Whose  
Warranty is  
it Anyway?  
Behind  
the  
Guarantee  
BY JENNA REED  
18 ‚AGRR ‚ July/August 2016  
www.agrrmag.com  
warranty provides the custom-  
er with assurance that the work- what’s the best route for a shop company’s website.  
manship in an automotive glass owner to take? AGRR™ surveys “Damage not involving defec-  
replacement is done well, and, and if the warranty landscape to help you tive workmanship or materials  
it’s not, it will be corrected. avoid issues that might lead to dis- is expressly excluded from cov-  
With so many options out there, days of discovery, according to the  
A
A warranty is a guarantee and satisfied customers.  
promise by a company that it will  
erage,” says the website. “In no  
event shall the manufacturer or  
vendor be liable for incidental or  
correct any deficiencies in work- Who Offers Warranties?  
manship, materials, or both, for a  
In an informal review of AGRR™ consequential damages.”  
certain length of time. Warranties magazine’s Top Automotive Glass  
makes good business sense and can Retailers, 72 percent marketed What about TPAs and Insurers?  
help give customers piece of mind.  
In the automotive glass world, ty of coverage on their website.  
this means that if a water leak or  
some form of guarantee or warran-  
Though third-party automotive  
glass claims administrators (TPAs)  
Tennessee-based Jack Morris may promote national warranties  
air leak occurs, the customer can Auto Glass offers a nationwide con- as a way of shepherding business  
return to the AGRR company and tract and guarantees its automotive toward in-network companies,  
have the issue corrected.  
A written warranty generally cov- and faulty workmanship for as long them, Lloyd says. And AGRR shop  
ers materials and/or workmanship as a customer owns the vehicle. owners who sign network participa-  
for a certain period of time. Auto Glass Fitters’ warranty, mean- tion agreements such as Safelite’s,  
glass replacement against defects AGRR companies actually issue  
Some warranties, however, have while, covers manufacturer defects agree to take responsibility for any  
exclusions. For example, if rust is in the glass or any leaking or other corrective work needed, the cost  
evident prior to the installation, defect related to the installation of associated with it, as well as the  
the company may not guarantee stationary glass parts. The compa- liability for any issues that could  
the installation.  
ny says it will repair the defect or occur for negligent work. This is  
The length can also vary. Some are replace and reinstall the stationary according to a copy of a 2011 Safe-  
even considered “lifetime.”  
glass part at no cost to the customer. lite Solutions network participation  
The section in a warranty about  
Many companies do not cover agreement obtained by AGRR™  
workmanship states that the tech- any leakage or stress cracks caused magazine/glassBYTEs.com™. Safe-  
nician installed the glass properly, by pre-existing rust, structural lite Solutions is the glass claims ad-  
using the proper techniques and damage or other damage caused ministrator for many insurers.  
tools. If the warranty covers mate- by vandalism, nor do they cover  
rials, then the AGRR company has impact with foreign objects.  
If the glass shop doesn’t rectify  
an issue, then Safelite AutoGlass or  
agreed to replace it for a customer  
How do local and regional com- a shop on its network will step in  
at no or reduced charge if the glass panies handle warranties outside and do the work and Safelite Solu-  
is defective within a specified peri- their service area? If the customer tions can recoup the funds, accord-  
od of time.  
If a company offers to replace a workmanship issue arises, the  
leaves the shop’s service area and ing to the TPA agreement.  
When the TPA and/or the insur-  
the glass no matter why or when it glass company will usually subcon- ance company mentions the nation-  
breaks, then the warranty moves tract the remedial work to an AGRR al guarantee to a customer they are  
into the realm of insurance.  
Chuck Lloyd, an attorney with  
Livgard and Lloyd, in Minneapolis, customer moved and we hired a  
shop in the new location.  
“We had a situation where the contends.  
The warranty area of the Safelite  
in essence selling insurance, Lloyd  
Minn., also refers to such national glass shop in the new area and contract states: “The participant  
warranties mentioned by insurers worked out a deal,” says Rick Ro- [the shop] warrants that all repairs  
and automotive glass claims admin- sar, president of Rapid Glass in Min- and installations will be free from  
istrators during the first notice of nesota. “That shop did the work defects in material and workman-  
loss as more akin to insurance than and we paid them for it.”  
ship for as long as the customer  
an actual warranty. However, the instances of such an owns the motor vehicle on which  
“The customer is actually buying issue arising are rare, Rosar notes.  
the work was performed. Partici-  
insurance,” Lloyd says. “When the  
Industry giant Safelite AutoGlass pant agrees to resolve all custom-  
insurance company says, ‘We will offers a limited warranty. The com- er complaints within 24 hours of  
cover this work forever,’ they ar- pany’s warranty covers defects in notice (or any longer period that is  
en’t saying the insurance company material or workmanship for as acceptable to the customer) and to  
will fix or repair the issue,” he says. long as a customer owns the vehi- perform all work required.”  
