Insurance Claims Harvesting

I first heard the term “harvesting” in August of 2004, when I read an article in the Insurance Journal about the practice of repairing or replacing windshields that do not need to be repaired or replaced. I was appalled by this unethical practice, as I would hope all of you were.

Since that time there have been several other articles, a few insurance investigations, and a lot of heated debate on the topic. What I find interesting is that a segment of the replacement industry would like you to believe that the problem can be attributed to a bunch of fly-by-night windshield repair technicians, who are billing insurance companies for the price of a standard windshield repair. While I have publicly denounced this practice, I believe it is actually a very small part of the harvesting problem.

The real money in harvesting is in replacements, not repairs. Here is the condensed version of a typical harvesting scenario: A glass shop employee inspects a customer’s car and finds a repairable chip in the windshield, but instead of telling the customer that it can be repaired, the customer is told that the windshield needs to be replaced, but because the glass shop is so generous and kind, they will waive the customers deductible and the replacement will be done with no expense to the customer. The customer agrees to the replacement and the windshield is replaced. To recoup the money lost by waiving the deductible, the glass shop bills the insurance company for moldings, clips, and anything else they feel they can get away with.

I have seen this happen first hand, and the result is that the insurance company gets stuck with a bill for several hundred dollars more than the cost of a legitimate windshield repair. This is insurance fraud, and it is happening more often than any of us would care to admit.

In several of the articles I have read on harvesting, car washes, gas stations, and tent locations, have been mentioned, as if location is somehow relevant. Location has nothing to do with harvesting. I have great admiration for those enterprising individuals who step outside the box, and find new places to market their business. Where better than a car wash, gas station, or parking lot, to promote the business of windshield repair and replacement? Hundreds of cars roll through these locations every day, and many are in need of a windshield repair or replacement service.

Again, some would have you believe that windshield repair technicians are staffed in all car wash and service station locations, however in my own investigation I found that many of the technicians working these locations are employed by large glass shops. This is also irrelevant, and only pointed out for those who have a false understanding of the problem at hand.

It is not my intention to point fingers at the glass replacement industry. I simply want to reiterate Delta Kits’ position on harvesting, and make it very clear that there is no specific segment of the industry that we can pin this problem on. If a windshield repair technician is billing an insurance company for a repair that is not necessary, it is harvesting. If a windshield replacement technician is replacing a windshield that can be repaired, it is harvesting. Either way, it is wrong and is very damaging to the windshield repair/replacement industry.

In summary:
1) Location has nothing to do with insurance fraud
2) The size of a company has nothing to do with insurance fraud
3) Harvesting is not limited to windshield repair technicians or businesses
4) Harvesting is not limited to windshield replacement technicians or businesses
5) Harvesting is deceptive, unethical, and illegal
6) Harvesting is harmful to the glass replacement and glass repair business

 

-Brent Deines