Can You Request That The Insurance Company Pays You So You Can Repair Your Vehicle?

If yous recently got into a automobile blow, or your car was damaged in a split scenario like if a tree fell on it, and your motorcar insurance company came through with a claim check to encompass the damages, and so congrats! Your car insurance worked only like it's supposed to.

Just now you may exist wondering if you accept to use that cheque on the repairs, or if you have the option of but keeping the money and living with the damages, or trying to set your auto on your own. The answer depends on whether or not you own the car outright.

We don't sell your information to third parties.

If you lot have an existing loan on your car, the cheque must go straight toward automobile torso repairs, only if y'all own the automobile outright, y'all may be able to spend the insurance money on whatsoever you lot cull, depending on how your insurer paid out the merits.

Key Takeaways

Some insurance companies send the claims check directly to the auto repair shop, which means you wouldn't be able to pocket the money
If yous charter or finance a car, your lessor or lienholder will likely become to sign off on how you use the claims payout
The only time y'all can just pocket the claims coin is if your state and insurance policy allow information technology, and typically simply if you own your motorcar outright

When practice I have to employ an insurance check for car repairs?

Pocketing the payout from an insurance claim may seem tempting, but information technology'south non ever an option. In many scenarios, you won't be able to keep the money yourself, and in some cases, doing then would really constitute fraud. Y'all should always check your policy requirements when it comes to how you will be paid out in the event of a merits. Here are some scenarios when you cannot keep the claim check for yourself.

1. When your insurer sends the check directly to an automobile body shop

Some insurance companies won't ship y'all the merits check directly, they may require that it go directly to a repair store as a style of ensuring you lot're using the coin for repairs. During the claims process, your provider may give you the option of choosing one of their preferred repair shops or picking your own.

Your provider may make it a niggling more difficult for yous to choose your own auto torso shop by requiring you to get multiple appraisals, significant information technology's usually easier to go with i of their preferred vendors. If you go with an auto trunk store your provider has a relationship with, your provider will likely pay the store directly.

2. When you accept a lease or loan on your machine

If y'all don't ain your vehicle outright and instead lease it or have a car loan, then the decision well-nigh whether or not to go on the coin from an insurance merits may not be yours to make. Information technology's likely that your loan or lease company is also a named insured on your policy, and the cheque from an insurance claim may be made out to both you and the company, so y'all'll need them to sign off on the repairs before y'all cash the check.

Your lender'south interest will vary depending on the company, just they may require that you use the check for repairs and send them documentation proving that you followed through.

We don't sell your data to third parties.

When can I continue the bank check and non fix my car?

If you own your machine outright and your insurance policy doesn't specifically require that the claims bank check go to your motorcar trunk shop, and so the money from a claim is yours, and yous tin can basically do whatever you want with information technology. Your insurer fulfilled their responsibility to you by paying out the claim, and, as long as your policy and your land's laws allow it, you can keep the money for other uses.

If the damage to your machine was but cosmetic and you'd rather spend the coin for repairs on something else, you might choose to do this. Equally long as y'all've met your policy's requirements, it's non fraud for y'all to continue the money. However, it's not always the all-time thought.

There are few things you should consider earlier deciding to keep the money.

Once yous've already claimed damage, you lot tin can't merits it over again, even if you don't apply the resulting money on repairs
Claiming the same damage once again on a future blow can get yous charged with fraud
Not making repairs so yous can use the claims coin elsewhere could besides mean gambling with your safety

Fifty-fifty if you think the damage to your vehicle from an accident or incident isn't that bad, information technology's still important to get confirmation from a professional before you decide to just live with it or attempt to repair it yourself. At that place could be more than serious damage than you realize, which might wind up costing more money and headaches down the line if you don't fix it at present.

What if the insurance check is more repairs?

In short, yep, you do get to keep the coin if the check ends up being more than than repairs. That said, since the insurance company typically cuts you lot a check after the automobile body store, claims adjuster, or appraiser inspects the harm and gives them an estimate, odds are the leftover coin from the check will not exist that much. All the same, y'all do not take to render that coin to the insurance company.

We don't sell your information to third parties.

Often asked questions

When a car is totaled, who gets the check?

If your car is totaled (and your policy includes comprehensive and standoff coverage) you'll pay your deductible and then your insurer will pay you lot the value of your totaled car. You'll probably get what's called the actual greenbacks value, significant depreciation is factored into your reimbursement. If you still owe money on your car or it'due south a charter, the bank check may go directly to your lender or lessor, and if the value of your automobile is less than what you withal owe, gap insurance can make upwards the divergence and pay off your loan or lease.

Is it fraud if I don't utilise the claim money to repair my machine?

Laws and regulations regarding machine insurance claim checks may vary from state to land. If yous lease or finance your car, pocketing the claim money may be considered fraud. However, if you lot own the car outright and the insurer sends your claims check directly to you (not an machine trunk shop), then the check is yours and you can use it how you want. Keep in mind that non making necessary repairs to your vehicle may be unsafe (and even illegal depending on the severity of the damage), and claiming the same damage over again on a future claim would be considered fraud.

What if the insurance cheque is less than repairs?

If you don't believe you lot received the payout that you deserved, contact your insurance claims department. Try to provide as much documentation of the before and later on from the impairment. You may also desire to consider hiring an independent appraiser to go an additional quote for the repairs, which y'all can then bring to your insurer to assist make your case.

Anna Swartz is a managing editor and auto insurance expert at Policygenius, where she oversees our motorcar insurance coverage. Previously, she was a senior staff author at Mic.com, every bit well as an associate author at The Dullard.

Editor & Licensed Home Insurance Expert

Kara McGinley is an editor and licensed habitation insurance expert at Policygenius, where she writes nearly homeowners and renters insurance. As a announcer and as an insurance practiced, her piece of work and insights accept been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.