1. Authorization to Repair, Assignment of Proceeds, and Payment Agreement
- Customer authorizes [Cubbage Collision LLC] (“Shop”) to perform repairs, teardown, diagnostics, storage, and related services on the vehicle identified above.
- Customer unconditionally agrees to pay all charges incurred, including but not limited to deductible, depreciation adjustments, and non-covered charges, regardless of insurance coverage, insurer decisions, title transfer, or salvage designation. Insurance is accepted as a convenience only and does not relieve Customer of payment responsibility.
2. Diagnostic and Teardown Authorization
- Customer acknowledges that any preliminary estimate is based only on damage visible before disassembly and may not reflect the full scope of loss-related damage. Customer therefore authorizes Shop to perform all scanning, diagnostics, measuring, testing, disassembly, teardown, inspection, and related investigative procedures reasonably necessary to identify visible and hidden damage and to prepare an accurate repair estimate and any revised estimates or supplements. This authorization includes, without limitation, pre-repair and post-repair scans; removal of panels, trim, and components; partial or complete teardown when reasonably necessary; photographic and written documentation of damage; and preparation, submission, revision, and discussion of supplements with the insurer or its representatives.
- Customer acknowledges that modern vehicles often require partial or complete disassembly to evaluate structural damage, safety systems, sensors, electronic components, calibrations, corrosion-related conditions, and other damage not apparent from external inspection. Customer agrees that all diagnostic, teardown, supplement, documentation, administrative, reassembly, and related labor and charges constitute authorized work and are payable regardless of whether repairs ultimately proceed, whether the vehicle is declared a total loss, or whether the insurer disputes, delays, limits, or refuses payment.
- If Customer elects not to proceed with some or all repairs after such work has been performed, Customer remains responsible for all charges incurred through the date work stops. Customer further acknowledges that teardown, diagnostics, and supplements are standard and necessary components of modern collision repair and that Shop is not required to obtain insurer approval before undertaking reasonable diagnostic or teardown procedures necessary to identify damage related to this loss.
3. Parts, Materials, Sublet Repairs, and Procedures
- Customer authorizes Shop to use new, recycled, reconditioned, remanufactured, aftermarket, or original equipment manufacturer parts, materials, paint products, and sublet services as reasonably necessary to complete repairs, comply with insurer requirements, address parts availability, or restore the vehicle to a safe and serviceable condition, unless Customer and Shop agree otherwise in writing. Customer acknowledges that final repair methods, parts sourcing, and procedures may change as damage is identified and parts availability or insurer position changes.
4. Assignment of Insurance Proceeds
- Customer hereby irrevocably assigns, transfers, and conveys to Shop all rights, benefits, and proceeds payable under any insurance policy relating to this loss, to the extent of amounts owed to Shop for repairs, diagnostics, teardown, storage, administrative charges, and related services.
- Customer further authorizes Shop to communicate directly with any insurer, adjuster, appraiser, or third party regarding the claim and to receive, endorse, and deposit insurance payments on Customer’s behalf. Customer directs any insurer to remit payment directly to Shop pursuant to this assignment.
- This assignment is supplemented and further evidenced by the Assignment of Insurance Proceeds attached hereto as Exhibit A and incorporated herein by reference for all purposes. In the event of any inconsistency between this Agreement and Exhibit A, the provisions affording greater protection and enforcement rights to Shop shall control.
- This assignment survives completion of repairs, release of the vehicle, declaration of total loss, transfer of title, salvage designation, and any change in vehicle ownership.
5. Insurance Cooperation and Endorsement
- Customer shall reasonably cooperate with Shop in the presentation, adjustment, and collection of insurance proceeds relating to this loss. Such cooperation includes, without limitation, promptly providing policy and claim information, executing supplemental authorizations reasonably requested by Shop, endorsing insurance checks when required, appearing for recorded statements or examinations reasonably necessary to process payment, and refraining from taking any action that impairs Shop’s assignment, lien rights, contractual rights, or right to collect for authorized work.
