My how things have changed. If you would have asked me a year ago about billing an insurance company for windshield repairs, I would have filed the claim for you without question. As time has gone on though things have changed. Anyone wishing to have their insurance pay for the windshield chip repair should think twice, it can come back to haunt you for the next 3 years. Let me explain why, but first review why we came to this change in position.
Going back several years ago, windshield repair was a way for insurance companies to save money. At that time a majority of insureds had a low deductible ($100 or less) on glass coverage, while windshields were much more expensive. On February 28, 2005 things began to change; insurance companies made a drastic change in what they would pay for windshield replacements. Most windshield prices were slashed 68 to 72 percent. Simply put, a windshield that sold for over $600 was reduced to around $200.
While the change in prices were part of the puzzle, individuals were increasing their deductibles ($250 & $500 are common) to keep premiums low. As a result, the insurance companies found that instead of saving money with windshield repair, they were losing money. In the spring of 2005, State Farm, the largest auto insurer, announced they would eliminate paying for windshield repairs. Based on the information we've seen in the news, indications show that if 73% of State Farm's insureds filed on their policy for windshield repair, they would lose money. Again simple math: you have a $250 deductible, the replacement windshield costs $200, if the insurance company pays for the repair they just lost money. State Farm still encourages windshield repair as away for the insured to save money and their deductible.

While that was a start, other insurance companies have also changed their policies towards windshield repair. Some have reduced the number they will pay for, a few have dropped windshield repair, and others have reduced the dollar amount they will pay.
I have been watching this situation. Last month I noted some of these changes. My research found some disturbing information, and why you should consider paying for your windshield repair.
  • C.L.U.E. a data base that most if not all insurance companies use to determine if they will insure you and what your premium will cost you. Windshield repairs can be listed on your C.L.U.E. report. While the insurance company you are with may not care about one chip repair, you may find it difficult to switch to another insurance carrier, you could be quoted a higher rate or refused coverage. A claim on C.L.U.E. remains on file at least 3 years.
  • Insurance companies can advertise paying for windshield repairs, and use it to increase your premiums. A report I found from New Mexico, indicated this had happened there. I called the Oklahoma Insurance Commissioner's Office and was told that Oklahoma insurance companies can advertise that they will waive your deductible for windshield repair, file the claim with C.L.U.E., and then increase your rates.
  • "It's just a small amount and it's a comprehensive claim." I have been told that by agents. The insurance company's own website may tell you that they pay for chip repairs. Look closer; I have not seen one that states you won't get a rate increase, nor have I seen one that states that they won't file a claim with C.L.U.E. Very recently an individual decided to have his insurance pay for the repair. They had sent out notices stating this. In talking with him, he became concerned and he decided to hear what his insurance company would say about a rate increase. He was told over and over again that they would pay for the repair; "Not One Person Said We Won't Increase Your Rates Due To This Claim". Some of these same companies offer a road service program. A news report from The Wall Street Journal, August 27, 2006, MSNBC, Dec. 20, 2005, among other reports, show that when you call for road service, many times it is registered with C.L.U.E. One report I saw was that in 3 years a lady called twice for tire service and once for locking her keys in the car. Her insurance canceled her due to those 3 incidents being reported as claims on C.L.U.E.; she then had difficulty finding insurance. The MSNBC report stated that even by requesting fuel through a roadside service could result in a claim being filed on C.L.U.E
  • Contacting your agent may be a problem as well. CBS News, July 6, 2006, ran a story stating that among other things, indicated that by merely contacting your agent an incident could be reported to C.L.U.E. Here in Oklahoma, it is illegal for an insurance company to give you a rate increase for merely asking about filing a claim. However a report on C.L.U.E. appears legal and could affect you if you switch to another company. The Foundation For Taxpayer And Consumer Rights Organization, has stated that the insurance industry as a whole sees no difference between filing a claim or inquiring about a filing a claim. As an example I have talked to someone and while it deals with a homeowner's policy, it relates to this situation. In talking to a customer, they stated they had received a rate increase because their agent had come out to check roof storm damage. They had requested this so he could check and see if the damage fell below their deductible. When they got their next premium, even though the agent had told them that the damage was below their deductible and the insurance company had paid zero, they received a rate increase. In checking they were told that since they called the agent, it was a claim.
  • Consumer Report Magazine indicates in a report that you should not file any claim unless it is twice your deductible. A report from MSN Money states you should save your insurance only for claims over $1000.
  • The error factor. Like your credit report, mistakes can be entered. For some reason many mistake windshield repair for replacement. I can easily see a report for a repair being mistaken for a replacement, which would actually be a higher claim amount. Likewise a report could show up on C.L.U.E. showing that you asked about windshield repair without any dollar amount. This would leave it open as to whether you paid for the repair.
  • A tale of 2 states, on September 21, 2006, The Virginian-Pilot, reported that due to reduced claims, insureds premiums would be reduced. State Farm itself would be passing on an average 5% savings. In Arizona, The Scotsdale Times, December, 2005, reported that due to high glass claims, premiums were being driven up. Ron Desmond, President of Desmond Insurance Group, said if you use insurance to pay for windshield damage, you can expect a rate increase if you switch carriers. He went on to state, "whether it's $10 or $10,000, a claim is a claim to them". An insurance insider stated that by 2010 optional glass coverage will be eliminated, due to the high cost and claims.

What I believe, what I know and what I don't know:

  • I know that here in Oklahoma City we have some very good agents. My former agent, whom I switched from due to the insurance company itself, and Pam my current agent, are tops. However no matter how good they are, the insurance company is going to do what they want regardless of what the agent says or does.
  • I know that between different insurance companies and policies, getting a straight answer may not be possible. The safe bet would be to pay for the repair.
  • I know by choosing repair you would be saving your deductible.
  • What position insurance companies will take in the future is unknown. Windshield repair claims may or may not count against you, but remember they can remain on C.L.U.E. at least 3 years.
  • I believe with some insurance companies, having a windshield chip repair claim could affect whether you get insurance or the lowest rate.
  • I believe that many insurance companies track windshield repair, and other small claims. That if you have more than 1 that they may claim your vehicle has a higher risk and as such your rate should be increased.
  • I believe a few insurance companies are trying to have their cake and eat it too. By reporting everything to C.L.U.E., they would be in a position to increase your rates, while making you undesirable to their competition.
  • I know that the safe option when getting a windshield chip repair would be to find a shop yourself, without contacting your agent or insurance company. Choose the repair company as you would other services. After all would you call your insurance to find out about getting a tune-up, front-end alignment, or an oil change?
  • Windshield repair is a safer choice. It eliminates the risk of leaky replacements and saves you money vs. your deductible and replacement.

You can request a copy of your C.L.U.E. report by calling Choice Trust at 866-312-8076, or click here Choice Trust

Links you should read:

Run Out Of Gas? They Track That, Too - MSNBC

Get A "CLUE" About Your Insurance - CBS News

Beware Costs of Road Aid - The Wall Street Journal

When Not To File A Claim - MSN Money

What If You Need To File An Insurance Claim? - Consumer Reports.Org

The State Of New Mexico Corporation Commission