windshield replacement directly from the Safelite retailer.

SafeLite Auto Glass Advertisements and Double Standards

Not only does Safelite not advertise that a consumer will pay more for processing their windshield repair claim through their insurer, allegedly the company in fact encourages their customers to pay for windshield glass replacement with their insurance. On the Safelite Auto Glass website, the company makes claims that auto glass repair is “often fully covered” by most major insurances and tacks on the statement, “though some costs may need to be paid by the policyholder like any deductible,” in order to assuage the worries of consumers concerned with windshield replacement costs.

According to consumer claims, there is no place on the Safelite Auto Glass website that states consumers will generally pay more for auto glass repair and replacement if they go through their insurance company and pay the associated deductible. As a result of these claims of unfair practices in Safelite windshield repair costs, many consumers may choose to file a Safelite AutoGlass class action lawsuit.

http://topclassactions.com/lawsuit-settlements/lawsuit-news/47874-safelite-windshield-repair-costs-insured-customers/

From time to time I come to this site to get a laugh. Instead of actually being a unit and doing something about it you guys doubt what each other say bicker back and forth. And let's don't forget about the grammar police. Your old leader fought a fight that all of you dream about everyday. And eventually sold out to the enemy. Because he had you guys on his team. And your enemy has BIG #'s that help one another. Now grammar Police your turn!!! LOL!!!

Well said. Talk about a bunch of people chasing their own tails.....