One of the most common types of auto insurance policies in Texas are Collision policies and what happens when an accident occurs is that an insurance company will show up to the scene and sell you an insurance policy. What they do, however, is they show you a car that was damaged in an accident.
The car is there, but no one is there. In many cases, that's exactly the way it should be, because if someone was injured in an accident, or even killed, they would be the one to claim on your insurance.
One thing you might notice is that the owner of the car might not have insurance on it. What happens when an insurance company goes to that car and sums it up with the information on file? How does their process work?
Many times an insurance company will find a way to put the paperwork together. One way they may do this is by simply writing the collision amount on the side of the driver's car and having that factoid stamped on the vehicle. This is the number one mistake that insurance companies make.
If the insurance company makes a mistake like this, and they call a tow truck and tow the damaged car away and shows up at the scene of the accident, they will fail to call the insurance company before they even hit the road. This is how they get away with it!
It is possible that the insurance company will call the owner on the day of the accident and request that they pay the deductible before the insurance company comes to their car. You should never be that insurance company's first choice to come and get your car.
What happens when an insurance company does come to your car and sums it up is that they will write the amounts on the side of the car in letters. However, these numbers don't add up because they aren't the same amounts.
The insurance company will simply try to write the cost of repair on the side of the car, but never add up the total on the car. Another common mistake that insurance companies make is assuming that they can tally up a few bucks and make the bill look bigger than it actually is.
Collision policies are a great deal for the owner, because they don't have to worry about collision claims. On the other hand, collision policies are also a way for insurance companies to get the most money out of their clients.
It is also important that you understand the difference between the amount that the insurance company will write down and the amount that the owner will have to pay to replace the car. Some people mistakenly think that the cost of replacing a car that is totaled will be equal to the amount of damage done to the car by the collision.
Collision insurance is a good deal, but it is a deal that have to be negotiated. Getting into a negotiation with your insurance agent is often the best way to go, because you will be able to get the lowest price possible without losing coverage.
There are many ways that people can learn more about collision insurance and how to make sure they get the best deal possible. There are many articles on this topic on our website, and we encourage people to check them out to get a better understanding of how they work and to get the lowest price possible on collision insurance.