What is Auto Insurance Glass Coverage?
Glass coverage is a protection that helps policyholders pay for the cost of repairing or replacing damaged glass in their vehicles. While the specific frame of coverage included in standard auto policies will vary from one provider to another, many glass coverage plans will encompass damage to all of the following parts of an automobile: Worn, scratched or damaged glass can be repaired, but complete breakage that renders glass surfaces inoperable usually means a replacement. Even so, replacements can be extremely costly , making glass coverage a great boon to policyholders who experience significant vehicular glass problems. Whether or not an insurance company requires deductibles to be paid for glass coverage damages will vary based on the company that writes the policy, but typically these deductibles are considerably lower than most deductibles for other types of coverage. A dedicated glass coverage plan is a great way to protect your vehicle against the high costs of glass damage and breakage if you find yourself driving on the roads of Arizona. Be sure to consult with your insurance carrier to determine whether or not you have adequate coverage for vehicular glass breakage.
Understanding Regulation of Arizona Glass Coverage
Arizona’s glass coverage rules are unique across the country. Glass coverage is mandatory in all property policies, without the option of having one provision supersede another. Even if a policy has lower limits for glass coverage or provides discounts for not purchasing glass coverage, those don’t apply to Arizona policies. Arizona coverage, and state law, also specific that costs eliminated by the valuation method must be included in the policy price.
Arizona law is specific on the determination method used for glass coverage costs. Determining the proper limits of liability for glass is often complicated by determining whether the building is insured at value and what the actual restoration cost is. The restoration cost is not equal to the replacement cost because it does not include costs such as demolition and debris removal. During the claims process, the insurance company may determine that the value of the glass is only $2,000 when the actual value of the glass in place is $12,000. If the insurer is liable for the full value of the glass, the insured may have a claim for additional recovery through bad faith if only the lower $2,000 is paid. Insurance companies should recognize that both policies and Arizona law require full payment for the cost of the restoration even though it is purely partial.
Arizona law does not determine the timing for compensation of broken glass. As a result, different interpretations exist among insurers. Some view broken glass as personal property, which means it would be deemed lost at the time of the occurrence. Other insurers argue that the restoration requirement should be the proper method, which allows them to prorate the original replacement value method over the life of the glass. This will often result in less money being recovered by the insured than they would otherwise be entitled to.
Provided that insurance companies properly value the policy and properly read the contract, the above methodologies should not be used. Generally, the reasonable restoration cost should be construed as the proper method of valuation of the policy and the trust method should be adopted.
Arizona also has laws requiring specific language within the policy contract itself. Insurance policies for risk in Arizona must contain mandatory policy language (A.R.S. § 20-114). Additionally, the Arizona Department of Insurance may require other language to deal with specific needs of policyholders.
Is Glass Coverage Required in Arizona?
Determining what the law requires is always a good place to start when asking questions about the scope of coverage. Arizona does not require insurance companies to include glass coverage. The insurance companies can offer it, but it is not mandatory. This means that the company can limit the coverage, as well.
This does not mean that a vehicle owner cannot have glass coverage under a policy. An insurance company can offer a policy that requires an additional premium for glass coverage. If this is the situation, then it is up to the vehicle owner whether or not to pay that extra charge.
What happens when an insurance company includes the glass coverage as part of the premium but then denies that the nature of the claimed glass damage was not covered? The straightforward answer is that the insured should file a complaint with the Arizona Department of Insurance. It is the Arizona Department of Insurance that licenses these companies and spends a lot of its time resolving consumer claims of this nature.
If the insurance company included the glass coverage in the automated price quote and then accepted a payment from the insured for that coverage, it may be bound to cover the damage.
So, if an insurance company did not specifically list the glass coverage as part of the quote for the premium and then refused to cover the damage, the vehicle owner should not be out of luck in this scenario. The consumer should consider filing a complaint as that is always the first step in the process.
The scene above is the same even if the damage was to a windshield, a back auto window, or a side auto window. The scenario is the same if the insurance company denies paying for the replacement of a window that shattered or cracked due to a motor vehicle accident.
Arizona law only requires a company to sell enough insurance that a consumer can legally operate the vehicle. Arizona does not require insurance companies to sell other products such as glass insurance that may be needed to protect the car, its occupants, or other vehicles on the road.