“What they are saying is ‘we will pay cle. However, the customer must  
somebody to fix the issue.’”  
alert Safelite to the defect within 30  
continued on page 20  
www.agrrmag.com  
July/August 2016 AGRR 19  
Whose Warranty  
is it Anyway?  
continued from page 19  
Is There a Repair Warranty?  
f a customer gets a crack or chip We called Safelite Solutions.  
repaired then decides he wants his The customer service repre-  
I
money back to go to another shop to sentative says that because  
get it re-repaired, he can’t get a refund Safelite AutoGlass attempted  
from Safelite, says Rich Campfield, to repair it, they get paid, the in-  
founder of Ultra Bond. The customer surance company will not cover a  
gets a credit toward a replacement.  
re-repair, the consumer would have  
It’s a generally accepted best to pay out-of-pocket for my work.  
practice in the AGRR industry that The insurance company waived the  
failed repairs cannot be re-repaired deductible on the first (attempted)  
“Basically, they are saying we can  
and will need replaced, so after the repair and paid for it; however, it will try to repair it at no financial risk.  
work has been invoiced, the system not pay for it to be re-repaired.” You could end up spending $75 or  
would not cover an attempt to ‘re-re- “The position most of our clients so to repair the windshield and if  
pair,’” says Melina Metzger, Safelite have taken is that once a repair is it doesn’t work, we will apply that  
Group PR manager. attempted and completed, there amount of money to the replace-  
Then the customer must pay the isn’t a re-repair option,” says Paul ment,” he explains. “Maybe the in-  
deductible for the replacement if the McFarland, LYNX Services’ senior di- surance company will waive the de-  
insurance company waived the re- rector of supply chain management ductible for a repair or maybe the  
pair cost, Campfield points out.  
for automotive glass. “It’s up to the customer must pay for it. If it cracks  
I recall being on a warranty call policyholder if he or she wants to go out, the $75 spent will go toward  
with a customer and the insurance ahead and pursue a replacement.”  
company,” says Campfield. “The Though he has heard of this type  
the replacement.”  
According to the LYNX participant  
break was a less-than-one-inch radi- of request occurring, McFarland agreement, the AGRR company  
ating crack. The technician was not says it is rare. agrees to warrant and guarantee  
able to repair it because it needed “If a repair cracks-out and the cus- that all repairs will prevent the orig-  
to be drilled. The customer looks at tomer needs a replacement, then the inal glass damage from spreading.  
the break and says it needs to be consumer has to pay their full insur- If the chip cracks out, LYNX says the  
drilled and the technician says he ance deductible,” says Campfield.  
company must inform the TPA prior  
is not allowed to drill. The consum- It’s not really a repair guarantee, to doing any replacement work. The  
er drove a mile down the road to my says Chuck Lloyd, an attorney with company must also explain why the  
company for a re-repair (although Livgard and Lloyd, based in Minneap- technician aborted the work or the  
there was no resin in the break). olis, Minn.,  
chip cracked out.  
The in-network participating when choosing a shop outside of free from defects in material and  
shop is responsible for the cost. the network, the consumer will be workmanship for one year. All me-  
Warranties are designed to pro- responsible for understanding if chanical operating parts within  
tect consumers and hold shops ac- the shop offers a warranty,” says movable glass installations are war-  
countable for doing everything they Metzger. “The insurer won’t war- ranted for 30 days.  
can to make a car safe to drive,” says ranty a non-network shop and is  
If an issue develops after work  
Melina Metzger, Safelite Group PR not able to confirm if the shop itself is completed, the in-network shop  
manager. “If something goes wrong, offers a warranty. However, they must agree to cover the expense  
the customer can trust the shop will then encourage the policyholder to and resolve the complaint within  
take care of it. Insurers want to give contact the shop to learn about its 24 hours or at the earliest conve-  
policyholders this peace of mind, warranty.”  
and networks make it possible by LYNX Services also includes war-  
nience of the customer.  
