Preventing Glass Claims Leakage: Where Carriers Lose Money
Claims leakage — money paid out that should not have been — is one of the biggest silent costs in glass programs. Unlike fraud, leakage is usually not intentional. It results from process gaps, inadequate review, and inconsistent application of program rules. Here is where it happens.
Pricing schedule non-compliance. When shops bill above approved rates and invoices are not reviewed line by line, the overcharges accumulate. Even a few dollars per claim across thousands of claims adds up to significant leakage.
Unnecessary replacements. Some chips and cracks that could be repaired are automatically replaced because the shop defaults to replacement or the adjuster does not evaluate repair eligibility. The cost difference between repair and replacement is substantial.
Recalibration over-billing. Recalibration is billed on claims where the vehicle does not have ADAS features, or where the type of glass replaced does not require recalibration. Without VIN-level verification, these charges are difficult to catch.
Unauthorized add-on charges. Molding kits, disposal fees, mobile service charges, and other add-ons that are not part of the approved pricing schedule get included on invoices and approved without scrutiny.
Duplicate payments. The same claim is paid twice due to resubmission, system errors, or reconciliation gaps. This is more common than most carriers realize and can only be caught through systematic reconciliation.
A disciplined invoice review process — checking every line item against approved pricing, verifying ADAS requirements by VIN, and reconciling payments against submissions — is the most effective way to eliminate leakage. This is where a good TPA pays for itself.