In the state of Arizona, Republican Representative Nancy McLain introduced a bill entitled HB 2463: Auto Glass Repair; Fraudulent Practices. Within the legislation, McLain and seven other Arizona representatives outline unlawful practices that protect the auto glass consumer and the insurance companies. The bill begins by stating it is illegal for a person who sells or repairs automobile glass to submit a false claim to the insurer. For example, this person cannot knowingly submit a claim for work that is not needed – if the customer only needs a small glass repair, the claim should not be submitted for full replacement glass.
This is especially important in regard to windshields. The bill prohibits a glass seller or repairer to add damage to the glass in order to receive more money from the insurance company for a windshield repair or any other type of reparation. Also, the person cannot encourage, advise or instruct the policyholder to add further damage to the glass themselves. The person also cannot tell the policyholder that the repair or replacement glass will be entirely paid for by the insurance company. This person is merely a middleman and not a representative of the insurance company, thus cannot speak on its behalf. The only time this is legal is when, “the person making the statement is employed by or is a producer contracted with the policyholder’s insurer.”
Thus, for a windshield or other kinds of auto glass, the state of Arizona protects all their citizens against auto glass repair fraud. If you live in Arizona or anywhere else in the US and need your auto glass repaired, be assured that TeleGlass works with your insurance company and explains the entire process to you. Please contact us at TeleGlass.com for more information.
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Here’s the bill if anyone wants to read it.
This bill is a wolf in sheep’s clothing. It is a gag order on Arizona glass shops. It appears from the tone of your post that you may not be concerned about your own company competing against the largest TPA in the world. That’s great that you don’t have the same concerns as the other small to midsize TPA’s. Do you really believe this bill is about “protecting the consumer”? Doesn’t your business model depend on the success of the independent glass shop?
Ben,
Stopping fraudulent claims is hardly a gag order on Arizona Glass Shops.
You are 100% correct that we are not concerned with this bill as ensuring all claims are filed in an ethical manner is well aligned with our company’s core values. If you read this bill you will see that it basically says you can’t lie about the facts on a glass claim or damage the glass further, something we expect from all glass companies. I would hope most independent glass companies don’t submit fraudulent claims, and in my opinion this bill will only harm those who cannot do an honest business. Our business model does go hand in hand with the independent glass shops, however, only those independent glass companies who are well respected, follow established safety standards, bill at reasonable rates, billing for parts that are not needed, or attempting to submit claims behind an unknowing consumer’s back.
Although this bill is written as a consumer protection bill, it’s a direct attack on the auto glass industry and is written to benefit the insurance companies. It drives a wedge in between the consumer, and their shop of choice. It is already against the law in every state to commit insurance fraud.
The details of this bill prevents the “honest” discussion between the glass shops and their customer and interferes with legitimate working relationships and may well promote the use of inferior products or parts to the uninformed consumer.
Does the insurance company really need to take over the legal rights of the insured?
This bill allows the insurance industry to pursue their own agendas instead of what is actually in the insureds best interest.
Who is better qualified to determine what level of work is necessary other than the glass shop which will be banned for discussing it?
I for one would not feel comfortable ignoring my own judgment on the installation of a vehicles safety device by advising customers to abide by their insurance companies standards, but would be forced to do so to avoid penalties.
If this were the case, wouldn’t the insurance company have to actually contract for the repair?
Clearly this bill is targeted specifically at a very small segment of the auto repair industry; auto glass. The original post was to simply discuss the bill, not to pass judgment. I think it deserves a deeper dive; we’ll continue the analysis in a future post.
Ben – thanks for your passion in serving your customers. We’ll continue the conversation soon!
Great idea, but will this work over the long run?
This bill pertains to your BJ and Danny’s car wash scams. Yoy bring your car in to get a wash, the guy comes over and wipes your glass and checks to see if you want your cracks repaired. These are the ones causing these problems. I no longer go to these car washes as I almost ogt in a fight with the guys over not wanting my glass fixed. Blame those fools!
Frank, I think you’re right. In the industry, this practice is called harvesting, and a few bad apples seem to have spoiled quite a bit for the rest. The practicioners can be very aggressive, and it makes for an usavory experience for almost everyone.
Besides, there’s no such thing as a “free repair.” A repair that is covered by your insurance if you file a claim? Yes! But that’s not the same as free.