- If insurer payment is issued to Customer, whether solely or jointly, Customer shall promptly deliver such payment to Shop to be applied to amounts due. Customer’s failure to cooperate with Shop’s collection of insurance proceeds, including refusal to endorse, redirect, or deliver insurance payments, shall constitute a material breach of this Agreement and shall entitle Shop to pursue all contractual, statutory, and equitable remedies available under Texas law.
6. No Waiver By Negotiation with Insurer
- Any negotiation, accommodation, estimate revision, supplement submission, insurer communication, delayed billing, partial payment acceptance, or other courtesy extended by Shop to Customer or any insurer shall not waive or diminish Customer’s primary responsibility for payment in full, Shop’s lien rights, Shop’s assignment rights, or Shop’s right to collect all sums due under this Agreement unless expressly waived by Shop in a separate writing signed by Shop.
7. Credit Card Processing Fee
- Customer may pay amounts due under this Agreement by cash, check, certified funds, or credit card. Payments made by credit card are subject to a processing fee of three percent (3%) of the total transaction amount, or the maximum amount permitted by Texas law, which fee represents the cost incurred by Shop for processing such payments.
- Customer acknowledges that this fee is charged solely to offset merchant processing costs and constitutes an additional charge due under this Agreement. Shop reserves the right to require cashier’s check, wire transfer, or other certified funds for amounts exceeding $5,000 or for any payment made to release a vehicle subject to lien, storage charges, or total-loss settlement.
-If Customer receives insurance proceeds and elects to pay Shop using a credit card rather than the insurance draft or other funds issued by the insurer, the credit card processing fee shall apply to the entire amount charged.
8. Non-Sufficient Funds; Chargebacks; Payment Reversals
-Customer shall remain liable for any returned check fee, ACH rejection, wire reversal, card chargeback, card dispute, or other failed or reversed payment, together with any resulting bank fees, processor fees, attorney’s fees, and collection costs incurred by Shop. Shop may treat any chargeback or payment reversal as nonpayment and may reassert all lien, storage, and collection rights available under this Agreement and Texas law until the account is fully satisfied in good funds.
9. Ownership, Authority, and Lienholder Consent
-Customer represents that Customer is the owner of the vehicle or is otherwise authorized by the owner and any lienholder to deliver the vehicle for repair, authorize charges, assign insurance proceeds, and enter into this Agreement. Customer shall indemnify and hold Shop harmless from any claim arising out of a lack of authority, competing ownership claim, or objection by a co-owner or lienholder.
10. Mechanic’s & Storage Lien Acknowledgment (Texas Property Code § 70.001 et seq.)
-Customer acknowledges that Shop holds a statutory mechanic’s and storage lien for labor, materials, and storage charges and may retain possession of the vehicle until paid in full. Customer agrees that no insurer, salvage vendor, lienholder, or third party may remove the vehicle without Shop’s written consent.
11. Storage & Administrative Charges
-If the vehicle is not retrieved, paid for, or otherwise resolved within the timeframes below, Customer agrees that storage and administrative charges shall accrue automatically as follows:
*Tier 1 - Days 1–3 $0.00 per day – Grace Period/Admin. Holding
(following completion of repairs, total-loss determination, or payment demand)
*Tier 2 - Days 4–10 – $75.00 per day – Standard Storage
*Tier 3 - Days 11–20 – $125.00 per day – Bay Occupancy / Operational Impact
*Tier 4 - Day 21 and on – $200.00 per day – Extended Storage / Opportunity Cost
- Storage charges accrue daily, including weekends and holidays, and are due and payable upon release of the vehicle or upon demand. Storage charges reflect the commercially reasonable cost of secure vehicle retention, loss of bay availability, administrative handling, and regulatory compliance. Charges accrue regardless of insurer delays, disputes, inspections, re-inspections, salvage determinations, or title transfer.
