Allstate Announces Pricing Reduction

Allstate Insurance Co. has announced a pricing reduction for all of its Glass Claim Express participants. In a fax sent to participants, it attributes the price reduction to "increased competitiveness in both the auto glass and insurance industries."

Effective September 28, the following discounts will be in place for windshields and tempered glass. The company says there will be no changes to its labor prices, installation/kit materials or windshield repairs.

Territories
Windshields
Tempered
A
30 percent off NAGS
30 percent off NAGS
B
30 percent off NAGS
30 percent off NAGS
C
14 percent off NAGS
14 percent off NAGS
D
6 percent off NAGS
6 percent off NAGS

Mike Russo, controller for Thru-Way Glass in Syracuse, N.Y., says the amount of the increase in discount—6 percent in his area—was what surprised him.

"Normally Allstate has been increasing around 2 percent for NAGS revisions. They went from 24 to 30," he said.

Russo since has sent a letter to Edward Liddy, chief executive officer for Allstate, in which he questions the pricing.

"Mr. Liddy, your company's new agreement is instilling an unfair financial burden on those glass shops providing a 'quality' service to your insureds—-quality service that we refuse to compromise," he writes. "Rather, your company is catering to the predators preying in the auto glass industry by ensuring that you pay the lowest price without regard to the service provided. You are rewarding the 'trunkslammers' serving the industry."

CLICK HERE to read the full text of the notification from Allstate.

CLICK HERE to discuss the revisions and other topics.

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