Safelite AutoGlass recently negotiated a large cash settlement to resolve two insurance fraud lawsuits filed by a former employee. The lawsuits, brought by a former product development and strategy manager, accused Safelite of misleading insurance providers and overcharging for certain replacement parts and services.
The former employee filed complaints in California and Illinois in January 2023. He claimed the company submitted false and misleading bills to insurers for windshield replacement parts and cleaning services. According to the complaints, these practices led to significant financial losses for insurance companies and policyholders.
The California lawsuit alleged that Safelite falsely billed insurers for OEM replacement parts while using cheaper, lower-quality materials.
The company reportedly allowed technicians to install universal molding at will instead of vehicle-specific parts. Universal molding is a generic rubber or plastic strip that is less expensive and easier to install than manufacturer-approved parts. However, the former employee claimed it may not be suitable for all vehicles.
While the customer-facing invoice billed for the OEM part number and its suggested retail price, the technician could replace the part number with “FLEXIMOLD” on the backend without changing the customer-facing invoice, the complaint alleges…