- Insurer is advised that continued delay materially increases storage exposure and that storage charges are not waived absent written agreement. Storage charges may not be offset, reduced, or disputed unilaterally and shall not be contingent upon insurer payment decisions or internal guidelines. Customer acknowledges that storage charges are reasonable, necessary, and reflective of actual costs incurred by Shop and agrees that delays caused by insurer action or inaction do not excuse payment.
12. Administrative and Supplement Processing Charges
-Customer acknowledges that collision repair requires substantial administrative work including claim coordination, insurer communications, estimate preparation, supplement preparation, documentation, re-inspections, parts verification, and regulatory compliance. Accordingly, Customer agrees that Shop may charge reasonable administrative fees including but not limited to:
*Supplement Processing Fee: $150.00 per supplement prepared and submitted to an insurer
*Administrative Claim Handling Fee: $250.00 per claim for insurer coordination and documentation
*Re-Inspection Coordination Fee: $75.00 per occurrence when insurer representatives or vendors require additional inspections
*Total Loss Processing Fee: $250.00 for teardown documentation, estimate preparation, insurer coordination, and salvage processing
-These fees reflect the actual administrative costs incurred by Shop and are separate from labor, parts, and storage charges. Customer agrees that such fees are reasonable and necessary and remain the responsibility of Customer regardless of insurer reimbursement policies or internal guidelines.
13. Total Loss Determination and Salvage Removal
-If the vehicle is declared a total loss or salvage by any insurer, Customer and the insurer shall promptly arrange for payment of all charges due to Shop and removal of the vehicle. Customer acknowledges that Shop is not a salvage storage facility and that continued retention of a total-loss vehicle occupies operational space required for repair services. Accordingly:
*All repair, teardown, diagnostic, administrative, and storage charges must be paid in full before the vehicle will be released to any insurer, salvage vendor, or third party.
*Upon a total-loss determination, the vehicle must be removed within seven (7) calendar days unless otherwise agreed in writing by Shop.
*If the vehicle is not removed within that time period, Tier 3 storage rates set forth in this Agreement, below, shall automatically apply.
*Shop shall have no obligation to release the vehicle to any insurer, salvage vendor, tow company, or other party without payment in full or written payment arrangements acceptable to Shop.
*Any attempt to remove the vehicle without payment or written authorization from Shop constitutes interference with Shop’s statutory lien rights and may result in legal action.
*Customer acknowledges that delays caused by insurer inspections, re-inspections, internal review, salvage coordination, or title processing do not suspend or reduce storage charges.
14. No Removal Without Payment
-Shop is authorized to refuse release of the vehicle to any person or entity until all charges are paid or resolved in writing. Any unauthorized removal subjects the removing party to liability for damages, costs, and attorney’s fees.
Customer expressly agrees that:
*Transfer of title or insurer ownership does not extinguish Customer’s payment obligations
*Shop shall not release possession based solely on a total-loss determination
*Any removal attempt without payment constitutes conversion and interference with lien rights
*Customer waives any claim that insurer ownership relieves Customer of responsibility for Shop charges.
15. Personal Property Disclaimer and Abandoned Property
-Customer acknowledges that the vehicle may contain personal belongings, loose items, aftermarket accessories, or other personal property. Customer is solely responsible for removing all personal property from the vehicle prior to repairs, storage, or insurer inspection.
-Shop shall not be responsible for loss, theft, or damage to any personal property left inside the vehicle, whether occurring during repair, storage, movement of the vehicle, or while the vehicle remains on Shop premises.
-Any personal property remaining in the vehicle after completion of repairs, declaration of total loss, or demand for payment may be removed and stored by Shop at Customer’s expense. If such property is not retrieved within thirty (30) days after written notice to Customer, the property shall be deemed abandoned and Shop may dispose of the property in any commercially reasonable manner without further liability.
