Arizona’s landscape is evolving rapidly, with constant construction projects reshaping its highways and byways. While the state’s growth brings excitement, it also presents challenges for drivers, particularly concerning windshield damage from debris on roadways. Glass coverage might seem like a safety net against such incidents, but given the current insurance landscape in Arizona, it might not be the most prudent choice to have on your auto insurance policy. This blog explains why.
In recent years, Arizona has experienced a surge in glass claims due to its construction-heavy environment. This sudden increase in claims has caught insurance carriers off guard, The influx of claims has led to inflated costs for insurance companies, resulting in higher premiums for policyholders. Additionally, glass repair and replacement companies often charge steep rates for their services when processing the windshield replacement with an insurance company compared to directly with an owner of a vehicle. This is further driving up expenses for insurers and, consequently, premiums for policyholders.
The Impact of Glass Coverage on Your Insurance Policy:
Although having glass coverage on your auto insurance policy doesn’t necessarily flag you as a high-risk policyholder, there is still wisdom in removing glass coverage from your policy. The issue lies not in having the coverage itself but rather in the increase in claims frequency. In the current insurance market, carriers are wary of any type of claim on your record, including glass claims. The reality is this – Insurance carriers are losing money and glass claims are a part of the losses they are experiencing. While some claims are unavoidable, such as those resulting from accidents, filing a glass claim can often be avoided. As a result, limiting or removing glass claims from your record will prevent some of the potential increases to your auto insurance.
A Strategic Approach: Navigating the Current Landscape
Given the evolving insurance landscape in Arizona, here’s a strategic approach to consider:
Opting Out of Glass Coverage: Removing glass coverage from your auto policy eliminates glass claims altogether. This decision may help keep your premiums lower and prevent you from being categorized as a high-risk policyholder that costs the insurance company money.
Strategic Timing for Repairs: Instead of rushing to replace a cracked windshield, consider waiting until construction projects in your area are completed. This reduces the risk of further damage from loose debris on the roads, potentially saving you from multiple repair expenses.
Paying Out of Pocket: When it’s time to replace your windshield, consider paying for the repair out of pocket rather than through insurance. This allows you to negotiate a better price with glass repair companies and prevents the claim from impacting your insurance record, ultimately keeping your premiums down.
The Bottom Line: Limit glass claims and adapting to change
While foregoing glass coverage and paying for repairs out of pocket may seem different than what you have come to know about auto insurance, it is wise to consider in this current market. Limiting or removing glass claims should ultimately save you money by averting insurance premium hikes from a tattered claims history. By taking a proactive and strategic approach to glass coverage and repairs, you can retain control over a portion of your insurance costs. Remember, the insurance landscape is ever-changing and this a fairly new approach to structuring an auto policy. Although we may not give this specific advice on glass coverage forever, as we write this blog in 2024 we believe it is wise to stay adaptable so you can navigate this market in such a way that limits all the increases being thrown at insurance policies in Arizona.