Insurance question

[secondchance]

Hi,

This is a non-ZR1 question but I thought I would get a better exposure here.
One of my niece has a BMW and while driving around got a crack on the windshield. To make a long story short, her insurance, GEICO, is telling her that the OEM windshield is about $900 whereas Safelite is about $500. Furthermore, if she insits on a OEM windshield she will have to pay for the difference on top of the usual deductible. I always thought that we, the consumer, have a right to insist on OEM replacement part? Does this sound right?
I recall a thread that dealt w/ insurance issues and also recall some of the registry members are/were insurance adjusters. Any suggestion would be appreciated.

[mike100]

Not with GEICO- they will buy used parts given the opportunity...or wear you down. I know somebody who had to retain legal help to deal with them.

[GOLDCYLON]

Hi,

This is a non-ZR1 question but I thought I would get a better exposure here.
One of my niece has a BMW and while driving around got a crack on the windshield. To make a long story short, her insurance, GEICO, is telling her that the OEM windshield is about $900 whereas Safelite is about $500. Furthermore, if she insits on a OEM windshield she will have to pay for the difference on top of the usual deductible. I always thought that we, the consumer, have a right to insist on OEM replacement part? Does this sound right?
I recall a thread that dealt w/ insurance issues and also recall some of the registry members are/were insurance adjusters. Any suggestion would be appreciated.

Unless you have this spelled out in your policy such as an "Conditional Agreed value" the insurance company can use aftermarket parts. Most normal policys offer free replacment glass so paying a deductable sucks. I suggest dumping them after this claim is done. I am sorry to inform they have you although. GC

[Z51JEFF]

Ive never heard a single positive thing about Satellite glass,all garbage.Depending on what state your niece lives in Id look into filing a complaint with the state.

[Kevin]

more reason for me to stay far far away from geiko. only time i'd be hit by someone with geiko i was in a rental that i got the insurance on.

[secondchance]

That bad!? Progressive had no issue with paying for ZR-1 windshield plus new OEM weatherstrip...

[LGAFF]

Every policy allows for like kind and quality......all glass must meet safety standards so there is really no difference, and in most cases its all made by the same company.

If aftermarket parts were not used OEM parts would be outrageous prices......you do have the right to use what part you want but insurance company is not required to pay for more than LKQ.

Glass is one of the most overpriced items around......

[LGAFF]

By the way Safelite runs a Net Promoter Score in the mid-80s........that means 8 of 10 people go out of their way to promote when they use them as a vendor....to put it in perspective Harley Davidson runs an 81%....and best in class companies run a 59

Net Promoter is the most popular measure of customer loyalty

[LGAFF]

Unless you have this spelled out in your policy such as an "Conditional Agreed value" the insurance company can use aftermarket parts. Most normal policys offer free replacment glass so paying a deductable sucks. I suggest dumping them after this claim is done. I am sorry to inform they have you although. GC

Most companies repair glass for free....glass coverage is an endorsement(costs you) you have to buy, otherwise your comp deductible applies...

[LGAFF]

http://www.mass.gov/ocabr/consumer/insurance/auto-insurance/faq.html#q5

Above is the MA DOI FAQ page:

5) THE BODY SHOP IS REPAIRING MY AUTO AFTER AN INSURED LOSS. WILL MY INSURANCE COMPANY PAY FOR ORIGINAL EQUIPMENT MANUFACTURER (OEM) PARTS?

If the repair of the damaged part impairs the operational safety of the auto, the insurance company will pay to replace it with an OEM part. For non-safety parts, unless your claim occurs during the first 20,000 miles on the auto's odometer, you are not entitled to OEM parts. For autos with more than 20,000 miles, state regulation allows for the replacement of damaged parts with used, reconditioned or after market parts. You can insist on OEM parts, but you will have to pay the difference in cost.

[secondchance]

Great info, Lee.
Thank you.

[LGAFF]

The only reason to use an OEM is if it has a feature not available from aftermarket.....not sure if the rain sensors, etc make a difference

[GOLDCYLON]

Most companies repair glass for free....glass coverage is an endorsement(costs you) you have to buy, otherwise your comp deductible applies...


USAA full glass replacement. Agreed value etc

[Kevin]

USAA full glass replacement. Agreed value etc
i really want to get usaa insurance but it seems i'm not able to

[GOLDCYLON]

i really want to get usaa insurance but it seems i'm not able to


Was your mother or father in the military ?

[Kevin]

Was your mother or father in the military ?

got them for banking, insurance is a no go

[GOLDCYLON]

got them for banking, insurance is a no go


That sucks if they were they could transfer that benefit to you. Its funny when anybody tries to quote me insurance. All I have to tell them is I have USAA which ends the conversation. Nobody can touch em. GC

[VetteMed]

USAA here too... plus FL is a "free" glass replacement state.

[LGAFF]

FL is either the first or second most expensive premium state and the fraud and exposure is so bad the governement started their own program because no one has been able to come in and make it work....and they are losing money hand over fist. Volatility management makes writing home, very difficult to do in FL.

