by Guest » Tue May 13, 2008 06:05 pm
Hello,
I understand that if I file a claim for the damage a storm did to my vehicle, and there is a loss, the insurance company (as long as I have comp coverage) will issue a claims check. And if the vehicle's title is held by a bank, the check will likely include ME AND TEH LIENHOLDER, or ME AND THE BODYSHOP.
Well...what if they issued the check in my name ONLY?
Here are my questions:
1. If I decide to cash the check and use it entirely to pay down my loan balance, could this come back to bite me?
2. If I used this check for a family emergency, or really anything BESIDES the damage of the vehicle, could this come back to bite me somehow?
3. Are there any risks in using the claims check NOT for what it was issued for?
I understand that if I file a claim for the damage a storm did to my vehicle, and there is a loss, the insurance company (as long as I have comp coverage) will issue a claims check. And if the vehicle's title is held by a bank, the check will likely include ME AND TEH LIENHOLDER, or ME AND THE BODYSHOP.
Well...what if they issued the check in my name ONLY?
Here are my questions:
1. If I decide to cash the check and use it entirely to pay down my loan balance, could this come back to bite me?
2. If I used this check for a family emergency, or really anything BESIDES the damage of the vehicle, could this come back to bite me somehow?
3. Are there any risks in using the claims check NOT for what it was issued for?
Posted: Wed May 14, 2008 02:01 am Post Subject:
I don't think the insurance company cares what you use it for. But I would keep in mind you are still responsible for the debt to the bodyshop or bank, etc. Now if there was a lien placed on the settlement prior to settling and they accidentally forget to pay the lienholder then I would check into it further. My brother got in an accident and he was not at fault. He went to the hospital and they billed him directly, usually it is A LOT lower rate when the insurance is not billed. Well his hospital fees were $3000 dollars and so the insurance company just sent him a check with that $3000 included. He then went to the hospital and cut a deal for like $2100 I believe. IF the hospital would have had a lien then I think the insurance would've had to pay them directly and not my brother.
There are very smart people on this board, I am not one of them, just my opinion. You will get your anser I'm sure.
Posted: Wed May 14, 2008 05:13 am Post Subject: Claim check was made to my only, not my lienholder
I am a claims adjuster for an insurance company and if the pmt is under $3500.00 and you do not live in TX or AR we can issue the pmt direct to you if you do not provide us with a bodyshop name, we will issue the pmt direct to you, you are free to do with the check what you want, however if the vehicle is repo'd or you trade it in the prior dmg would be your responsibilty,,and don't try and claim the dmgs if you go to another insurance company because you will be reported on an ISO report,, just an FYI, hope it helps. God Bless
Posted: Wed May 14, 2008 06:21 am Post Subject:
Hi, I see that the answer to your questions are quite resolved by the prior posters. But as someone said there could be circumstances where in you use the payment as you wanna, while the damage becomes your responsibility.
See, if you're trying to avoid paying it to your bank, let me tell you it may not be that easy!
Regards, Plasticmind
Posted: Wed May 14, 2008 11:32 am Post Subject:
Here are my questions:
1. If I decide to cash the check and use it entirely to pay down my loan balance, could this come back to bite me?
No only in the instance if you have another accident or claim and the same portions of your vehicle are damaged, then they will not pay to fix those areas again, or of course the vehicle is worth less not repaired so if it were to total or you decide to trade it in this unrepaired damage would be subtracted from the total...2. If I used this check for a family emergency, or really anything BESIDES the damage of the vehicle, could this come back to bite me somehow?
same as above...3. Are there any risks in using the claims check NOT for what it was issued for?
same as first answer...I'll tell you who could get bit, and that's the carrier..if your vehicle were to be repopped, they could be forced to pay the claim again to the leinholder because they failed to protect them....course then the carrier would come after you for reimbursement of the second payment...
You're fine use it for what you want....
the pmt is under $3500.00 and you do not live in TX or AR we can issue the pmt direct to you if you do not provide us with a bodyshop name, we will issue the pmt direct to you
I'm sorry anonymous1968 adjuster, but in my state (MO) we MUST protect the leinholder even if it's 10 cents!ano
Posted: Mon May 19, 2008 05:02 pm Post Subject: UPDATE
UPDATE:
I went ahead and deposited the check into my bank account, but the bank of the check will not release the funds for 5 business days. So right now my fingers are crossed, hoping it will release into my account. But I'm afraid it won't. Here's why.
