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Avoid Practices That Add to Your Insurance Costs
What could you do with an extra $1,000? The Coalition Against Insurance Fraud (CAIF) estimates that fraudulent practices add an estimated $1,000 to the average family’s insurance premiums. Those additional costs add up to $80-$100 billion every year.
As a company dedicated to managing claim costs and keeping your rates affordable, we at Nationwide Insurance have taken steps to remedy this situation. By developing quality claims programs, such as the Blue Ribbon Glass Service, we perform a number of services that help manage claims. For instance, when you report an auto glass claim and schedule service by calling 1-800-421-3535, we gather accurate claim information and provide you the option of scheduling service with a Nationwide Blue Ribbon Glass approved service provider or a shop of your choice.
While there is no single answer to activities that may drive up insurance claim costs, each of us can help curtail the practices that unnecessarily cost consumers millions every year. For instance, you can watch for the following questionable activities that drive up the cost of claims:
- Deductible Waiving - This can be considered an illegal practice in some states. When a glass shop waives a deductible, this expense is likely added to the amount billed to the insurance company. As a result, this ultimately drives-up insurance premiums.
- Incentives and Gifts - If something seems too good to be true, it probably is. The practice of offering free dinners, gift certificates, cash rebates and other incentives can inflate the cost of the claim and lead to higher premiums. This practice is also illegal in some states.
- Repairing or Replacing Undamaged Windshields - Some glass shops have been known to approach individuals at gas stations and car washes offering incentives to repair or replace pits in glass caused by normal wear and tear. Normal pitting often does not require a repair, as it does not compromise the structural integrity of the glass. Unnecessary repairs contribute to increased premiums in the industry.
- Consider a Repaired Windshield - On average, when a windshield is repaired, it costs 80% less than a full replacement. Windshield damage less than six inches in length, about the size of a dollar bill, can often be repaired instead of completely replaced. This benefits the policyholder by maintaining the original factory windshield seal and Nationwide pays your deductible, if you have comprehensive coverage, for a quality repair if appropriate.
To help you make informed choices when you need service, Nationwide recommends you use an auto glass company that provides:
- Knowledge - Quality starts with technicians tested and trained on the latest products and techniques.
- Reliability - Make sure only glass that meets all Federal safety standards is used.
- Safety - New quick cure windshield adhesives provide a faster “safe drive-away time.”
- Commitment - Ask the service provider if they have a drug-free workplace and if new employees are screened for drug and/or alcohol abuse.
- Expertise - Choose a provider that specializes in auto glass claims and is trusted by your insurance company.
We will keep you informed of the ways we can work together to keep claim costs low and keep rates affordable. Together, we all make a difference!
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