From staff reports

Time to pay that monthly car insurance bill?&t;!—-&t;.

Wednesday, December 22, 1999

Time to pay that monthly car insurance bill?

Then consider this.

Sen. Cal Larson of Fergus Falls and Rep. Ken Wolf of Burnsville are aiming to stop cash payments and juicy steaks for consumers for having their windshields replaced at particular companies.

The two elected officials say that eventually, everyone pays the price on their insurance bills when those in need of windshield repair take advantage of such incentives.

Here’s how it works.

At one company, the cash price to replace a windshield in a 1996 Toyota Camry was $265. The price billed to insurance companies was $600 and a $200 cash rebate to the consumer was offered.

At another company, a box of steaks was the incentive to consumers to pick them.

While this approach may seem fine and dandy to the ones receiving the cash and meat, we’re all paying the price on our insurance bills. Insurance companies include their costs in premiums, and these are costs.

It’s time to stop it.

If every company that provides an insurance-funded service did this – for example, if roofers gave customers a free vacation and then billed insurance for it just to attract business to them – we’d all be in serious trouble as insurance rates absorbed the cost.

Small windshield repair companies say they need the incentives to compete with larger firms that offer insurers bulk discounts.

But, car owners should not have to subsidize small windshield repair companies through their monthly premiums.

The Senate and House should support efforts to end the practice.