-Customer agrees that Shop shall not be liable for any loss or damage to such property and Customer releases Shop from any claims relating to such items, except to the extent caused by Shop’s gross negligence or willful misconduct.
16. Photographs, Scans, Recordings, and Disclosure for Claim Handling
-Customer authorizes Shop to photograph, scan, measure, test, document, and record the vehicle and the repair process and to share such materials with insurers, adjusters, appraisers, parts vendors, sublet vendors, lienholders, towing or salvage vendors, legal counsel, and courts or regulators as reasonably necessary to estimate, repair, supplement, collect, enforce, defend, or resolve claims relating to the vehicle or this loss.
17. Unsafe, Incomplete, or Unpaid Vehicle; Stop-Work and Refusal of Release
-Shop may suspend work, refuse release of the vehicle, or decline to reassemble the vehicle if Shop determines that the vehicle is unsafe, incomplete, subject to unresolved payment issues, or cannot be returned to Customer in a condition Shop reasonably believes is safe and legally compliant. Customer remains responsible for all charges incurred through the date work is suspended or the vehicle is held.
18. Limited Warranty; Condition Precedent to Coverage
-Any warranty offered by Shop applies only after all amounts due under this Agreement have been paid in full in collected funds. No warranty applies to customer-supplied parts, used parts selected at Customer’s request, prior damage, hidden damage not repaired, insurer-required repairs or omissions, unrelated mechanical or electrical conditions, or work performed by third parties. Shop disclaims all other warranties except those that cannot be disclaimed under Texas law.
19. Attorney’s Fees & Collection
-Customer agrees to pay all costs of collection, including attorney’s fees, court costs, filing fees, and collection expenses.
20. Governing Law
-This Agreement shall be governed by the laws of the State of Texas. Venue for any dispute arising out of this Agreement shall lie exclusively in Harris County, Texas.
21. Statutory Notice
-This transaction and the rights asserted herein are governed by, and expressly preserve, all rights and remedies available under Texas law, including without limitation Texas Property Code § 70.001 et seq. (Mechanic’s and Storage Liens), Texas Transportation Code Chapter 501 (Motor Vehicle Title and Salvage), Texas Insurance Code Chapter 542 (Prompt Payment of Claims), and applicable Texas common law governing post-loss assignments of insurance proceeds. Nothing herein shall be deemed a waiver of any statutory or contractual right, lien, or remedy.
22. Miscellaneous
-This Agreement, together with any exhibits or attachments hereto, constitutes the entire agreement between Customer and Shop with respect to the subject matter hereof and supersedes all prior or contemporaneous oral or written discussions, understandings, representations, or agreements relating thereto. No amendment, modification, waiver, or discharge of any provision of this Agreement shall be effective unless in writing and signed by Customer and Shop.
-If any provision of this Agreement is held to be invalid, illegal, or unenforceable in whole or in part, the remaining provisions shall remain in full force and effect to the maximum extent permitted by law, and the invalid, illegal, or unenforceable provision shall be deemed modified only to the minimum extent necessary to render it enforceable.
-No waiver by Shop of any breach, default, or provision of this Agreement shall be deemed a waiver of any other breach, default, or provision, nor shall any waiver constitute a continuing waiver unless expressly stated in writing. Shop’s delay or failure to enforce any right or remedy under this Agreement shall not constitute a waiver of that right or remedy.
-Customer may not assign any rights or delegate any obligations under this Agreement without Shop’s prior written consent. This Agreement shall be binding upon and inure to the benefit of Customer and Shop and their respective permitted successors and assigns.
-This Agreement may be executed in counterparts and by electronic signature, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. A photocopy, scanned copy, or electronically transmitted copy of this Agreement or any signature hereto shall be deemed as effective as an original for all purposes.
-The headings in this Agreement are for convenience only and shall not affect interpretation. When the context requires, singular terms include the plural and vice versa.