Allstate Weighs In

Allstate Insurance, the second largest auto insurer in the country, has sent out its Offer & Acceptance terms.

The letter stated its intention is to make the transition to the new NAGS pricing "revenue neutral" for providers and "cost neutral" for it and its insured customers.

The Allstate offer does give $35 per hour labor based on the NAGS installation time and the kit price has been raised $1.

Here is the summary of the offer as contained in the letter.

  Territory A Territory B Territory C Territory D
Current Program Glass Parts Factor -66% -66% -59% -52%
Current Program Labor (Flat) $39 $39 $39 $39
Current Program Kit $21 $21 $21 $21
New Program Glass Parts Factor -17% -17% +4% +27%
New Labor Amount Per NAGS Hour $35 $35 $35 $35
New Flat Kit per claim $22 $22 $22 $22

Allstate's pricing for windshield repair claims remains in effect and is unchanged at this time.

glassBYTES™ has also learned that three smaller insurance companies (GMAC, MetLife, and Erie Insurance) have also sent out their O&A terms, and all include an hourly labor component and are designed to be price neutral with their previous agreements.

This all comes on the heels of yesterday's revelation that Commerce Insurance Co., Webster, Mass., is sticking with the current NAGS pricing come February 28 when the rebalancing is scheduled to take effect.

Some industry sources have pointed out that while they like the Commerce Insurance move to hold off on the NAGS rebalancing, it will also mean having to handle two sets of NAGS pricing (the current and the rebalancing), which could be problematic.

One industry software supplier said that most shops have computers that are two to three years old and don't have the capacity to handle the extra 300 mb that an historical NAGS catalog will require.

To read the Allstate letter in its entirety, click here.

What do you think about the Allstate O&A or the decisions the smaller insurance companies are making? Click HERE to share your thoughts.

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