If you live in Arizona, unless you live under a rock .. (which is possible there's a lot of rocks here). I'm sure you've seen the numerous "cashback fast" offers by auto glass repair shops. So..What's the catch, and more importantly - is cashback for my windshield even legal?
It is legal in Arizona to offer cashback for windshield repair. However, It is very important to note: cashback for windshield replacement laws are on a state by state basis. So, make sure you don't get caught in a windshield repair scam.
Why Can Auto Glass Repair Shops *In Arizona* Offer So Much Money?
Let's take a look at the claims process in Arizona step by step to find out.
Customer is driving down the road and gets windshield smashed by a rock. Our imaginary customer has auto glass insurance. Let's say Geico auto insurance.
Mr Customers then calls to file a claim. The Geico insurance agent asks - "if the crack is larger than a dollar bill" (to see if it qualifies for a replacement). Which in our imaginary scenario. It does.
Geico claims agent tells you the preferred windshield replacement shop - in your area.
Windshield company drives out to your location and fixes your windshield by replacing it.
Auto Glass Repair companies in Arizona try to insert themselves between steps 3 and 4
When Geico asks "Mr. customer you have the right to choose blah blah. You remember X auto glass company in Arizona with X cashback offer and choose them for windshield repair.
Hatch Auto Glass and many other companies will then bring a check/cash at time of replacement. The windshield repair company is paying you before they get paid, because auto insurance companies pay out on already decided industry rates for each type of windshield. This means the money is essentially guaranteed for the auto glass shop, with fraud excluded of course.