In my personal opinion...
I feel that Glass coverage is a scam on most cars. The truth is.. Most companies either hide the true cost of auto glass from the customer. I have found that one way or another that glass coverage is about $100 a year without any gimmicks. The true cost of a windshield is on average about $220 but you as the client will pay $220 or about $175 on most Honda Accords, Toyota Camry's, Chevy products, or Ford Products. Your insurance agent should tell you or find out what the real price is. If they do not, they are not working for you. If they blindly give you glass coverage without explaining the difference, they are taking your money.
As an insurance agent, I would make an additional $30-40k a year by selling glass. I only sell it on Mercedes Benz, BMW's, Acura’s, Brand new model cars and various others after I find out the true cost and consider it with the client. Brand new cars usually are dealer only pricing because there are not a lot of manufacturers for that glass yet. After about 2 years the cost of glass goes to about $250 then reduces again.
Why I believe glass is a scam. If you turn in glass claims, they still go on ones record for 3-5 years. If you want to switch to some companies, those glass claims will go against your record. Some companies will say glass claims do not negatively affect your rates. I do not believe this for a moment. One way or another, insurance companies can raise your rates on renewal. It may not be reported as windshields, but if your credit changes, your clean record might get a ticket, you may move, or various other things. Insurance companies need all the info they can to rate a driver.
I can see the correlation between a driver having a lot of windshield claims and rear end car accidents. If someone has a lot of windshield chips in a single year, they generally follow too close. Rarely do senior citizens get glass claims because they are such defensive drivers.
By Arizona law, an insurance company cannot raise your rates for glass claims. However, they can raise your rates for a ticket, red light violation, moving addresses, accidents, or anything else that happens. Why give them the opportunity to penalize you.
Most people with glass coverage do not have a correct amount of insurance coverage. They think 100/300 is awesome coverage. In reality it was 20yrs ago. Today with all the law firms, chiropractors, doctors, and health costs increasing do you really believe it makes sense to carry glass when most drivers are underinsured? I recommend to put that money into your policy to raise your limits in case you are hurt.
Tonight, one of my clients, that I inherited, rear ended another driver. She was hurt and taken to the hospital. Her grand daughter also was injured. She wanted to have her windshield fixed before changing her policy. We just met last Thursday to fix her policy. She agreed with everything I recommended, but wanted that last windshield. She had so many prior accidents that a glass claim was not going to effect her rates.
It’s a case by case situation. Your needs are different than Sally’s, Sally’s situation is different than Bob’s. We are all individuals. The bottom line is your agent needs to go over these items to make sure the important things are covered. A proper policy is never set up in 15 minutes. Some agents do not agree. They may want to turn and burn people through their door. I truly think it takes at least an hour to educate the client.
Please forward this on, because most people will never get the straight answer! As a Realtor or Mortgage lender your clients need the truth. Does the insurance agent you send business to sell a lot of glass? Why?
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