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Why is Autoglass's windscreen repair cost for our BMW E38 so high?

My wife's year 2000 BMW 728 E38 requires a new windscreen. We contacted our insurer, Swiftcover and were told that we could have the replacement handled completely by Auto-Glass. I phoned them a few days ago and arranged to have the screen replaced today. They turned up with the wrong screen and are coming back on Saturday with the correct one. Upon leaving, the agent imparted that the bill to our insurer would be £1,500. This covers a green-tinted top and windscreen wiper heaters. I was horrified at this price and phoned a local company that I have used before and was quoted £197.62 to supply and fit exactly the same screen. How can the car owning and insuring public continue to allow this blatant rip-off that hits us all in our pockets at renewal time?

Asked on 5 March 2011 by DB, Norfolk

Answered by Honest John
That is an extraordinary difference. But it may be because the local man has bought up some old stock of these screens rather than had to commission the manufacture of them. That would explain it. A limited production run of any part costs about ten times as much as the part when mass-produced.
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