“If a participant fails to provide  
requiring participants to warranty ranty language it its 2012 participant warranty resolution work, and/or  
their work.” agreement obtained by AGRR™ perform such warranty work to  
How Safelite handles warranties magazine/glassBYTEs.com™. The the satisfaction of a customer for  
varies by insurer. “Some feel it’s in-network AGRR company must whom it has originally completed  
important their policyholder know agree that all replacements will be the work, and/or the customer re-  
20 AGRRJuly/August 2016  
www.agrrmag.com  
quests another participant, then means the insurer can choose to f x contract between the insurer and  
LYNX Services may assign the per- the glass or pay to have it f xed. consumer. These are two separate  
formance of such warranty work “With the repair it option, the in- contracts. The f rst contract is be-  
to a third-party service provider surance company is the contractor, tween the consumer and the au-  
that can complete such work in a so it is a party to the repair con- tomotive glass shop. The second  
timely manner,” according to the tract,” says Campf eld. “With this contract is between the consumer  
participant agreement.  
option, though, comes liability for and the insurance company.”  
LYNX says it has the right to re- anything that goes wrong and the  
cover the original amount of mon- insurer is responsible.”  
Safelite Solutions participation  
agreement notes that the in-net-  
ey paid if another shop does the  
“The repair or replacement con- work shop agrees to assume all  
work. It will also assess a “nom- tract is between the consumer and risk for a repair or replacement. By  
inal service fee” and deduct this the automotive glass shop,” he signing the agreement, the compa-  
cost from subsequent payments says. “By the insurers own choice, ny agrees to discharge Safelite from  
to the in-network glass shop. The the insurer is not a party to this all claims and liabilities that could  
company also may assess an ad- contract so they have no right to result from faulty workmanship.  
ministration fee if LYNX must hire dictate the price, criterion, prod- LYNX has similar language in its  
another company to do the work. uct or terms and cannot offer a TPA agreement, saying the AGRR  
The risk of the work falls on the warranty. Under the pay to have company must assume all risk for  
AGRR company, meaning the individ- it repaired option, per the poli- the work performed.  
ual shop indemnif es the warranty.  
cy, the insurer is to pay a fair and  
“The insurance company’s name is  
Rich Campf eld, founder of Ultra reasonable price to indemnify the not on the TPA agreement with the  
Bond, says this “payment of loss” consumer’s loss. The automotive  
provision of the insurance contract glass shop is not a party to this  
continued on page 22  
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July/August 2016 AGRR 21  
Whose Warranty  
is it Anyway?  
continued from page 21  
participant auto glass company,” one in this industry who has ever participants over the years.  
says Campf eld. “When a customer seen such a document. If there is  
“What transpires on the call de-  
makes an auto glass claim, the TPA any warranty work, the participant pends on an insurance company’s  
may tell the customer that if he uses shop has to do it and cover the non-participant process,” he says.  
an out-of-network shop, he will not cost,” says Campf eld.  
get the insurance company’s na-  
It’s up to the insurance com-  
pany as to what the call-center  
script entails as it covers the loss,  
tional warranty,” he adds. Campf eld TPAs Respond  
calls this the “phantom warranty.”  
Each insurance company has McFarland says.  
This can often lead the customer loss processes that honor the in-  
“Our rules have to align with  
to choose an in-network shop, he sured’s choice, says Paul McFar- each insurance company’s phi-  
says. By encouraging the custom- land, LYNX Services’ senior direc- losophy,” he adds. “In some in-  
ers to call the AGRR glass shop f rst tor of supply chain management stances, the insurance company  
rather than the insurer, the glass for automotive glass.  
company has a better chance of ex- “If the policyholder requests the insured chooses, connect  
plaining to the customer what his non-participant [out-of-network the person with the retailer they  
options are, he adds. AGRR company] then each insur- want. Others want us to tell the  
There is no warranty from the er we work with handles it dif- insured he or she will not be cov-  
says no matter which company  
insurance company, as they are ferently. We currently work with ered under the participant war-  
not a party to the repair contract. I many different insurance compa- ranty. Or they may want us to  
have asked customers and insurers nies and, of course, State Farm.”  
to email me the insurance compa- McFarland notes that approx- has selected a non-participant in  
ny guarantee and they have nev- imately 9,000 AGRR companies the insurance company’s glass  
give notification that the insured  
er been able to do it. I know of no have registered as LYNX Services program.”  
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22 AGRRJuly/August 2016  
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