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: Fri Apr 17, 2009 02:13 am Post Subject:
I guess my question is, does the insurance company really care what I do with the money if I own my car?
They (3rd party carrier) shouldn't but frankly some are kinda wierd about it..Also, will a body shop do an estimate without trying to get the insurance company information from you, just so they can put pressure on you not to walk off with their estimate.
Some will some won't what I'm assuming what you're after is to find a shop to repair it for less than the adjusters estimate/payment right? Get your car fixed and pocket a couple of bucks in the bargain right? No big deal happens all the time...After you get the estimate AND the money then just go to a couple of shops and when they ask (and they will) tell them it is a 'self' pay...that you are paying it out of pocket which you are in fact doing...Do they ever charge you for the estimate then credit you if you have your car fixed there?
I supposed there are some of these shops around, I hear of one ever so often, personally I'd walk out the door of a shop like that...also from your discription this would be a quick sheet to write anyway.Can I just say this to him, or do I have to pretend I'm going to get it fixed.
Kind of depends on the person...but you would be truthful in saying, 'i'm just not sure when i will be repairing it'...right? :wink:Posted: Fri Apr 17, 2009 02:26 am Post Subject: Thanks, Lori
Very good advice. Thanks.
Posted: Fri Apr 17, 2009 05:36 am Post Subject:
You can get away with it if you are trying to get the money and get paid. Most of the time the insurance company will only make the check out to the lien holder and you, to avoid situations like this. Nobody would ever get their car fixed, they all would just cash the checks and drive around with damage on their vehicles. The lien holder wants the check to go to them to protect their investment (your vehicle). This is why they require full coverage insurance in the first place. I bet if you don't get your car fixed with the money now, you will not ever get the damaged repaired. Trust me, been there and done that.
Posted: Fri Apr 17, 2009 10:34 am Post Subject:
Justong this is true if a first party claim however, ''harry'' is third party and the draft can be issued to him directly. The 'other' insurance company has zero interest in the leinholder nor are they contractual bound to protect them...Obviously this is different in the case of a total loss, but this one is not.
Posted: Tue Aug 18, 2009 10:00 pm Post Subject:
I'm running into this problem. What if i can get the car fixed for less than what the check is for? Will my lien holder refund the balance to the insurance company? Will i get to pocket it and just pay taxes on it? Thanks for replies.
Posted: Sun Jan 17, 2010 10:46 pm Post Subject:
my car was keyed and broken into and i filed a police report and contacted my insurance company about the incident. A week after the damage the finance ompany came to get my car and it was only two payments behind and in the repair shop but the finance company demanded i return the car asap or they would have me arrested so i went and got the car and contacted the finance company. Two and a half weeks later the finance company contacted me and wanted me to give them the money i recieved form my insurance company, what do i do?
Posted: Mon Jan 18, 2010 12:00 pm Post Subject:
Give it to them...but get a receipt..the draft is made payable to you and them correct?
Posted: Wed Feb 17, 2010 06:21 pm Post Subject: car accident
someone hit my car in georgia. the tail light is busted in addition, to some scratches on the car. I have insurance and the person has insurance. however, do i need to contact my insurance and let the file or do i just need to contact the persons insurance. i am still paying for my car therefore, who will the check be mailed to if i contact his insurance.
Posted: Wed Feb 17, 2010 09:32 pm Post Subject:
do i need to contact my insurance and let the file or do i just need to contact the persons insurance.
You should contact both.
i am still paying for my car therefore, who will the check be mailed to if i contact his insurance.
The check may come to you, but it will have you and your lein holders name on it.
Posted: Thu Feb 18, 2010 01:11 pm Post Subject:
do i need to contact my insurance and let the file or do i just need to contact the persons insurance
If the other 'at fault' party's carrier is handling it..then you don't need to file a 'claim' wouldn't hurt to let your agent know though that it happened, in case you do have to come back to your own coverage...i am still paying for my car therefore, who will the check be mailed to if i contact his insurance.
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The check may come to you, but it will have you and your lein holders name on it
.Trench made a mistake in his answer..(read it again Trench he asked if the the other guys carrier pays)...if YOUR carrier pays, it will include your leinholder and/or a shop..if the other (third party) carrier handles the damage the payment can be made to you ONLY.Add your comment