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Auto glass claims have long been viewed as nuisance claims by many carriers, but that nuisance has become the plague of the insurance industry. Claim harvesting, litigation, and price gouging are the culprits. The recent surge of auto glass claims has caught the insurance industry off-guard.

While frequency skyrockets with no signs of improving, historic underwriting models no longer apply. However, looking more in-depth at the antidote actually provides clarity about the original cause of the disease. It is common to waive the deductible for glass repairs because the severity is much lower than if the windshield is allowed to completely crack out — which would require a replacement. How then, is it possible that this remedy, which is intended to lower severity, has become a cancer that drives claims off the charts and increases costs to the carrier?

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