Despite being fourteenth in total population, Arizona leads the nation in auto glass claims, according to the National Insurance Crime Bureau (NICB).
Insurance industry data shows that between 2015 and 2019, 10% of the nation’s auto glass claims were in Arizona. In fact, more auto glass claims are filed in Arizona than California or Texas; states with respective populations 5.5 and 4 times larger.
“The fact that auto glass claims have increased 26% over the last five years suggests that there may be a rise in fraudulent activity in Arizona,” said Howard Handler, NICB’s government affairs director.
Fraudsters continue to target Arizona, as they look to take advantage of policyholders by convincing them they need a windshield repair or replacement – when they might not. Some glass repair companies bill for services and never actually replace the windshield, or often replace windshields that do not have damage.
“In many cases, these fraudulent auto glass companies are convincing consumers to sign an assignment of benefits (AOB) form, which means you are giving the auto glass company the right to file an insurance claim, make the repairs, and collect any insurance payments. The problem is these companies are turning this into a lucrative business by inflating the insurance claim, and collecting the money for themselves. This type of AOB abuse is a scam and must be stopped,” added Handler.
These lawsuits are driving up costs for consumers, as we all pay for this abuse in the form of higher insurance costs. NICB will continue to work with lawmakers in the House and Senate to stop this type of abuse against consumers.
National Insurance Crime Bureau
Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, learning and development, government affairs and public affairs. The NICB is supported by more than 1,400 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $496 billion in insurance premiums in 2018, or more than 81% of the nation's property-casualty insurance. That includes more than 92% ($254 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.