Michigan AAA Says No to NAGS Change

In another surprise move, the Auto Club Insurance Association in Michigan, which is an affiliate of the state's AAA, has sent out a letter saying that it will not be adopting the new NAGS price list at this time.

Here are the contents of the letter:

February 21, 2005

Dear Shop Owner or Manager,

The National Auto Glass Specification (NAGS) will be rebalancing the glass benchmark price list effective February 28, 2005. The Auto Club Insurance Association will not be adopting the new pricing at this point. The primary reason for this decision is the divide in the industry on embracing the new pricing. Our pricing will remain the same, and will be based on the old NAGS list price.

Below is our current pricing format that was effective July 1, 2004.

Windshields-Domestic/Foreign 57%
Tempered-Domestic/Foreign 57%

Labor (WS & Tempered) $50.00 flat

Installation Materials
o Time Cured Urethane $13.00 ea. kit per NAGS requirements
o Chemical Cure $30.00 per windshield
o High Modules and non-Conductive $65.00 ea. kit per NAGS requirements

Windshield Repairs
o 1st Repair $75.00
o Additional Repairs $12.50
o Maximum Charge $112.50

Windshield repair remains a top priority for the Auto Club Insurance Association. We are striving to increase windshield repairs by offering a competitive repair rate structure.

The Auto Club Insurance Association will continue to evaluate the impact of the NAGS pricing changes and adjust our pricing formula after the evaluation is complete.

If you have any questions, please call Sue McNeil, at (800) 894-6200.

Robert C. McMahon
AVP Corporate Claims
Auto Club Insurance Association

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