Volume 8, Issue 6 - November/December 2006


The Insurance Game

To the Editor:
As Charles Cumpston stated in his Field of Vision column in the May/June issue, I agree there is no great conspiracy among the insurance companies to fix prices. However, his last statement in the article does not reflect “the game” as he called it. The game played by the insurance companies is that they (the party that is actually writing the check) pay the vendor or shop exactly what they will pay and dictate what procedures they deem necessary.

In no other transaction in our daily lives does this apply. When consumers go to the service station, the bakery, the tire store, or the department store, they pay the price as marked. They can go someplace else and pay higher or lower prices. But, for insurance work, you can have 10 auto glass shops in a given market but the insurance company has one price for all and that’s the price they set and will pay.

The editor is right in one respect. It is a game. And all the odds are stacked in the insurance industry’s favor.

John Lucas
Lujaks Auto Body and Glass
Wilson, N.C.

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