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 Aug 31, 2011 03:50 pm Post Subject:
If there is no lienholder, the check will be written in your name only. Your obligation to the lienholder will end when you pay off the note.
Posted: Fri Sep 09, 2011 10:51 pm Post Subject:
thanks for the advice. One last question. What exactly will happen as far as the title being concerned since the insurance company totaled my truck, even though I decided to keep the vehicle? Will they apply for a title? Or will I have to apply for a salvage title on my own?
Posted: Sun Sep 11, 2011 04:27 am Post Subject:
The title will not be released until the note is paid off. The insurance company will report the vehicle to the DMV as a salvage. It will be your responsibility to apply for a new salvage title. If the lienholder has not been satisfied, the new title will still show them as such. If you are going to pay off the note, then wait to apply for the new title until after you receive the title from the lienholder.
Posted: Mon Sep 12, 2011 12:52 pm Post Subject:
I filed bankruptcy in Feb. Judge stated I do pay as you go. If I dont want the car I can give it back and not pay remaining balance. My car was in an accident and the insurance company issued a check in my name because I didnt have repair shop. I recently gave the car back to the bank. Do I give them the check or can i cash it.
Posted: Mon Sep 12, 2011 03:23 pm Post Subject:
Now that you've wrecked the vehicle is too late to decide you don't want it, or to avoid the responsibility of paying to have it fixed. Give the check to the bank.
Posted: Thu Mar 01, 2012 08:38 am Post Subject: lein holder
i was issued a check wit the lein holder on it as well.. the lein holder is where i also rcvd the estimate.. i confirm wit the insurance company if i can fixed it somewher else and they stated yes.. can the lein holder deny sign the check so i can repair.. and if they do and i pay out of pocket, would the whole check b mines then? please i need answers
Posted: Thu Mar 01, 2012 09:05 am Post Subject:
Why would the lienholder refuse to endorse the check. No state requires you to have a vehicle repaired at a particular shop. Your lienholder can delay endorsing the check until it receives proof that the repairs are complete. You need to discuss the matter directly with your lienholder.
Posted: Wed May 09, 2012 05:07 pm Post Subject: deer
a deer hit my truck and the insurance is in my name and the truck is registered with someone on the policy this in the only vehicle i have can i get the adjuster to write to check to me or to him no lien holders
Posted: Wed May 09, 2012 06:10 pm Post Subject:
The check will be written to the person named on the insurance contract, or to the auto body repair mechanic. If you aren't one of those persons, you probably won't see a check with your name on it.
Posted: Wed Jul 18, 2012 05:08 am Post Subject: Check Error
The insurance company told me my repairs, hit metal on the road, was fixable. They then wrote me a check to cover the repairs, which I asked if I could cash and they said yes, to pay for your repairs to the body shop. Then they tore down the vehicle and found additional damage. They then called the car a total loss. I had no gap insurance and the amount they are sending the lien holder is 4k less than the claim, due to them sending me the initial check. My insurance company said it is my responsibility to repay the leinholder that 4k, because the check has already been cashed. The leinholder bullied me and said I must sign another loan with them and they will add the 4k owed to the next loan. What the insurance company doesn't know is that I was told my a reputable shop (after purchasing the vehicle) there was 13k worth of repairs needed BEFORE the accident. The lien holder is now telling the insurance company they will not give them the title because they screwed up by giving me 4k instead of them. In the 3 months of the loan, the lien holder will have received 12k total (my payments, down payment and insurance funds) for a car with 13k worth of repairs at time of selling it to me, for a car with a KBB/Edmunds value of 7k. In my opinion, they have now almost received almost twice the value for a car that wasn't worth anything to begin with. I have bad credit, so I took the 4k and put a down payment on a different car from a different lien holder, because without doing that, my children go hungry and we become homeless, because I would lose my job if I had no transportation. Maybe not right, but I had to do what I had to do to take care of my own. It's a less that ideal situation for me, I'm not interested in lectures on that. I'm a single mom and I did what I had to do to feed my children in my opinion. I didn't take out a new loan with the same leinholder with the 4k added on because getting screwed once was one time too many. My question is...what happens now? Am I legally obligated to pay that $ back to the insurance company? I don't have it, It's not possible. And one final thing, I'm about to declare bankruptcy because I don't have a way to pay anybody back anything. I am not concerned with the leinholder and I do not feel bad because he screwed me first and I know I can any amount owed to him to the bankruptcy. I'm just concerned if this is insurance fraud? Otherwise, I will just add that 4k to the bankruptcy, no matter who it's owed to. Thanks for reading, appreciate your advice.
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