State Farm\'s Decision For The Industry - Your Thoughts

[Delta Kits]

The NWRA is debating it's official position on State Farm's proposed policy of not waiving deductibles for windshield repair anymore.

They are speaking to their own member base, trying to get a feel for how their members view it. This forum's base is much larger than that of the NWRA, so I would like to see members of this forum vote on this informal poll about how they feel about it, so that we may get a wider view.

Feel free to post thoughts about it, as NWRA board members read this forum.

[Jeremiahswindshieldrepair]

I think one of the reasons some people do not join the NWRA is because people feel that they don't represent their point of view in regards to certain issues. This is going to be a big issue that I think will make or break lots of peoples decisions to join or not to join. People are seeing a need for an organization that will support our viewpoint and if they vote the wrong way on this it will alienate many folks and that is not what we need right now frankly.

I voted no because I do/did alot of insurance work. Even if I did not do ins work it still doesn't seem like a good idea financially for an insurance company who is going to continue to do replacements. If they drop glass altogether I can see the reasoning but not as it is. Of course this is probably a step in that direction anyhow.

[scratchy]

I think this is a solution looking for a problem. State Farm customers are generally loyal, smart and know they are paying higher monthly premiums than they could get with another provider but they expect excellent service. Throwing a chip repair bill back on the customer is something Geico or Farmers would do, not State Farm. This move is penny smart, pound foolish and WILL cost them precious market share if they follow through.

[glassfixerCO]

I think in some ways the insurance companies waiving deductibles for repair is bad for the industry as a whole. First, it leads to more competition because entrepreneurial-types are drawn by the practice of setting-up shop in car washes, parking lots, etc. and offering FREE w.s. repair in __minutes to everybody. Anyone trying to compete on the basis of price and/or quality loses most of their business to the aggressive sales pros and or course Safelite Glass Network which intercepts a lot of potential customers by representing the ins. co.s and immediately dispatching one of their own to do the work. If and when the ins. co.s stop waiving ded. and consumers begin paying out of their own pockets there will be a decrease in the typical price for chip repair and an increase in a desire for quality. This will put probably half of the repair-only co.s out of business.

[glassfixerCO]

Those of us who stick it out however (and who don't have people working on commission or otherwise), and who are committed to achieving high-quality repairs and are willing to settle for less than $50 bucks for a typical repair might suceed.

[Gr8tTech]

glassfixer,

so basically what youre saying is that you would like sf to get rid of the deductible thing because it will get rid of those of us that do repairs in parking lots. My repair quality is second to none in my area, and the fact that i do repairs in a parking lot has nothing to do with quality. I do quality repairs because thats how i run my business. I get tired of seeing people on here slamming people who do repairs in parking lots or carwashes. Its just simple competitor bashing.

What youre saying is that if they stop waiving it, your competition will go out of business and the price for a repair will go down, and you see that as a good thing.

Nice

[glassfixerCO]

No offense Gr8tTech. I've also set up in a parking lot and had a small booth near a restaurant with a big FREE WINDSHIELD REPAIR sign next to it a couple of years ago. Some of the people with these set-ups however have simply hired people (usually on commission) to sit at these places waiting for customers, provided them with probably the cheapest equipment on the market, a little bit of training and then they sit back and wait for these poorly trained techs to fax them the successful invoices so they can charge the max to the ins. co.s and split the profits with the tech. It's a great gig money-wise (especially if they have multiple locations), but I don't think it leads to a strong emphasis on quality--especially since the consumer didn't have to pay anything (it's easy to convince someone who didn't pay out of pocket that the repair won't make the chip/crack look any better). If the quality of the work YOU do is "second to none" then you probably won't have to worry about losing business at your tent location, in fact if all ins. co.s stopped waiving ded.s tomorrow and if you'd be willing to charge a little less for your repairs I would imagine it would INCREASE business for you since some of the tent/car wash locations near you WOULD go out of biz. and S.G.C. would no longer be intercepting potential customers from you who call their ins. co. to see if your FREE W. INSURANCE sign is accurate (assuming that's how you advertise). Sorry if I offended anyone else who takes pride in their tent or car wash location.
Cliff

[scratchy]

This is a funny rabbit trail!

Their is only 1 thing that can kill WSR. Drum roll.... The $10 repair that has been happening in Utah as an example. The complete sacrifice of WSR to die as a bait and switch is the end of the road. Some replacement shops have killed replacement prices with free steak dinners and other novelties as a substitute for good marketing and now some want to bait with a $10 repair. If this catches on its the end of retail WSR.
Not State Farm
Not deductibles
Not parking lot tent sites
Not car washes

[CGlenn]

I agree with glassfixer in one aspect. In my area there is a particular company who sets up in several parking lots. I am sure the owner himself does good repairs, but he hires others to work all of these locations and I have seen some of these repairs. The quality is not there. I think if Insurance companies stop paying for repairs and these customers have to pay out of pocket, they will not accept poor quality repairs. There is so much business in my area that there is no need to charge less than $40 to $50 for a repair. This business charges around $25. If this insurance thing goes away, I see my competition having a difficult time. especially if he wants to pay his employees and only charge 25 to 30 bucks for a repair. People tell me that they can get it done by my competition for less money. I tell them you get what you pay for. Every time I am finished, they are happy to pay more for a quality job, especially when I educate them on why it is important to completely fill the damaged area. I am a strong believer in the fact that the looks of the repair DO matter, especially with a cash paying customer!

[Chips_Away_Windshield_Repair]

Thank you Gary!