According to Insurance Business America, your auto insurance premiums are going up, all because of ongoing windshield-replacement schemes. As reported by Ryan Smith of Insurance Business America, these windshield schemes involve drivers with cracked windshields signing over insurance benefits to windshield repair and replacement shops. These shops, through an “assignment of benefits”, will then submit an inflated invoice for the work allegedly rendered.
The Tampa Bay area has become the hub of the fraud and abuse involving these schemes. More often then not, the fraudulent schemes are no fault of the insureds. Florida law states that a deductible cannot be applied to windshield replacement and repair services. This allows these shops to advertise that the work being done is “free” to the insureds. The result of these “free” services has led to over 1900 windshield-claim lawsuits in Florida in 2016 alone; increasing litigation costs and ultimately hitting everyone’s pocket.
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