Reports of suspicious windshield replacements skyrocketing [Sun Sentinel, Fort Lauderdale, Fla.]

Aug. 27--A growing number of pitchmen are turning up on Floridians' doorsteps with a new offer: Replace your vehicle's damaged windshield at no cost to you. All you need to provide is your auto insurance card.

As tempting as the pitch may sound, state regulators, insurance carriers and those in the auto glass industry are concerned about the increasing activity. The practice, they say, is not necessarily illegal. But experts worry that in some cases, the aggressive sales tactics may cross the line into potential insurance fraud, as the solicitors file claims on the spot for damage that may or may not exist.

And that could leave policy holders accountable and with shoddy windshields.

Referrals about questionable auto glass claims to the National Insurance Crime Bureau, which polices fraud for insurance companies, increased by more than 500 percent during the first six months of this year over the same time period last year. Insurers have sent 1,498 suspect claims to the bureau this year, with 51 from Florida -- the third-highest number of auto glass referrals in the country.

"Many people are feeling pressured by salespeople to get their windshields replaced," said Lynne McChristian, the Florida representative for the Insurance Information Institute. The practice may be particularly common here; Florida is one of several states requiring insurance carriers to waive the deductible when replacing damaged windshields for their comprehensive policy holders.

Frank Scafidi, spokesman for the crime bureau, said his organization has been hearing a lot more about windshield replacement operations and that the down economy may be driving the increase. "People may be saying, 'So here is a way we can make some bucks on windshield repairs,' " he said.

The bureau doesn't yet know how many of the referrals are fraudulent. But Scafidi and other consumer advocates say vehicle owners need to call their insurers before agreeing to any windshield repairs or replacements.

Alaric Burn was doing a routine check of his insurance coverage recently when he noticed something odd; a windshield replacement claim for his ex-wife's Mercedes, which was insured under Burn's policy.

When he called to see if she had been in an accident, she told Burn no. But she said a door-to-door salesman, canvassing her neighborhood near Fort Lauderdale, had convinced her she needed the repair and called her insurer on his own.

"She said he looked at the windshield and told her it needed to be replaced, but there was no damage, no nothing," said Burn, who reported the incident to the Florida Department of Agriculture and Consumer Services in January and alerted his insurance company.

Experts said there are serious risks in saying yes to unsolicited offers to replace windshields. One is, the job could go to a second-rate technician who might install a low-quality or even a used windshield.

"The windshield glass supports the roof of a car," said Rick Church, executive director of the Auto Glass Safety Standards Council. "If the installation is improperly handled, it won't protect you in a rollover."

You also could be held partially responsible for fraud if you sign off on a claim stating there was windshield damage when there was none, or inflated the amount of work done or value of the materials used, said Jennifer Hirst, a spokeswoman for the Florida Department of Financial Services.

State insurance fraud investigators last year arrested several salespeople involved with a Jacksonville auto glass company that was installing inferior-grade products but billing insurance companies for top-line glass.

Bobby Futch, vice president of claims for American Automobile Association Insurance, said his company stopped taking windshield claims from third parties earlier this year after they heard about the aggressive sales trend. He advises consumers to safeguard their insurance information, as other carriers have reported windshield salespeople were using policy numbers they gathered to file claims even though the vehicle owners never agreed to the work.

Aggressive windshield replacement sales tactics are known as "harvesting," said David Walker, spokesman for the National Auto Glass Association, an industry organization. Groups of salespeople, some recruited through online classified ads offering to train them, go door to door in neighborhoods, pressuring vehicle owners to let them inspect their windshields. Or they may set up shop at gas stations or car washes, where they can approach customers.

Either way, the pitch is the same: The salespeople point out what they say is a chip or crack in a windshield and then tell consumers they can get a new one "at no cost" -- as long as they have insurance. The glass peddlers then ask for insurance cards and start a claim on the spot.

"It's a practice the industry does not condone," Walker said. "These people are bottom feeders and unscrupulous."

Walker said such businesses first started in Florida several years ago, and spread to other states. Arizona state Rep. Nancy McLain, alarmed by the harvesters she saw trolling for customers at car washes and similar businesses, earlier this year sponsored successful legislation that tightened the regulations for windshield repair and replacement.

Florida, which had almost double the number of suspicious auto glass claims sent to the National Insurance Crime Bureau as Arizona, does not have similar protections in place. The state does not require auto glass technicians to be licensed.

Coast to Coast Auto Glass, the target of Burn's complaint, is based in Arizona and was acquired by TKB Marketing Group in 2009. Coast to Coast's website says that the company operates in Florida, with offices listed in Margate and Casselberry, near Orlando; as well as in at least three other states in addition to Arizona.

When reached by telephone, Coast to Coast marketing representative Rhonda Jacobson initially agreed to talk to the Sun Sentinel about the company, but then did not respond to follow-up e-mailed questions or return phone calls.

Diane Lade can be reached at dlade@SunSentinel.com or 954-356-4295.

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