The Consumer Protection Coalition (CPC) and National Insurance Crime Bureau (NICB) today jointly released two new video public service announcements (PSAs) warning consumers about alleged Assignment of Benefits (AOB) fraud and abuse on auto glass claims. These PSAs, available in English and Spanish, are intended to raise awareness and help protect Florida consumers from falling victim to auto glass insurance scams.
Auto glass and collision repair facility operators that have their customers assign the benefits to their claim to the repair facility typically do so to secure higher labor rates than insurers are willing to pay or to reduce or avoid discounts demanded by insurers. Having been assigned the benefits of a claim, the repair facility can file suit against the insurer to receive higher payments.
The 30- and 60-second video spots explain the insurance industry perspective on how “windshield bullies” and AOB auto glass scams work and encourage consumers to contact the Florida Department of Financial Services if they believe they have been a target of fraud or abuse.
The 60-second English language version is embedded below.
“Filing a fraudulent insurance claim in Florida is a crime, even if it’s a small claim like an auto glass repair or a complete windshield replacement when there was no damage to your vehicle. This is occurring every day in Florida as consumers are being solicited and offered inducements to file false or inflated auto glass insurance claims,” said Alan Haskins, Vice President of Government Affairs for the National Insurance Crime Bureau. “NICB supports The Consumer Protection Coalition in warning the public of these scams that take advantage of Florida consumers.”
Information compiled by the Florida Justice Reform Institute, using state databases, shows that AOB auto glass abuse continues to be a major problem for Florida consumers, with more than 27,000 lawsuits filed in 2020, an increase over the prior year. Just 30 attorneys accounted for 100 percent of all AOB auto glass lawsuits during the year, with one attorney alone accounting for 8,727 lawsuits. About 37 percent of the lawsuits were filed in Orange County, 32 percent in Hillsborough County, 13 percent in Dade County, and the remainder in Seminole, Volusia, Broward and Duval counties, even though there’s no evidence that more windshields are breaking in those counties than others across the state.
“Windshield replacement lawsuits continue to swamp the courts,” said William Large, President of the Florida Justice Reform Institute. “Vendors use assignments to seize the policyholder’s rights and benefits and file expensive lawsuits based on inflated claims. Many of these lawsuits even happen without the policyholder’s knowledge or informed consent. The Legislature acted boldly in 2019 to address a similar problem in property insurance claims, but out-of-control auto glass lawsuits continue to cost consumers more money.”