NAGS Pricing Explained: How Auto Glass Parts Are Priced
NAGS — the National Auto Glass Specifications — is the standard pricing and parts identification system used throughout the auto glass industry. Understanding how NAGS works is essential for carriers, TPAs, and shops alike.
What NAGS provides. NAGS maintains a comprehensive database of auto glass parts, each identified by a unique part number. For every part, NAGS publishes a benchmark list price that serves as the starting point for pricing in insurance claims.
How pricing works in practice. Carriers and TPAs typically negotiate pricing as a percentage of the NAGS benchmark. For example, a carrier might approve glass pricing at NAGS minus 15 percent for standard parts. This creates a consistent, auditable pricing framework across the entire program.
Labor and materials are separate. NAGS pricing covers the glass part itself. Labor rates (the cost of installation), material allowances (adhesives, primers, moldings), and add-on services (recalibration, disposal fees) are negotiated separately between the carrier and the TPA.
Why NAGS matters for invoice review. Every glass invoice should reference the specific NAGS part number for the glass installed. This allows the TPA to verify that the correct part was used for the vehicle and that the pricing matches the approved schedule. Invoices without NAGS references are difficult to audit.
NAGS updates regularly. Part numbers, pricing, and vehicle coverage are updated as new vehicle models enter the market. TPAs and carriers need to ensure their pricing schedules reflect current NAGS data.
The NAGS system creates the transparency and consistency that makes glass claims administration manageable at scale. Without it, every invoice would require individual negotiation and verification.