Implications of Not Having a No-Deductible Glass Coverage Endorsement
No-deductible glass coverage is a somewhat rarer form of coverage but not something that is reserved for those with special types of policies or special insurers. No-deductible glass coverage is available from all of the major and many of the smaller insurers in the state. It is simply a provision in the policy which excludes any deductibles applying to glass coverage or that limit recoveries for glass, usually to something like $100. No-deductible coverage means that whatever the insured value of the glass is, up to the limit of the policy, they will receive full reimbursement without the deduction of a deductible and without any caps.
The advantages of no deductible glass coverage are obvious. The insured can replace the damaged glass without worry. They do not have to be concerned with price shopping for a competitively priced glass replacement. That is something that unquestionably a cost will be imposed by the insurer and must be borne by the insured.
The downside of no-deductible glass coverage is that it comes with broader exclusions. A common insurance exclusion is for vandalism or malicious mischief. With some insurers, even vandalism can have a deductible. This can easily become a situation where two perils combine to create a loss. For example, if something is thrown through the window but an object also strikes the window it could be that the object hitting the window was, for example, a rock thrown by a minor child and would be covered as an accident. In that case the deductible could apply. Thus the insured could find themselves in a position where the vandalism exclusion applies leaving nothing to recover without a deductible. While this may seem odd, the fact is that most courts view these scenarios as two separate and distinct causes. That is, if the rock had not struck the glass, the glass may not have broken, or at a minimum the damage to the glass would not have been as severe, but the glass may not have broken at all for no other reason and broken because someone decided to throw something through it. When the cases get to court, the courts are likely to find that the stone was not the cause and the broken glass is not covered. Therefore, the insured is left in a position of having no recovery at all.
Again, while there are pros and cons to no-deductible glass coverage, it remains a coverage which is commonly available and routinely purchased by the insured. Because of the limited risk, glass coverage is relatively inexpensive. It is important however that the insured have entire clarity of exactly what the glass coverage is and the extent of the coverage.
Making an Arizona Glass Coverage Claim
For those with an auto or homeowner’s insurance policy, chances are good that it includes glass coverage. Glass coverage falls under the broader category of comprehensive auto insurance. Comprehensive insurance covers your vehicle or home from a wide range of threats. Physical damage to a car from a variety of causes is included, as is loss or damage due to fire, vandalism, theft, and weather conditions.
A cracked windshield is usually in play with the first category. If it is not a bad enough crack that you must replace the entire window, the repair might be too expensive and time consuming to be handled by the insurer. In many instances, you are not required to file a claim for such minor damage at all. The desire of insurance companies to be seen as customer friendly gives you some leverage in dealing with a broken window.
You should begin by calling around to glass repair shops to get a couple of quotes. The shops will come to your house to inspect the damage and determine whether it can be repaired. Some companies specialize in just repairing a small crack without replacing any glass. Typically, they bill insurers directly so you don’t even have to handle the insurance claim process. The job usually takes less than an hour. You want to feel confident that the company you choose is capable, licensed and trustworthy. You don’t want to wind up with worse damage to your door or window than you had to begin with. The goal is to leave with repaired glass and no concerns about safety or service.
You can also contact your insurance company directly. All auto policies and many homeowner’s policies offer this coverage. It is possible that you will never have to go through the headache of filing a claim if it is paid out without having to file . Even so, everybody should have a road map when filing a claim.
When you do call to file a claim, you will be asked questions that help determine how much the claim payment should be. Your automobile or homeowner insurance provider should have their own process for documenting and processing these types of claims when they are received. You just provide information about your premium payments and your selection of glass coverage.
Most of your damage would probably be covered under your deductible since the damage is likely to be too small to have the amount owed calculated by your insurer. However, you should at least run the numbers by your insurance company, and they will fill in the blanks. If a deductible is not a factor, then you will be given the details of how the claim will be paid.
If your insurer is paying for more than one claim, they may need to sign off on the repairs to be completed before the work begins. They may want a signature to authorize the work or for the contractor to show them the completed work before cutting them a check. These stipulations are rare but might be added if you have more than one broken window and the total value of all of the claims exceeds $1,000 to $2,000, or the property involved is worth a lot of money.
You shouldn’t have a problem with filing a claim for glass coverage in Arizona. These laws work in favor of the insured consumer. In the great majority of cases, the consumer is barely involved with the entire process. It should be the responsibility of the insured to make sure his or her damage is fully covered by valid insurance. The insurance company should not try any tricks to undermine this process.
