Peaceful Coexistence: Political Correctness in the AGRR Industry

I have been a part of the auto glass repair and replacement industry since 2000. Over the course of that span, I have witnessed the influence of the insurers and their partners, the third-party administrators (TPAs), get stronger while the resistance of the independent shops gets weaker. Quite frankly, the independents are getting steam-rolled like freshly laid blacktop. There is virtually no resistance as shop after shop closes its doors, while others standby hoping that they can survive.

Personally, I believe in the free market system; markets operating freely, work best. But I remain steadfast in my opinion that within the auto glass repair and replacement industry there’s no free market, as barriers to entry are dominant, anti-competitive practices prevail, fixed prices exist and insurers have been allowed to make the rules, including directing shops as to what materials to use. TPAs are known to use the manipulation of NAGS part numbers to make the costing of parts favorable to their insurer clients, commonly with interchange part numbers. Even standardized part numbers and pricing isn’t black and white. It is gray and grayer. And their TPA partners continue to usurp power as they remain unchallenged delegating their implied authority. And, to my amazement, independents continue to tolerate it.

The extent of any resistance that I see coming from independents is the exchange of complaints and criticisms, including personal attacks on a glass industry forum. On that same forum, I have read posts from independents boasting how they are in control of their own businesses. My question to them: Are you really? Are you actually servicing every customer that wants to use your shop regardless of how he/she is paying?

Why should the presence of third-party payers be allowed to wreak havoc on an industry whose impact extends into the cash market? Why should the presence of third-party payers be allowed to compromise the safety of the motoring public? Yet it happens every hour of everyday. We are all affected—consumers, shops and industry suppliers, and yet I see no real resistance. In addition, as deductibles increase, any TPA will have the ability to direct jobs, impacting the cash market as well. Why? This will happen because they are privy to the information on an individual’s policy, aware of the amount of any deductible.

Will it matter which TPA? Of course not. Obviously, having this information will allow TPAs the opportunity to steer work to their own shops or shops that are members of their network. Yet, I continue to see no real resistance.

On a side note, and off-topic, have any of you ever been stuck because a TPA told you that the policyholder had no deductible only to find the reverse was true? Or that your customer had insurance coverage, to later discover that he/she did not? And, when you called a TPA, what were you told? The TPA probably advised you that it wasn’t its problem, didn’t it? How about warranty work? How many of you performed a windshield repair or replacement, never aware of any problem, until you were charged back by the TPA? Yet, I see no resistance.

We now have full body scanners at the airports. In the AGRR industry, we have had full business scanners for years, not to protect human life but to protect bottom lines. Yet, I see no resistance.

Recently, we witnessed the influence that a political movement, the Tea Party, had on the mid-term elections. So when individuals come together for a common cause, they have the real ability to affect change. The Tea Party movement was the determination of individuals coming together to literally affect political change across this great nation of ours. So is change within the auto glass repair and replacement market beyond the reach of independents? I personally don’t think so. But apparently many of you do, because I see tolerance and no real resistance.