They roam Florida parking lots and carwashes in search of cars with damaged windshields, often bearing gifts; gift cards, steak dinners and discounted hot tubs are the common ones.
Insurance companies call them “harvesters,” and their sales pitch to car owners is simple: Auto glass shops can offer free windshield replacements because it’s covered by comprehensive insurance. All they need is a signature.
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But after the signature is collected and the repair is made, the glass shops send exorbitant bills to insurers, who often deny or pay out a lesser amount for the claim. Lawyers then sue the insurance company for payment and the cost of legal fees, often settling hundreds of lawsuits at a time for a hefty sum.
It’s all part of a network of out-of-state companies and lawyers that have carved out an entire industry based on these glass replacements — so costly to insurance companies that it has caused rates to skyrocket across the state, consumer advocates say.
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The tactic is common only in Florida, where more than 46,000 auto glass lawsuits have been filed so far in 2023, according to data from the state’s Department of Financial Services.
Laws meant to protect consumers have fueled the trend, which has exploded over the past several years — only 591 such Florida lawsuits were filed in 2011. Advocate groups point to the burgeoning industry of “unscrupulous” auto glass shops and lawyers as a leading factor behind the state’s high insurance costs.
The lawsuits have been inflaming an already bleak auto insurance market in Florida — a state whose average auto insurance premium of $2,560 is the highest in the country. The issue of auto glass litigation has become so dire that legislators have passed two laws in the past year to try to slow it down.
While car insurance rates are rising faster than inflation nationally, Florida’s increases have been the most drastic — the average premium today is 88 percent more expensive than a decade ago, according to figures from industry data firm Insure. Insurers have blamed the costly premiums on hurricanes and a high percentage of uninsured drivers, but the companies seldom mention that they also are passing on the cost of auto glass litigation.
When Florida resident Francinete Borgstrom was approached last December in an Orlando parking lot by an auto glass salesman, the offer “didn’t sound any alarms,” she said. The salesman told her that Auto Glass America could replace her broken windshield without a deductible, so she signed the waiver with no questions asked.
Borgstrom said she didn’t realize that when she signed away her assignment of benefits — that is, authorized the glass repair company to assume her rights under her insurance policy to seek payment for the work — she also gave the shop the right to sue the insurer in her name if necessary. Auto Glass America did just that when the insurance company, AssuranceAmerica, refused to pay the bill of $1,461. That price is more than four times the average cost for that type of repair, based on figures cited in a lawsuit filed against the same repair shop by another insurance company, Allstate.
These glass shops primarily target older people, immigrants and nonnative English speakers, consumer advocates said and court records suggest. Borgstrom, who immigrated to the United States from Brazil, did not know a lawsuit had been filed in her name until she was contacted for this article.
A representative from Auto Glass America declined to comment on its business model but said the company no longer offers gifts in exchange for servicing. The other glass repair shops mentioned in this article did not respond to requests for comment.
“Not only will it most likely lead to a higher rate at their next renewal date, but it has the potential to generate a nonrenewal at the end of their current policy period,” said Mark Friedlander, director of communications for the Insurance Information Institute. “The average $30 repair could be a six-figure impact on an auto insurance company.”
Insurance companies call them “harvesters,” and their sales pitch to car owners is simple: Auto glass shops can offer free windshield replacements because it’s covered by comprehensive insurance. All they need is a signature.
Get a curated selection of 10 of our best stories in your inbox every weekend.
But after the signature is collected and the repair is made, the glass shops send exorbitant bills to insurers, who often deny or pay out a lesser amount for the claim. Lawyers then sue the insurance company for payment and the cost of legal fees, often settling hundreds of lawsuits at a time for a hefty sum.
It’s all part of a network of out-of-state companies and lawyers that have carved out an entire industry based on these glass replacements — so costly to insurance companies that it has caused rates to skyrocket across the state, consumer advocates say.
ADVERTISING
The tactic is common only in Florida, where more than 46,000 auto glass lawsuits have been filed so far in 2023, according to data from the state’s Department of Financial Services.
Laws meant to protect consumers have fueled the trend, which has exploded over the past several years — only 591 such Florida lawsuits were filed in 2011. Advocate groups point to the burgeoning industry of “unscrupulous” auto glass shops and lawyers as a leading factor behind the state’s high insurance costs.
The lawsuits have been inflaming an already bleak auto insurance market in Florida — a state whose average auto insurance premium of $2,560 is the highest in the country. The issue of auto glass litigation has become so dire that legislators have passed two laws in the past year to try to slow it down.
While car insurance rates are rising faster than inflation nationally, Florida’s increases have been the most drastic — the average premium today is 88 percent more expensive than a decade ago, according to figures from industry data firm Insure. Insurers have blamed the costly premiums on hurricanes and a high percentage of uninsured drivers, but the companies seldom mention that they also are passing on the cost of auto glass litigation.
When Florida resident Francinete Borgstrom was approached last December in an Orlando parking lot by an auto glass salesman, the offer “didn’t sound any alarms,” she said. The salesman told her that Auto Glass America could replace her broken windshield without a deductible, so she signed the waiver with no questions asked.
Borgstrom said she didn’t realize that when she signed away her assignment of benefits — that is, authorized the glass repair company to assume her rights under her insurance policy to seek payment for the work — she also gave the shop the right to sue the insurer in her name if necessary. Auto Glass America did just that when the insurance company, AssuranceAmerica, refused to pay the bill of $1,461. That price is more than four times the average cost for that type of repair, based on figures cited in a lawsuit filed against the same repair shop by another insurance company, Allstate.
These glass shops primarily target older people, immigrants and nonnative English speakers, consumer advocates said and court records suggest. Borgstrom, who immigrated to the United States from Brazil, did not know a lawsuit had been filed in her name until she was contacted for this article.
A representative from Auto Glass America declined to comment on its business model but said the company no longer offers gifts in exchange for servicing. The other glass repair shops mentioned in this article did not respond to requests for comment.
“Not only will it most likely lead to a higher rate at their next renewal date, but it has the potential to generate a nonrenewal at the end of their current policy period,” said Mark Friedlander, director of communications for the Insurance Information Institute. “The average $30 repair could be a six-figure impact on an auto insurance company.”