Common Arizona Glass Coverage Myths
When it comes to insurance, there are several common misunderstandings and misconceptions that regularly arise about glass coverage in Arizona. One of the biggest and most widespread concerns is the perceived need for a separate add-on for glass coverage on their automobile insurance policy, when the fact is, that most policies already include glass coverage to some extent. While it is important to be aware of exactly what your auto insurance may or may not cover, it is equally important not to add on unnecessary riders to your policy, in order to protect your wallet and your rights during a future insurance claim.
Another misconception is that glass coverage is a form of comprehensive collision coverage, when it is actually a rider that has been added to comprehensive collision. Comprehensive collision coverage typically does have greater limits than standard comprehensive policies, but that does not mean that if you have a specific rider for glass coverage then you cannot go above that limit in case of damage. However, if you more frequently use the roadways in and around Phoenix and Scottsdale then your coverage is more at risk.
Vehicle owners often think they can get a windshield replacement covered quickly and easily, however with many different forms of insurance policies on the market in Arizona, the limits on coverage for windshield and glass replacement coverage can vary wildly. It is advisable to consult with an attorney who understands the ins and outs of Phoenix insurance law to avoid being short changed or surprised by an insurance carrier ride around.
Choosing the Right Insurance Company for Glass Coverage
When choosing an insurance provider in Arizona for glass coverage, it is important to understand what you are buying. In the past five years, many new companies have entered the "glass only" insurance market. The most prominent are group policies that cover large industries with lots of glass. Some of these companies are "Un-bonded" meaning they don’t have an A.M. Best Rating. For example, the A.M. Best rating for an unbonded insured risk is usually an "X" meaning; You do not have a secure company. When you are choosing which insurance company to go with, you should keep in mind that the insurance company in Arizona is not the underwriter. The real decision maker is the bond company out of state who actually under writes and decides if someone is a "good risk" or not. Before anyone can sell you a "glass only" policy in Arizona, they must check your current contracted vendors history with that bond company. This means you must maintain a good relationship with your current vendors in order to qualify for your next one. Insurers in Arizona must report the activity of the agent and the status of your claim history. In the long run, the best insurance policy you can purchase is at a larger "A" rated insurance carrier in Arizona. This insurer generally has a higher price point and may even result in you paying an unfavorable premium. However, the trade off is they have claims adjusters sitting in Arizona everyday. They will evaluate your glass claim whether it is good or bad. If you walk into a meeting and only get two pieces of glass, it is probably for a good reason and the carrier will work with you to make sure your vendor gets reimbursed for the best quality. The other option is an "un-bonded" or just plain "bonded" underwriter who is going to take your 10% deductible and pod in thousands of dollars worth of glass that’s never going to be submitted to them again. I am not saying that all companies have only the best intentions or that some are not less honorable than others. There are of course contractors that do good work and there are those who abuse the privilege of accepting. If you are from the glass contractor side remember, keep your vendors up to date on the latest policies so that we can all benefit from getting you the best coverages available.
FAQs on Arizona Glass Coverage Laws
When it comes to Arizona’s auto glass coverage laws, there are several questions consumers have about these rules. The following are some of the most common inquiries regarding the law:
Do I Have to Pay a Deductible for a Windshield Replacement if I Have Full Glass Coverage?
No. You cannot be charged a deductible. See the previously cited Arizona Supreme Court case, Cox v. Standard Insurance Company, which explains that the entire amount of a windshield replacement must be paid by the insurer.
Does the Glass Coverage Law Apply to Walls of the Vehicle or just the Windshield?
The plain language of the Arizona law provides that the coverage only applies to "broken" windshields, windows, or glass doors . Even though the law does not explicitly mention "walls," in context, it could be interpreted to cover those panes of glass as well, but a clear reading of the law applies only to "broken" panes of glass on the exterior of the car.
The insurer didn’t use a factory windshield when the vehicle was repaired, does this matter?
Even if the insurer sent a customer to a shop that used an aftermarket windshield rather than a factory windshield, Arizona law only requires an insurer to pay for the cost of the aftermarket part, and the law does not require a dealership to use the factory parts. Any difference in the cost may then lie with the insured.
Does the Law Apply if the Car is Leased/Financed?
Yes, the law is designed to allow the insured to keep as much of the benefit as possible.