Arizona leads the nation in auto glass claims, according to the National Insurance Crime Bureau (NICB). Insurance industry data shows 10% of the nation’s auto glass claims were from Arizona between 2015 and 2019.
“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.
There have been multiple lawsuits where insurance companies have claimed some glass shops bill for windshield repair and replacement services that the shop has not done.
“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,” said Handler. “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.”
The NICB noted it will continue to work with lawmakers in the House and Senate to stop AOB abuse against consumers.