Clarification on State Farm O&A: Deductible Waiving for Replacements Not in Contract

Yesterday's glassBYTES story regarding State Farm's memo adding states and pushing back the effective date for windshield repair generated additional questions regarding the company's policy toward waiving deductibles on windshield replacement. So much so, in fact, that Bob Bischoff, glass claims service manager for State Farm, called glassBYTES today to help set the record straight.

According to Bischoff, under the old Offer and Acceptance (O&A) program, giving gifts or gratuities to State Farm agents or employees was a breach of contract. As of October 19, with the new contracts, that stipulation has been expanded to include giving gifts to customers (the insureds). Under the new policy, the waiver of a deductible by a shop that has agreed to the terms of the State Farm Offer and Acceptance is considered a violation of the contract and is considered grounds for removal from the program. A company that offers to waive a deductible on a windshield replacement for a State Farm insured is considered to have breached the contract in the same way a company that offers gifts or gratuities to State Farm agents would be.