The Future of Auto Insurance in Texas is Here
If you have ever heard a rumor that auto insurance companies make sound judgments because of personal interaction with their customers, it is a vicious lie. The truth turns out to be stranger than fiction. In reality, the major auto insurance outfits are now highly automated, utilize major digital profiling databases and processing to underwrite and determine their rates, keep secretive databases in which they store personal customer data, and employ black box algorithms to pay less on claims than they should.
Do you believe that trained appraisers, community-based agents, and highly experienced claims adjusters are making the decisions that affect auto insurance claims and policies in Texas anymore? Their influence has declined dramatically and does so more every day. Truthfully, if some federal agency or Texas state oversight committee does not do something to stop this process, we could soon see a state where sinister machines gather data, analyze it, and calculate the complicated data points in order to reduce human interaction on important rating, underwriting, and claims payment to next to nothing. The future of Texas auto insurance is here, and if someone does not do something about the runaway insurance companies soon, it will not be pretty.
How Are the Auto Insurance Companies Using Your Personal Data?
Auto insurance companies have already begun figuring out how to use your personal consumption information in order to determine more accurately your level of risk. It may sound crazy, but the amount of television you watch, the types of magazines you peruse, and the things that you buy online could all soon determine if an auto insurance policy is made available to you and what premium amount you will have to pay in order to obtain such coverage.
Insurance companies are busy working on compiling even your posts on Facebook, Twitter, and various other less popular social networking sites into a social network score. This is not a joke; this network score will affect both your coverage options and your premium costs. Literally not staying on top of Facebook’s constantly evolving privacy settings could soon translate to paying more for auto insurance and receiving less coverage. It has even been suggested that you check in on Foursquare any time you go to workout at the gym so that the evil genius auto insurance companies witness that you are being healthy in some of your behaviors.
Be Careful What Questions You Ask Your Auto Insurance Company
All of this is bad and scary enough, but there is more you have to be wary of when you deal with a big brother auto insurance company anymore. Policy holders should be extra careful about posing basic questions regarding their coverage to their company’s customer service agents. They may react unpredictably and put the causal inquiry down in the system as an insurance claim! These databases of claims are so comprehensive it is scary. The records contained within them go back a full seven years. So if you decided to contact your auto insurance firm to query whether or not your policy would provide coverage for a certain accident or danger, the agents may decide that you have somehow suffered an accident or injury with your car and decide to record it into the database. It is no joke to warn you that as the laws in Texas stand at this moment, anything that you tell your insurance company hypothetically or even in confidence will be utilized against you.
The Terror of the Claims-Paying Super Program Colossus
Prepare yourself for the third bit of bad news regarding auto insurance companies in Texas. These outfits have now reached a whole new level of sophistication regarding evaluating and paying out on auto insurance claims. Their proprietary software bears intimidating and even terrifying names like “Colossus.” Colossus now decides major insurance determinations such as if a company will pay an auto insurance claim, and even how much (or little, more likely) they will pay on such a claim.
Human beings, such as live agents and adjusters, are not making the choices anymore, using common sense, informed, and larger picture decisions concerning damages and injuries sustained in an auto accident. Computers are overruling the vastly experienced claims adjusters. The data is simply punched into the computer program on one side, and it cranks out a magical number on the other side. As if that were not horrible enough news for Texas auto insurance policyholders, this proprietary software can be redirected by the executives at the auto insurance company in order to significantly underpay claims that are determined to be completely valid. It just requires them to push one little button in order to screw over the auto accident victims now.
Texas law boasts massive holes regarding auto insurance outfits and their practices. This page. If anyone is to receive basic benefits from auto insurance companies any longer, someone somewhere in the state capital needs to do something major and soon. Welcome to the future of insurance.
Good Insurance website: texasquotes.com