Topic Thread

1.  Auto Windshield Insurance Coverage

Posted 10 days ago

​​Most commercial auto/vehicle insurance policies come with a no deductible windhshield or glass replacement coverage.

My question is this:

Is there a standard that the insurance industry is looking for as it pertains to the number of windshield claims in a policy year?

Such as 10% of the fleet ?   20% ?   30%?   what percent is seen as excessive in the carriers eyes ?



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John Leazer
Controller
Pickens Roofing & Sheet Metal
Spartanburg SC

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2.  RE: Auto Windshield Insurance Coverage

Posted 9 days ago
​I don't know of any "standard" in the insurance industry, but in my opinion, windshield claims should be self-insured.  For our street and road customers, we administrate their windshield claims from a fund created by our contractor-customer.  We're given a set of guidelines to use when evaluating each claim.  Each quarter, we provide a detail of claims we've processed and the contractor then replenishes the fund based on the amounts we've approved on behalf of our customer.

Windshield claims for street and road contractors average 4 per year per $1,000,000 of revenue.

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Jace Pearson CRIS
Senior Account Executive
Beehive Insurance Agency
Murray UT
(801) 685-2899
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3.  RE: Auto Windshield Insurance Coverage

Posted 8 days ago
​Thanks Jace

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John Leazer
Controller
Pickens Roofing & Sheet Metal
Gaffney SC
(864) 582-3485
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4.  RE: Auto Windshield Insurance Coverage

Posted 9 days ago

In talking to my broker about this, his suggestion was not to turn in glass claims as the insurance company looks at these small claims and wonders when the big claim is coming.  This was also confirmed by my personal agent.  I am only speaking about Minnesota, as the insurance industry is ranking their insured based on number of claims.

I am sure there are brokers out there who can articulate this better then I.

_ _

 

 

Bryan Volk

Financial Consultant

Lindstrom Restoration | firerepair.com

bryan@firerepair.com | 763-543-7081

 






5.  RE: Auto Windshield Insurance Coverage

Posted 8 days ago
​Thanks Bryan

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John Leazer
Controller
Pickens Roofing & Sheet Metal
Gaffney SC
(864) 582-3485
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6.  RE: Auto Windshield Insurance Coverage

Posted 8 days ago
I am assuming we are discussing first party claims (where it is your windshield that is damaged).

Full windshield coverage varies state by state.  Some states mandate the coverage as an option, some states don't.  First, windshield "repair" is covered pretty much everywhere without a deductible.  Take full advantage of it.  It is not going to affect your rating basis by much if anything.

To get coverage for the windshield with no or little deductible is a personal risk question.  If you have a high frequency of windshield claims, then there may be adverse underwriting concerns and may cause an increase in premiums.  After all, just like all of you, insurance companies expect a certain margin and if they don't get that margin, they will adjust what they charge or walk away.

Never take the advice of "don't turn in a claim".  If that is your mentality then you should review the coverages you are paying for and consider increasing the deductibles to save money.  If your accountant tells you, you missed a legitimate deduction, is he going to tell you, don't deduct it because it may trigger an audit?  Would you listen anyway?  If your claims frequency is higher than the average, the answer is not to decline the coverage you purchased, the answer is to find out the root cause and correct it because your drivers are causing a "frequency issue."  Typically, if you have good telematics, it will be the same drivers with hard braking (indicating they follow other vehicles too closely).

There is a very valuable saying in the risk management business.

"Retain and control the frequency claims, transfer and insure the severity claims".

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Ronald Hicks CIC, CRIS, CRM
Vice President
Hicks Risk Consulting
Mt Laurel NJ
(609) 314-4182
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7.  RE: Auto Windshield Insurance Coverage

Posted 4 days ago
​Great points.  thanks

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John Leazer
Controller
Pickens Roofing & Sheet Metal
Gaffney SC
(864) 582-3485
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