Auto Glass Claims

Claims involving only the breakage of vehicle glass, without corresponding collision damage, have long been considered a nuisance in claim operations for many major insurance carriers. Because auto glass-only claims represent a small fraction of total auto severity, carriers tend to believe that they can easily outsource these claims in order to focus on the higher dollar cases, such as total loss and auto/medical claims. Claim managers tolerate the relatively high ratio between the loss adjustment expenses (LAE) and the severity of these claims because the overall costs appear to coincide with the amount that can be reasonably expected.

As a result of accepting these terms without thoroughly examining the glass repair process itself, many claim professionals possess a limited understanding of how far the effects of these decisions reach when establishing a glass program. The result is that insurance organizations are often unable to find new efficiencies and thus improve the overall performance of glass claim operations.