State Farm to Waive Deductibles for Repair Again

On November 28, State Farm announced changes to its policies for comprehensive coverage of windshield repairs.

Beginning December 1, the comprehensive coverage deductible will no longer apply for windshield repairs for all glass-only windshield damage for State Farm claims.

State Farm says windshield replacements are still subject to the applicable comprehensive coverage deductible. The company adds that the change will be considered an expansion of coverage.

The insurer sees repair as a viable option and expects retailers to perform repairs when conditions exist for repair over replacement.

Mike Schenian of City Auto Glass says State Farm is “obviously seeking the least expensive way to close the claim, by waiving the deductible for repair, many policyholders will certainly choose repair.”

Linda Rollinson of Superior Auto Glass of Tampa Bay, Fla., and chair of the executive committee of the National Windshield Repair Division agrees.

“With the insurance being so uncertain, with rising costs across the board, I think people are going to be more reluctant to file a claim,” she says.

According to Jacques Navant of Don’s Mobile Glass, insurance claim costs have risen quickly, and insurance companies were unprepared for the sticker shock.

“I’m not sure if insurance providers were ready for the spike in technology and the cost/maintenance involved in maintaining advanced safety systems,” Navant says. “This will be an issue not only for glass shops. The more vehicles become advanced, the more expensive it will be to keep them safe and on the road.”

Several years ago, State Farm stopped waiving deductibles for rock chips due to what it saw as rampant fraud in insurance claims. One auto glass shop owner said State Farm shot itself in the foot with the move.

“They double screwed themselves,” he says. “In theory, it gets rid of the scammers. However, it caused a loss of their customer base due to higher glass claims due to all the technology.”

He says most people with a $100 deductible would not pay $90 for a repair when they can get a total windshield replacement for another $10.

This article is from glassBYTEs™, the free e-newsletter that covers the latest auto glass industry news. Click HERE to sign up—there is no charge. Interested in a deeper dive? Free subscriptions to Auto Glass Repair and Replacement (AGRR) magazine in print or digital format are available. Subscribe at no charge HERE.

This entry was posted in glassBYTEs Headlines, glassBYTEs Original Story and tagged , , , , , , , . Bookmark the permalink.

3 Responses to State Farm to Waive Deductibles for Repair Again

  1. Kris Griffin says:

    Well, here we go again… They are going to be back using Repair ratio for claims volume on shops that are on the O&A agreement Unfortunately, very few carriers are high-quality anymore as more and more carriers are entering secondary coverage with higher loss ratios with a more risky claims potential portfolio. They also are not rating vehicles equivalently, so the premium for a model car without Adas is the same as a base model vehicle with ADAS. So the symbol doesn’t change on the car, but the cost to repair that car is higher yet. The insurance premium is not calculated accordingly. I think this problem is only going to grow worse as the premium calculation model in the last few years has been very, very flawed, especially because you can buy an F150 XLT “base” F150 XLT with the luxury high technology package, and the insurance premium will be identical because they have no way of establishing what equipment is on that vehicle due to the options packages. This is why OEM partnered insurance is becoming a big thing because the manufacturer can provide what exact options are on that vehicle as per the original window sticker. Also, the claim that many manufactures make that ADAS lowers claim severity as in a certain regard a farce as the systems that get damaged are very costly to repair/replace with calibration programming and radar units being highly expensive.

    • markh says:

      I’m waiting for 20 years from now when all those ADAS systems are malfunctioning and driving cars off the road with no real remedy now that the OEM has ‘obsoleted’ all the parts.

  2. Eljay says:

    I had mine replaced in Florida today for $0 deductible, and I have State Farm. So what’s up with that?

Leave a Reply

Your email address will not be published. Required fields are marked *