Lawsuits, TPAs And Auto Theft
Editor’s Note: This regular department in AGRR magazine focuses on areas where auto glass and insurance intersect and how insurance practices affect both industries’ mutual customers.
Safelite Lawsuit Will Head To Trial
A California superior court has denied a motion to strike the whistleblower complaint about Safelite’s alleged insurance fraud clearing the path for the lawsuit to go to trial in 2025. Former Safelite product development and strategy manager Brian Williams filed the complaint anonymously in 2022, and the California court unsealed it in 2023. Williams alleges Safelite violated California insurance fraud laws by billing insurance companies for services they didn’t perform or more expensive parts than they used.
According to documents filed in the San Mateo County Superior Court in California, Safelite moved to strike Williams’ whistleblower complaint. In July 2024, the judge denied Safelite’s motion to strike in all but one count. The Court determined Williams both provided enough information in the complaint and was knowledgeable enough in the subject of his complaint that it didn’t meet the grounds for being struck.
The Court acknowledged that Williams might not have “detailed knowledge of Safelite’s insurance billing claims,” but he “would have more knowledge of the defendant’s business practices [than] either Safelite or the plethora of automobile insurance companies alleged … to have been defrauded.” The Judge asked Williams to file an amended complaint omitting one portion that Safelite claimed was protected by attorney-client privilege, which he did on July 19 according to court records. With Williams’ complaint upheld, the court document says the trial is set for September 29, 2025.
Driven Brands Launches TPA Venture
Driven Brands rolled out its new third-party administrator (TPA), Driven Claims, in the early summer of 2024. The launch has received mixed reactions within the auto glass industry. According to Michael Macaluso, Driven Brands’ executive vice president of Paint, Collision, and Glass (PC&G), Driven Claims is set up to allow customers to choose which shop best serves their needs.
“Ultimately, it’s all about getting a customer into the store or getting a technician to their home or work, whatever the case may be, to fix the car,” Macaluso says. “The TPA should just facilitate the entire transaction. That’s our belief—to make it as seamless, quick and hassle-free as possible.”
Macaluso says it’s also a priority to make sure all the auto glass shops signed onto Driven Brands’ TPA receive a good rotation of jobs, not just the shops owned by Driven Brands. Though Macaluso declined to say which insurance providers they have partnered with yet, he did confirm that Driven Claims has onboarded insurance partners.
Court Criticizes GEICO’s Evidence
GEICO Insurance received the disapproval of the Sixth Circuit Court in late July 2024 for documents its defense submitted in a proposed class action lawsuit. The plaintiffs, former GEICO Insurance agents, attempt to revive their previously dismissed proposed class action lawsuit in the Sixth Circuit Court, alleging they had been misclassified as independent contractors.
The judges hearing the plaintiffs’ appeal noted that at least some of the contract plan documents GEICO’s defense submitted were filled with markups and edits. Though the defense said there were clean copies of the documents on record, the judges expressed disapproval that they had submitted the marked-up copies.
Former insurance agent James Moyer filed the proposed class action in February 2023 in an Ohio federal court. He alleged that GEICO entirely dictated his work hours and location, goals and employee hiring and discipline as they would with a full-time employee. Moyer alleged that GEICO wouldn’t pay or credit him for sales or provide him or other similar agents with the benefits he argued he was legally entitled to.
IBC Praises Canadian Summit
After the Canadian government announced its National Summit for Combatting Auto Theft, the Insurance Bureau of Canada (IBC) delivered a statement expressing its support.
The Canadian government declared in January 2024 that it would hold the summit. The IBC commended this move, saying “Auto theft is a national crisis … the only way to end this social menace impacting public safety is through a concerted, whole-of-society effort.” The summit was held on February 8, 2024.
According to a statement from the Canadian government, the summit decided to increase the Canadian Border Services Agency (CBSA) budget by $28 million. This will enhance the CBSA’s ability to investigate and examine stolen vehicles.
To view the laid-in version of this issue in our digital edition, CLICK HERE.
