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| Dear Concerned Industry Colleague, The Independent Glass Association (IGA) recently met with attorneys from the Department of Justice (DOJ) on Monday, April 14, 2025 to address significant concerns related to the Safelite Group that includes Safelite Solutions, a dominant third-party administrator (TPA) in the automotive glass insurance claims market. Key Issues Discussed: Dual Role of Safelite: Safelite Solutions acts both as a third-party administrator for insurance claims and a provider of glass services (Safelite AutoGlass). This dual role creates a potential conflict of interest, enabling Safelite to steer customers toward its services unfairly. Customer Steering: Consumers contacting their insurance companies are often unknowingly connected to Safelite Solutions, which aggressively promotes Safelite AutoGlass shops over independent competitors. Instances include automated follow-up emails from Safelite AutoGlass misleading customers who had selected independent providers. Pricing and Market Control: Independent shops are forced to accept pricing dictated by Safelite through contractual agreements, often resulting in substantial discounts off benchmark pricing (NAGS – National Auto Glass Specifications). Safelite’s substantial buying power further disadvantages independent shops, which pay higher wholesale prices for glass. Unfair Payment Practices: Independent shops frequently experience short and delayed payments from Safelite, averaging around 60 days for compensation. Conversely, Safelite AutoGlass potentially and inherently receives quicker, sometimes inflated, reimbursements from insurers due to the presumed contractual method of guaranteed average invoice price. Inspection and Authorization Procedures: Independent glass shops frequently must undergo rigorous, time-consuming inspections and authorization processes managed by Safelite, a requirement that is known to not be equally enforced upon Safelite AutoGlass locations. Industry Influence: Safelite’s influence extends into legislative frameworks like the NCOIL Motor Vehicle Glass Model Act, where their input significantly shapes regulations, notably omitting controls on TPAs and their “strategic partnership” with the National Insurance Crime Bureau whom they share shop/claim data with. Market Impact: The transition of major insurers, such as State Farm, from alternative TPAs to Safelite Solutions has markedly reduced referrals and business for independent shops, significantly impacting their revenue. Next Steps: The DOJ has expressed serious interest in these allegations and is now internally reviewing the provided information to determine if a formal investigation will proceed. This next stage would involve collecting evidence, interviewing industry participants, and potentially initiating legal action against anti-competitive practices. The IGA continues to actively work with legal counsel and industry experts to assemble evidence, update best practices, create consumer awareness, and pursue legislative efforts across all states. We need the assistance of all independent glass shops in the form of reports of steering, late or short-payments, authorization issues, and more. Additionally, the IGA welcomes donations of any amount to support these crucial advocacy efforts. CLICK HERE TO MAKE A DONATION TODAY! We will continue advocating on behalf of independent auto glass shops and ensure transparency throughout this process. Stay tuned for updates as the situation develops. Warm Regards, Gary Hart Executive Director Independent Glass Association We’re asking for your donation to help fund this ongoing advocacy effort. Thank you to all that have donated and continue to support our industry. |
