This seems like good advice, but many of us have probably ignored this from time to time. For example, have you ever clicked on an online checkbox certifying that you read the Terms and Agreements when, in fact, you didn’t? But consider that when a contractor or repairman says, “Just sign this. We’ll take care of things with the insurance company,” a red flag should go up.
These individuals may be encouraging those with glass damage to sign away the rights of the claims process through an Assignment of Benefits (AOB).
AOB is a long-established legal tool which allows a service provider to collect claim settlement funds directly from an insurance carrier — without having to directly involve the customer. It is intended to be used after the service provider completes emergency repair work.
However, glass damage is a relatively quick and low-cost repair, so signing an AOB isn’t necessary. If signed, you could lose control over the claims process, as well as the workmanship protections you may have through your policy. What’s worse, it could result in an inflated claim — which can drive up premiums for you and others.
Here’s an example of what could happen if you’re not careful.
- A repair shop representative points out that the glass on your windshield or windows is damaged; or after noticing you have glass damage, you reach out to a repair shop before calling your insurance company.
- They tell you that they can fix the damage — and that they’ll deal with the insurance company, so you don’t have to lift a finger. All you have to do is sign the paperwork and give them your insurance card or information. Before, during or after repairing or replacing your glass, they present you with AOB papers to sign.
- Sometime after making the repairs, they bill your insurance company, for several times the amount of what the repair costs.
- They don’t report the claim prior to completion of the work, which is required in your insurance contract.
- The insurance company denies the claim or pays what is allowed by your insurance contract, so the repair shop sues the insurance carrier. (Remember, they are acting on your behalf.)
- Now the issue is taken to the courts, and costs balloon to several thousand dollars in lawyer fees and more.
In this scenario, after signing the papers, your glass was fixed. But, those fixing your glass used this as an opportunity to do much more than just repair your vehicle. In some instances, the repair shop fails to file a claim. Then, they submit an invoice for much more than the cost to repair the glass damage — remember, glass damage is a relatively quick and low-cost repair.
And finally, they file a lawsuit on your behalf costing thousands of dollars in attorney fees. And because of their behavior, your rates and the rates of other policy holders in your area could go up.
The primary benefit offered by these repairmen — “We’ll handle all the paperwork with the insurance company” — is already a quick and painless process, as long as you take one simple step at the beginning: Call your insurance company first.
Although you can use any glass repair shop after reporting your claim, there are 
