State Farm To Stop Waiving Deductibles?

[mafsu]

I would argue that it is the replacement companies doing repairs who don't care about the quality and only guarantee to get a replacement job.

[MaryCoit]

Well, that's basically what I was referring to - many replacement companies don't care if their repairs are any good because they make their money from replacements. However I also see lots of botched repair jobs performed by hacks charging 20 bucks or less for a repair. I've actually "re-fixed" several lately.

[V-Glass]

I'm with you 100% Blind Squirrel, I'm sick of all these bozos sittin around under a shady tent (and I mean shady as in not very inviting or professional looking) all day long, putting out nasty repair jobs. IF WE WANT PEOPLE TO RESPECT THIS CRAFT, WE NEED TO DO BETTER THAN EZ-UP TENTS! Get a freakin' shop for christ sake or just be mobile only. This industry needs some regulation bad and I'd be glad to make small sacrifices to see things improve and perhaps alot fewer decrepit looking tents everywhere!

[Repair1]

From what I understand the reason behind State Farm doing away with waiving of deductibles is because of the repair claims skyrocketing. When they started this years ago there goal was to reduce replacements. This has not happened, in fact just the opposite they have gone from One Million Repair Claims per year to Three Million per year and there replacements have only increased not decreased.

The reason this has happened is mainly due to Harvesters this is what State Farm is calling them, you know the car wash guys, tent guys, the guys that go from door to door offering free repairs.

So I blame our industry starting from the manufactures, which will sell a bridge and resin to anybody with cash in hand, NO training required. Sounds like glass wholesalers don

[MaryCoit]

V-Glass don't diss the tents or the carwashs. I go out and get my business myself I work at a car wash and usually if the customer does not have a half hour to hour to fix the windshield I schedule an appointment so as to devout enough time for the repair. None of this five minute and it's fixed crap. I have an ez-up tent I work at a car wash and BtoB and I do it in an ethical manner. My brother David Coit (Coitster) Taught me how to do repairs. Took him 1 month to train me. That might boggle the video trained techs mind. But thats how long it takes. Don't diss people who work at a car wash and get there business pounding the pavement. I have met plenty of people who have been doing this 5 years or more who work out of a shop who don't know what they are doing. And I agree there should be more regulation in the industry but do you really think that will stop people who know how to do a good repair from doing a bad one out in the real world. I don't think so. They are either ethical or not and no laws are going to stop a jerk from spending 5 minutes on a repair! Who wants the shop overhead anyway!

[MaryCoit]

By the way Blind squirrel the state certification is just a way for the state to make money. There is no regular regulation being done by the state. It's just another black whole in the industry adding nothing to it. No matter what anyone does in the industry there are always going to be hacks and a**holes. The state and the insurance companies can't do anything about it other then stop covering the repairs making it harder for good repair techs to make a living. In regards to whether the certificate makes a repair person seem more legit to the customer........maybe it does.......but that just scares me more because then you just have these same people who were doing bad repair before being certified by the "state" and then doing the repair the same way but this time with a piece of paper on there side saying it's a state certified repair when its awful.

[Coitster]

I can actualy pipe in on this. I spent a month training my sister to do repairs and be very very good at it. When she decided to start doing a car wash a few weeks ago it was with the clear understanding that she was not going to speed up her repairs like most companies do at carwashes. Most of the repairs that she does are scheduled appointments so I just wanted to clairify that for those that might think she is just another carwash repair tech (yuck). I trained my sister to do B to B and other forms of marketing and she has done pretty good at it.

For those that don't like B to B thats fine, its entirely mobile that way anyway. I think about the only way to remain profitable is to be mobile and go hunt business down. If you wait for it to come to you, you are going to be in big trouble.

Again the problem is that a lot of techs (sorry to say but most techs) just don't care about the quality of their repairs. No matter how much the state's get involved with it, its just going to ruin the industry more. Government always messes it up. We just have to educate our consumers to watch out for the charlitans and gypsies out there. Thats my two cents.
David
Coitster

[ARG]

After reading the Glassbytes article and comments on this thread, it is clear several things have not been mentioned. At the risk of sounding like an arm chair quarterback, here are my thoughts.

