In or Out?
Industry Debates the Role of Insurers
in Windshield Repair
by Penny Stacey
The struggle between the auto glass and insurance industries is not a
new one. Whether it’s an issue of alleged steering, billing problems,
paperwork, or the new inspection issue (see related story on page
26), a rift has always existed between these two interests. Based
on this, it may have been no surprise for some to see a suggestion from
National Windshield Repair Association (NWRA) president Kerry Wanstrath
(also of Glass Technology) in January/February AGRR™ magazine that perhaps
the insurance industry should exit the auto glass industry (see story
on page 36 of the January/February issue).
Wanstrath likened auto glass repair and replacement needs to a maintenance
issue, and compared it to the tire industry. “Do people stop getting their
tires repaired when they get a nail or flat?” he asked. “Of course they
don’t. There is lots of life remaining in the tire, so you simply fix
the affected area and you are good to go. I see no real difference in
He also argues that, if insurers stopped covering auto glass in their
automotive policies, the industry would have more direct access to the
consumer. “I truly believe most (if not all) independent shops would be
better off and have better market access to the real customer (the person
who owns the car on which you are working) if all insurance companies
exited the auto glass repair and replacement industry,” he writes.
Ultra Bond president Rich Campfield, whose company manufactures a windshield
repair system and also has a retail operation based in Durango, Colo.,
agrees, pointing out some of the issues that the insurer-auto glass industry
relationship has fostered.
“Our courts and government are too broken to enforce the laws that protect
the consumer and small businesses when big insurance is involved,” he
Jeff Wurst, owner of Crackmaster Windshield Repair in Redding, Calif.,
has mixed views on the topic. “Insurance makes it easy for the customer
to get the repair done, but insurance has too much to do with the controversy
of steering and conflict of interest that restrains my trade,” he says.
is a lot of legitimacy lent to the windshield repair industry when the
insurance company is willing to foot the bill.”
—Charles Parker, ACTION Windshield Repair
However, there are several industry representatives who prefer the status
quo—and would like to see the auto glass industry’s longstanding relationship
with the insurance industry continue.
In fact, AGRR™ magazine received and published a letter to the editor
in March/April 2011 (page 22) about this very topic from Phoenix-based
Fas-Break Inc. chief executive officer Kerry Soat, who claims the insurance
issue has a safety component. “Insurance companies offer glass coverage
for the windshield because it is part of the vehicle’s safety features,”
he says. “A broken windshield makes for an unsafe vehicle, and an insurance
company aims to keep your vehicle in a safe operating condition.”
Charles Parker of ACTION Windshield Repair in Harrison, Ark., argues that
the involvement of the insurance industry in an auto glass claim also
can help promote windshield repair.
“Admittedly out here in the field there is a lot of legitimacy lent to
the windshield repair industry when the insurance company is willing to
foot the bill [for the customer], and they connect you with your customers,”
says Parker. “There’s a lot to be said for that.”
Some also point out that an insurer exit from the business could make
things difficult for those who rely mostly on insurance work.
“I think that if auto glass wasn’t covered by insurance a lot of the smaller
repair and replacement companies that survive primarily on insurance work
right now would close their doors immediately,” says Eugene, Ore.-based
Delta Kits Inc. president Brent Deines, who for many years operated his
own glass shop. “That’s certainly something I don’t want to see. I do
think there are enterprising entrepreneurs out there with flexibility
who would go on, but certain people are going to suffer.”
In states that don’t require annual safety inspections, without the help
of insurance, consumers might not be bothered by windshield damage, Deines
“One concern I have a long those lines is that consumers if consumers
have to pay out of pocket, many simply aren’t going to have that work
done,” he says. “At least in states where annual vehicle inspections aren’t
required, if people have a choice between having cable TV or living with
a broken windshield, I’m kind of concerned they’d live with that broken
The Deductible Issue
Many today already are paying for their own auto glass claims, due to
both high deductibles for replacements—and the fact that some insurers,
including State Farm, have ceased waiving deductibles for windshield repair.
State Farm first announced the decision to stop this practice in April
of 2005—more than six years ago.
“We all should be promoting the safety aspects of windshield repair to
the insurance industry, along with getting State Farm to reverse their
decision regarding waiving deductibles for repairs, rather than trying
to avoid dealing with the issues at hand,” says Soat.
State Farm officials have said that waiving deductibles for windshield
repair never was meant to be a permanent program,
though—and that the program only was put into place to help increase consumer
awareness of the service.
“It was never our intention to waive deductibles forever,” said State
Farm’s Bob Bischoff, who then served as national glass claims manager
for the company, during a 2008 industry meeting. (At press time, State
Farm officials had not responded to requests for comment on whether this
policy might be considered again.)
But Parker says even now he’s still feeling the effects of the six-year-old
decision. “My State Farm business is about half of what it was,” he says.
“A lot of them are willing to pay, but a lot of them are not. A lot of
them are willing to wait and let it bust out.”
Wurst, however, says he thinks many insureds still are happy to pay for
windshield repair—despite the deductible issue.
“I still get a fair number of State Farm customers, even though they quit
waiving deductibles, who are still responsible and
want to repair their windshields,” he says.
Wurst estimates that approximately 80 percent of customers still will
pay for a windshield repair out of pocket. “People are still concerned
about keeping their windshields repaired and maintained,” he says.
Wanstrath agrees. “Since State Farm stopped waiving the deductible for
repairs, have State Farm customers stopped repairing their windshields?
That has not been our experience,” he says.
Deines says when insurers make such policy changes, it’s up to windshield
repair business owners to adapt accordingly—and without that change business
likely will suffer. “I think that initially a large portion of our customers
panicked [when State Farm stopped waiving deductibles for windshield repair],”
he says. “Some of them went out of business immediately, but the vast
majority stuck it out and adapted their business models for that change.”
He adds, “We always instruct our customers that they need to be flexible
and look ahead and don’t expect things to always be the same. Don’t put
all your eggs into one basket. If your business is all about insurance,
you better have a Plan B.”
Penny Stacey is the editor of AGRR magazine.
Calling All Readers
What do you think about this issue? What are your top issues as a windshield
repair business? Please e-mail email@example.com.
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