Last fall I made several posts about letting insurance pay for your windshield repair. They are listed under "Insurance Info", in the right column.

Today I met with Elmer, he had requested my service. He's a very nice person who works in north OKC. Unfortunately his windshield was beyond repair.

In talking with him he asked me what I thought about turning windshield chip repairs into an insurance company. Or as it is advertised here "free windshield repair". It seems not long ago he had another chip on his windshield. Another person was getting their windshield repaired by one of the national glass shops that also owns an insurance glass claims management company. (He didn't know the latter.) Anyway they convinced him to get his windshield repaired and turn it into his insurance. The tech told him; "It Won't Count Against You On Your Insurance".  Guess what! When Elmer, received his insurance premium, it had gone up. When he inquired as to why, he was told "Because You Filed A Claim".  The only claim he had was for the chip repair.

It seems I hear this more often these days. Before you file any insurance claim here's some things I've said before, but I feel they should be repeated.

Never Call Your Insurance Company Or Agent First - Most windshields are under $500, call a few glass shops to get prices. An AGRSS certified shop should be your choice. If the windshield cost is under your deductible just pay it out of pocket. If it is more than your deductible you should decide if the risk of a rate increase is worth the additional savings. Remember: What your insurance company and agent don't know means you won't get a premium increase.

CBS last July warned that just contacting your insurance to ask about filing a claim could be reported as a claim and that includes your agent. The story is also linked to the right.

Myth: Windshield Chip Repair Isn't A Claim And It Won't Hurt You - Anything turned in for payment is a claim. A $10 claim is the same as a $25,000 claim in their eyes. A claim is entered on your C.L.U.E. report, stays there for 5 years and can affect your rates for 3 years.

Some insurance companies that state they won't charge you for a chip repair claim, will when you turn in a dented fender. I know of one person I turned in their chip repair. Months later they slid on ice into an object. They were told that since you have 2 claims in a year, you are canceled.

While there is a few that will accept paying for a chip repair and not hurt you. If you decide to switch insurance companies, you may be limited in your choice as some may reject you since you have a claim. You could also face a higher quote since you have a claim on file, if they decide to quote you a rate at all.

It's Not Against The Law In Oklahoma - I have checked with the Oklahoma Insurance Commissioner's office. It is not illegal for an insurance company to promote paying for chip repairs. It is also not against the law for them to state to you that you won't get a rate increase. Then enter a claim on your C.L.U.E report, that most insurance companies use to determine your rate. Further they can increase your rate or combine it with another incident to show 2 claims on your record. This appears to have been done in New Mexico. See the link in the right column.

It Isn't Free - While it may not cost you anything, your insurance is paying. They many times no longer save money by paying for these chip repairs. Simple math; you have a $500 deductible, your windshield costs $250, when they pay for your repair, they just lost money. Unlike the old days when a windshield cost say $600 and you had a $100 deductible.

Keep in mind most insurance companies have contracted out their glass claims management. As your claim moves through the administration process the cost is tacked on. A repair shop many times is paid $50 for a repair. The reason so your claim can be electronically processed and carried on their books. I've priced the electronic programs at over $1000 per year. Of course that can be contracted out for a charge as I have done. At each step the price charged goes up until your chip repair nearly doubles in cost.

Be aware that each claim paid out, whether it is for a windshield repair or what ever is a loss. Losses are passed on to the consumer as rate increases.

Finally, by turning in your windshield repair in, you risk loosing your no claim discount.