I just received a letter from my insurance provider stating:
Currently:
1. We are waiting for damage estimates
We will inform you of the status of this claim until it is concluded.
My concern is that I will be forced to use the claim money for repairing the vehicle, and therefore I will still owe the bank my car loan balance. My plan (what I'm hoping) is to pay off the car with this claims money. It is just enough.
I don't want to contact my insurance company, because I have a feeling they made a mistake by writing the check in my name only, and if I call, they will see their mistake, take the check back, and reissue in mine AND car lien holders name.
My questions:
What should I do?
How does this claim become 'concluded'?
Posted: Mon May 19, 2008 08:00 pm Post Subject:
It's the insurance companies legal responsiblity to protect your lien holder. Your not responsible for their mistakes. IMHO I don't see anything happening from this. If you were to pay off the vehicle then your simply satisfying your contract with the lien holder. About the only way anything would become of this is if the lien holder repo'ed the vehicle with existing damages.
I sounds like the letter you got from your carrier just crossed the payment in the mail, and/or was simply generated by their claims system.
Posted: Mon May 19, 2008 08:07 pm Post Subject:
will not release the funds for 5 business days.
That's standard we pay claims with bank drafts NOT checks...1. We are waiting for damage estimates
We will inform you of the status of this claim until it is concluded.
WHAT? What did they pay you based on? If they didn't already have an estimate? I don't understand this, please explain...
My concern is that I will be forced to use the claim money for repairing the vehicle, and therefore I will still owe the bank my car loan balance. My plan (what I'm hoping) is to pay off the car with this claims money. It is just enough.
YOU DO NOT HAVE TO REPAIR THE VEHICLE !!!! If you want to pay the note for the vehicle off with the claim money you can....if they pull the draft back, realizing they didn't protect the lein holder, and tell you they need to make it out to you and the body shop...just tell them...NO, please make it payable to me and my lein holder ONLY...they will do this without issue...in fact it's easier for the adjuster....if I call, they will see their mistake, take the check back, and reissue in mine AND car lien holders name.
What's wrong with that if you want to pay it off with the money anyway?My questions:
Nothing, except chill out a little ... :wink:What should I do?
How does this claim become 'concluded'?
Normally it would've been closed when they issued payment, but don't know what they mean about this estimate stuff, are you SURE they arent' talking about your home in that letter?_________________
Posted: Thu Apr 09, 2009 06:39 pm Post Subject: insurance claims check...cashed
In Texas, received claim check for hail damage on travel trailor. It was made payable to me only...there is a lien holder. Cashed it with intent to fix but emergency came up and $ was used for other purposes. Is there any problem with that? :?
Posted: Thu Apr 09, 2009 11:02 pm Post Subject:
.
.
Cashed it with intent to fix but emergency came up and $ was used for other purposes. Is there any problem with that?
You might want to find and read your "LOAN Contract" to see what you agreed to do in regard to protecting/maintaining the Collateral used for this loan.
I believe most loans have language that allow the Lender to Call in the Loan if the Contract is Broken.
Just my thoughts..... and....... I'm not a Lawyer or a loan expert, so see if_ you_ can find the answers by reading that Contract.
That's my 2¢ worth for now. ( maybe ± a couple ¢ ) :)
FK,
Posted: Sun Apr 12, 2009 01:05 pm Post Subject:
Is there any problem with that?
Most likely not UNLESS the trailer is repossessed by your lender in which they could and would make your carrier pay the claim again, then your carrier would come after you for repayment, but if you do not default on the loan you and your carrier will most likely have 'gotten away with it'... :wink:You might want to find and read your "LOAN Contract"
While I'm sure your loan agreement addresses this, most (if not all) insurance contracts do as well ('least in my state)...under the heading of ''how losses are settled'' under your collision and comp coverages give that a gander as well...policys generally break it down to 'if there is a lein holder, and if there is not a lein holder' quite clear they must be protected....in all honesty 'IF' you told them who the lein holder was when the policy was taken out (yes there was that question)...then they made a mistake not protecting them...but that still won't matter should it have to be paid again...they (your carrier) will still come to you for repayment....Any more questions please do not hesitate to ask.
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