How Allstate's Offered Price Reduction Could Change the Industry

Glassbytes.com always hears a fair amount of discontent about the state of auto glass pricing and where the problem lies. A look at the changes in pricing insurance companies have had in response to the latest NAGS pricing changes might prove illuminating. While the change in NAGS pricing was relatively neutral (less than one percent), it looks like Allstate is actually lowering its proposed pricing by five percent. Last week, glassBYTES.com™ reported that Allstate Insurance had revised the proposed pricing it offers auto glass shops participating in its Glass Claim Express program, dropping what it's willing to reimburse to 22 percent off of National Auto Glass Standards (NAGS) pricing.

What will this do to the industry? glassBYTES staff members compared the prices of the 20 most popular part numbers under the current NAGS calculator with the Allstate discount, with the prices of those same 20 parts under the previous calculator and the 17 percent discount Allstate had announced prior to the rebalancing (see Allstate Weighs In, February 3, 2005). The NAGS pricing showed minimal change, prices increasing by an average of $1.35 per windshield or less than 1 percent. Those same prices, subjected to the Allstate discount, dropped an average of $8 or more than 5 percent per windshield.