Progressive has issued its O&A letter to participating glass shops. The company started faxing out the letters yesterday. The following is a copy of the letter sent to Rate A and B shops. Another shop got a rate of 24 percent off NAGS in his market, but he only gets $20 for the urethane kit. To comment on the Progressive O&A, click HERE
Progressive National Glass Unit
Dear Shop Owner/Manager:
We continue to appreciate the glass service you are providing to Progressive's policyholders and claimants. We recently conducted an analysis of fair market pricing and have concluded that an adjustment to Progressive's Fair and Reasonable pricing structure is appropriate at this time. In order to facilitate timely payment of invoices and avoid misunderstandings, we are informing you of our updated pricing standards. These prices are not the lowest available to us; however, we believe they represent fair and reasonable prices for the market.
The pricing structure is as follows effective for services performed on or after the February 28, 2005 NAGS rebalancing:
While the actual invoice costs for individual vehicles may increase or decrease as a result of this change, Progressive has attempted to keep price levels unchanged in total.
The prices listed above supersede any prior pricing agreements with Progressive. However, if you have previously negotiated an agreement with a local Progressive claims branch, and if that agreement provides for larger discounts than those listed above, then you should continue to honor your agreement with the branch for any glass work done in conjunction with a collision or comprehensive claim that includes damages in addition to glass.
Safelite Solutions LLC is administering our glass program. Customers should
report their claim to 1-800-PROGRESSIVE, so that coverage can be confirmed, before
any work is begun. Payment will be made promptly if a claim is opened, coverage
is in order, and invoices are complete and accurate and are not billed at rates
higher than this pricing structure. Send invoices to:
No reproduction, in print, electronic or any form without the expressed written permission of
Key Communications Inc. 540-720-5584.