The Glassbytes article indicates that the rumors might not be accurate. Try this thought. State Farm may simply change to waiving deductibles on or below a certain amount, say $100; or they may take a route of waiving deductibles only in some states, possibly those with a high cost of living.

The fact unfortunately is that when rebalance took place, things changed. Many here have a deductible of $500. Insurance companies have waived the deductible to save money. Now then with most windshields now costing below $500, the savings is gone. When you have someone with a deductible of $500 and a windshield replacement is, say $225; when they waive the deductible, State Farm just lost $50 plus additional processing fees by Lynx. I believe most other insurance companies will follow State Farm's lead, what ever that is.

Now then if insurance companies do quit paying for repairs, what will happen? Currently we have the low-ball shops, yet there is plenty of work for those who go after it, have good customer service and look professional. Quality repairs will become important to most, maybe not all. I've seen a funny thing happen here, when someone else is paying for the repair, quality is not as important. However when mr. or ms. car owner is paying, a lot more folks expect a good repair.

What else will happen, well try this:

First, calls to the networks will probably stop. Lynx has reported that 25% of calls that come in ask for a referral. At our favorite network that number is most likely close, but add into it those steered into their shops. That said, there is going to be alot of car owners with chipped windshields looking for a repair person. That's not counting all the car owners who still don't know about windshield repair.

Since there won't be as many calls coming into the networks, those at our favorite network who have been on the front line at stealing our work will be rewarded with a pink slip. What I believe they deserve.

Second those jobs steered into their shops will dry up; I think you can guess what will happen.

The insurance companies may have found a way to eliminate pit repairs, steering and all the fighting and law suits, along with all the other "BS".

At this point I'm very diversified: a little dealer work, rental work, fleet work, cash customers, and insurance work. I don't know about anyone else, but a change to cash for all work may be refreshing. I plan on using my imprinter even more, if insuance work dries up.

ARG

[repare-brise]

Admitatly my comments come from above the border,but they may be valid in this case. In Quebec insurance brokers/agents are renumerated by the absence of claims by there customers. In other words(numbers) 1000 customers making 500 claims means 50% of the pay cheque at the end of the year, same 1000 customers making 250 claims means 75% of the pay, so which train passes El-Paso first? That said my aproach with agents is to educate there customers about the dangers of nusence claims, better to pay $50 now, then get a surprise increase at renewal time. A repair will not raise rates by itself, but combined with a few others could be the straw that breaks the camels back. Once a broker realizes that I indeed educate there customers and they stop getting WS claims, they refer me even more. I am now at a point that I have agents that include my card and brochure with there renewal notices. If you ahve an independent brokers association in your region, they surly have a conferance at some point in the year. What I do(I go to the provicial conferance since I have franchisee's across the province) is go in with a WS on a stand, a lap-top and a info girl. The WS on a stand is to do repairs on , this atracts a crowd and stops them long enough to remember you, get info(card, brochure, letter with mission statement, and price list)from the info person. The lap top runs a DVD of a repair close up, this is fun because on the screen the tip of the injector is 4" in diameter, they see the air move in the break on vacumm, the resin fill the spot on pressure, and the final result on a large scale. Once the broker have heard your speech, read your material you will get calls for in office demo's, and subsequently referals from the agents. If you have no local conferance, set up a breakfast meeting with the owners of the local agencies(they will come out for free food in a good restaurant, negotiate a price with the restaurant owner-food for WS repair), While they eat do a repair, rent a big screen TV and a video camera, set the camera on the inside of the WS and repair whilr they watch on the big screen between bites. Have your info for them to take back to the office, and talk to them about your no-claims objetive, the rest is answering the phone. I have a few agencies that are now suggesting to there customers to remove Ws coverage from there policy($50-$200 savings per year) and call me 1-2 mins after the rock hits, that way the customer saves up front, gets a good repair(unlike most replacement shops) and the broker dramaticly reduces there claims, everyone wins(except the replacement shops.


Merci

[vise357]

Since I do both repairs AND replacements, if State Farm refuses to pay for a repair, I'll just sell waive the customer's deductible for a replacement. So StateFarm can pay $50, or $250, I don't care.