Low price car insurance is offered for a number of possible reasons from the insurance company's point of view. Insurance companies must decide what type of plans they are going to use to garner a profit for their company, which means that they must decide how to charge you. One of the major things that must be considered when settling on rates is how much the claims department will cost the insurance company. To do this, an insurance company must decide how to settle claims, with a big part of this being the role of police reports.
Different insurance companies will take different approaches to settling claims and paying you for the damage that you have incurred. Low price car insurance companies will apply a less demanding and simplified approach to settling claims so they do not have to pay adjusters more to make decisions. When these low price car insurance companies do this, they rely more on items like police reports to make an important decision. On the other hand, more costly companies will pay more money to get established and experience adjusters to make their insurance decisions.
What you must understand about police reports is that they are not quite as straightforward and clear-cut as they may seem on the surface. Many people take police reports as the gospel in car insurance claims, and this is simply not the truth. The reason that police reports are not used with more weight from car insurance companies is because they are written just like everything else, on flawed paper by mortal men. Most car insurance companies will consider them in the overall investigation, but not center the entire investigation on the police report. This is what low price car insurance companies do.
The process is similar for most adjusters because they will get all of the information that they need to make a liability decision on a claim and then consider the police report as additional information. If the police reports are not used for an investigation purpose, they could be used to assist in finding information about another driver who is avoiding the insurance company. People who may not provide you with their information at the scene will be a little more compelled to do so when the police tell them that it is necessary.
Low price car insurance companies will use police reports in all sorts of ways in order to help them not have to hire as many adjusters and to reduce the time to decide if a claim should be paid or not. A police report is much cheaper than hiring more employees and paying a salary and benefits.