will insurance continue to waive ded.?

[T-Bone]

i have recently got setup with a state farm agent who will send me business my way for a price. 25 1st 10 each additional, seeings how state farm does not waive the deductable where i live.

While getting setup with this agent he said that other major insurance companies will follow what they are doing with not waiving the deductable. He said that state farm always leads the way for other companies.

I talked to another state farm agent and of course he said the same thing.

so my question is this- do these agents know what they are talking about or not?
- has anybody heard of other compainies possibly changing their standards and not waiving the deductable anymore?

[Dave M]

T-Bone,

WOW!! $25 for an insurance repair is way, way too low. Would you explain to us what you mean by getting setup with the agent who will "send" you business for a price. My understanding is this is unethical and steering. Not legal in most states for an insurance agent to use this practice.
State Farm does not waive the repair deductible in most states if not all states.
I have not heard any rumors of other companies following State Farms new policy. Maybe others have?

[T-Bone]

i may have worded this wrong. 25$ for a cash job. This state farm agent said that if any of his customers call him for information on a repair, he would mention my name, and tell them that i do good work for a low price. This is for people who ask him who he would recommend. I know, that is a very low price to fix a windshield, but i got to get my name out and pay the bills.

But my main point that i had was this question: Has anybody heard of any insurance companies that plan on following state farm with their policy of not waiving the deductable? Because this agent made it very clear that some other major companies are watching state farm and are going to see if it is worth the change.
You can see my concern. If this were to happen in the future i may be out of business.

[Dave M]

Don't depend on this agent sending you enough work to make a living. You may receive one here and there, if you are lucky. Will he receive a bunch of phone calls asking for info on a good repair tech? Maybe.........how does he know you do good work?
This agent also knows what State Farm was allowing for repairs before changing their deductible policies. When I get a call from an insured of State Farm and inform them about this change (they usually are surprised). I tell the insured I will charge them what State Farm allowed, $50, which is below my normal retail or cash price. The customer has always been thankful of the special State Farm price I was giving them.
Hopefully you are or have opened other avenues for your business like fleets, dealers etc. etc.
As far as other Ins. Co. following suit, time will tell!

[T-Bone]

This agent knows i do good work cause i fixed his windshield. i have had my own business for almost a year know and things are going great. i probably shouldn't have mentioned how i met this guy and what kind of deal i made with him, because all of that is not relavant. i just had a concern about what he said about the other insurance companies following state farm, that's all. Time will tell. i was just wondering if anybody has heard anything about that. thanks.

[SuperGlassDave]

T-Bone,

Getting your name out and paying the bills is about all you will get out of $25 for mobile insurance calls. Plenty of consumers will look at that low price and equate it to "lower price, lower quality", at least I hope so. One job at a higher price is better than two at the lower. It's more efficient, more profitable and competitive for the consumer.

And, if the all the insurance companies would quit waiving deductible and put the problem in the hands of the consumer, I will jump for joy! Eliminating the network funnel to replacement shops and putting over 60,000 glass jobs per day back on the open market would be preferrable to me. The 60,000 glass jobs only represent the daily claims taken by Safelite and Lynx. I would love the opportunity to compete on an open market for a portion of these jobs and I hope that day comes soon!

Also, any insurance agent's recommendation to a motorist is good. Many of them still refer their customers, when asked, to repairers that they are familiar with. And, some motorists don't want to use their insurance, but will check with their agent for a referal. When one motorist per day equals about $1500 per month, it's worth it to plant as many seeds as possible to grow an eventual six motorists per day.

Dave Casey - SuperGlass

[Windshield Doc]

Just my opinion, but I do not think that other insurance companies will follow State Farm. I find many people leaving State Farm for this and there other anti consumer moves the company has been making lately. (Not having full home replacement anymore). Many people are seeing that State Farm is becoming more interested in making money rather than there customers. As the corporate people make these decisions, it is unfortunate for the agents and customers. When I inform people that State Farm is one of the only major companies in my area not to cover windshield repair they are not happy with State Farm. Many times, I recommend other insurance companies.

[T-Bone]

Thanks windshield doc. i will keep that in mind. and i never thought about it that way before, not having to use safelite or lynx. And your right, 25 and 10 is too low of price. I wouldn't have gone that low but, he said that i would have to beat the price and have the same or exceed the quality of another shop that he was already recommending to people.

thanks again for your input.

[Nomad]

I think in the long run, if State Farm makes money by not waiving deductibles, then we can expect other companies to follow. If they do not, or loose a lot then it could be reinstated. I do think that it would be better for us not to have them involved in the first place. I get really tired sometimes playing their (insurance companies) games with steering etc.

As far as $25 is concerned, it is pretty low, but sometimes you have to do what you have to do as far as pricing is concerned. Here in Yuma we have a lot of RVers that are really frugal, and a lot of Hispanic people that just won't pay a lot for a WSR. We have a lot of Canadians who are used to much smaller prices in their particular provinces, so they generally won't go for anything above $35 or so except on a motor home. In other words, I can be super busy at $25, maximize profits at say $35 or $40, or sit around doing nothing or very little trying to get $50 or more. Probably 70% to 80% of my business comes from Canadians so I can't discount what they are willing to pay. The people from British Columbia seem to be especially frugal.

Advertised prices in Utah are said to be $10. An outfit downtown is advertising $20 and a guy at the truck stop across the highway from me is doing them for $15. Some of the people here are doing really crappy jobs, but the average Joe will go to them once at least to try to save a buck. Sometimes I have to doctor these up after they have been half done. Usually no pit filler either.

[GlasWeldTech]

This agent knows i do good work cause i fixed his windshield. i have had my own business for almost a year know and things are going great. i probably shouldn't have mentioned how i met this guy and what kind of deal i made with him, because all of that is not relavant. i just had a concern about what he said about the other insurance companies following state farm, that's all. Time will tell. i was just wondering if anybody has heard anything about that. thanks.

If things are going great for you as you stated in your above post, then why would you have to whore out the lowball prices? I am all for making money but we need to be striving forward and not backwards...Your mileage may vary.