If glass is included, its still buillt into the price......nothing is "free".....I also note that USAA uses Safelite. The advanatage USAA and State Farms of the world have is that they are more of a mutual/Reciprocal; meaning that they have no pressure to return a underwriting profit which allows them to run a combined ratio in excess of 100% and still stay afloat. This also allows them to appeal to a broad spectrum of insures who mutually share risk.

Companies like mine have to turn a profit to stay viable and valuable, meaning we need to turn a combined ratio of 88-90% to maintain an underwriting profit. We can beat USAA and others prices, but we have to do it in a more select market and our ability to underwrite is key to our ability to survive in an open market. Our profits are 5-10% underwriting(premium), the balance has to come from smart investments, namely money invested in city/towns in municipal bonds.

[VetteMed]

FL is either the first or second most expensive premium state and the fraud and exposure is so bad the governement started their own program because no one has been able to come in and make it work....and they are losing money hand over fist. Volatility management makes writing home, very difficult to do in FL.

If glass is included, its still buillt into the price......nothing is "free".....

Agreed, hence my use of quotes around "free" as well. Nobody is giving anything away, especially not when it comes to insurance in FL. I'm not a homeowner anymore (short-sold my home in 2010), but getting homeowner's insurance was a miserable process back then.

Of course, insurers were OK with collecting premiums for many many years with no major losses due to hurricanes. A couple of bad years, everyone is up and out of the state, saying they can't operate profitably. Guess the profit in all those years past didn't mean much.

[GOLDCYLON]

FL is either the first or second most expensive premium state and the fraud and exposure is so bad the governement started their own program because no one has been able to come in and make it work....and they are losing money hand over fist. Volatility management makes writing home, very difficult to do in FL.

If glass is included, its still buillt into the price......nothing is "free".....I also note that USAA uses Safelite. The advanatage USAA and State Farms of the world have is that they are more of a mutual/Reciprocal; meaning that they have no pressure to return a underwriting profit which allows them to run a combined ratio in excess of 100% and still stay afloat. This also allows them to appeal to a broad spectrum of insures who mutually share risk.

Companied like mine have to turn a profit to stay viable and valuable, meaning we need to turn a combined ratio of 88-90% to maintain an underwriting profit. We can beat USAA and others prices, but we have to do it in a more select market and our ability to underwrite is key to our ability to survive in an open market. Our profits are 5-10% underwriting(premium), the balance has to come from smart investments, namely money invested in city/towns in municipal bonds.

Well of course Lee nothing is truely free. Its just a feature of a policy you pay for. Most companies use Safelite. My arugment was my policy is wriiten for original glass at and agreed value.

State Farm always will "SUCK" I had them for many years when I didnt know any better.

I have yet to find ANY insurance company that can beat USAA. Even my home owners policy was half the cost for twice the policy when compared to State Farm.

[LGAFF]

Keep in mind a large Catatrophe eats profits for years on end...and every company pays massive amounts for reinsurance to make sure a large event does not bring down the entire company.

[LGAFF]

USAA is without a doubt one of the best companies around for service....if you can afford CHUBB, they are even better they pay for about everything

[scottfab]

Ive never heard a single positive thing about Satellite glass,all garbage.Depending on what state your niece lives in Id look into filing a complaint with the state.

I think that is key, the state and the repair shop you choose.
In Oregon law you have a right to take the car to whomever you want to do the repair. That shop chooses. If you find a shop that uses OEM then that rules out the cheep windshield.
If the Ins Company want to operate in Oregon they have to go by Oregon rules.

[LGAFF]

Scott, everyone is allowed to choose whatever shop and vendor that they want to use, but the insurance company only owes to pay for LKQ per the contract. As for OR last I knew AM could be used.....

[scottfab]

Scott, everyone is allowed to choose whatever shop and vendor that they want to use, but the insurance company only owes to pay for LKQ per the contract. As for OR last I knew AM could be used.....

Not sure if anyone on this list knows LKQ or AM but..

Best contact Leif page about misleading insurance "in network" repairs.
This is a link to some common slimy practices.
--http://leifs.com/insurance.php

In case you can't reach that link here in part is one FAQ

Can insurers demand I use imitation parts? Click Here

No. Oregon law requires only certified factory quality parts be specified by the insurance company.

[LGAFF]

No. Oregon law requires only certified factory quality parts be specified by the insurance company.


...this is a misleading statement...notice his says factory quality parts...meaning parts equal to factory spec which are LKQ.....I checked and aftermarket parts are still used in OR.

[USAFPILOT]

So if it was the ZR-1 windshield, can we even get ZR-1 glass anymore? I thought it is all gone, and that if I choose to replace I will have to settle for standard C4 replacement junk.

[LGAFF]

tough call, I am guessing every company will treat it differently based upon the contract......you are owed like kind and quality

[mike100]

California does not require glass coverage. It does keep the premiums down, but it hits hard when you take a rock and have to come out of pocket.

I have used safelite before- nothing worse than a sandstorm damage windshield. Glass is really competitive out here due to no insurance coverage below typical deductible amounts.

I rarely have had to pay more than $200 for a windshield.