Auto insurers rely on accident repair data center to find out if a vehicle has been involved in an accident and fixed. It doesn’t matter that there was a claim or the owner had it fixed out of the pocket. There are a few ways to find out about the crashes. The data center collects data from police, insurance and other possible sources.
There are several uses of the information gathered here for the insurance companies. First of all, they want to find out about claims that their applicant has not mentioned. They will have to check back with the client and ask explanation before they can accept the risk. They don’t potentially want to deal with a policyholder who is not straight with them.
They need the correct information to be able to charge the right premium for every risk. Otherwise, they will be losing out on millions of dollars additional premiums. Furthermore, they would be accepting risks that they wouldn’t otherwise be comfortable with. So, it is expected that they carry out their own searches and make sure cars insured hasn’t had damages and repairs.
This knowledge of repairs serve a second purpose. Insuring a perfectly operation vehicle is different from insuring one that has been fixed after a large accident. When the cars are made in the factories they can be built to a certain standard. However, getting them re-built following a crash is totally different story for many reasons.
For once they cannot be sure that the work had be done professionally and the car is as good as before. If there are issues with an automobile that means they are higher risk than a typical one. They can give in easier in case of crashes and cause a lot more injuries to passengers. This would mean a larger than normal claim payments for the firms covering them.
The second problem is that the mechanical faults can be the main reason for the accident. If the car gives in on the highway and starts a big accident they company will have to face a large bill. When so many parts has been replaced reliability of a vehicle can be questionable in many ways.
Are the mechanics who fixed it qualified enough to do a goo job? Did they use original parts or use after-market parts? They can sometimes even use second hand parts from scrap yard to do repairs that would otherwise be uneconomical. When owner is paying he/she may agree to less than satisfactory solutions for financial reasons.
That is why companies would want a little bit more risk premium when they discover that an automobile has had major repairs done to it. Actually, the owner may not even know about those fixes. There are many people including body repair shops who fix cars and sell them without telling the buyer where they have been.
You will have to get used car reports before agreeing to buy on the second hand market. There are many people who don’t care what happens to these vehicles and their owners. You don’t want to end up with a lemon and you certainly don’t want to end up in an accident with it.