If you recently got into a cable car accident, or your cable car was damaged in a separate scenario like if a tree fell on it, and your car policy company came through with a claim check to cover the damages, then congrats ! Your cable car policy worked merely like it ’ s supposed to. But now you may be wondering if you have to use that check on the repairs, or if you have the option of fair keeping the money and living with the damages, or trying to fix your car on your own. The answer depends on whether or not you own the cable car outright. Compare rates and denounce low-cost car policy nowadays

Start calculator We do n’t sell your information to third base parties. If you have an existing lend on your cable car, the check must go directly toward car torso repairs, but if you own the car instantaneously, you may be able to spend the insurance money on whatever you choose, depending on how your insurance company paid out the claim. Key Takeaways

  • Some insurance companies send the claims check directly to the car repair shop, which means you wouldn ’ deoxythymidine monophosphate be able to pocket the money
  • If you lease or finance a car, your lessor or lienholder will likely get to sign off on how you use the claims payout
  • The alone time you can just pocket the claims money is if your state and policy policy allow it, and typically entirely if you own your cable car outright

When do I have to use an insurance control for car repairs ?

Pocketing the payout from an indemnity claim may seem tempting, but it ’ s not constantly an option. In many scenarios, you won ’ thyroxine be able to keep the money yourself, and in some cases, doing so would actually constitute fraud. You should always check your policy requirements when it comes to how you will be paid out in the event of a title. here are some scenarios when you can not keep the claim check for yourself .

1. When your insurance company sends the check directly to an car torso shop

Some indemnity companies won ’ thyroxine mail you the claim check directly, they may require that it go directly to a repair workshop as a way of ensuring you ’ re using the money for repairs. During the claims process, your supplier may give you the option of choosing one of their favored repair shops or picking your own. Your provider may make it a little more difficult for you to choose your own car body denounce by requiring you to get multiple appraisals, meaning it ’ s normally easier to go with one of their prefer vendors. If you go with an car body shop your provider has a relationship with, your provider will likely pay the shop directly .

2. When you have a lease or loan on your cable car

If you don ’ t own your vehicle outright and alternatively lease it or have a car loan, then the decision about whether or not to keep the money from an policy claim may not be yours to make. It ’ s likely that your loan or rent company is besides a named insured on your policy, and the arrest from an policy claim may be made out to both you and the ship’s company, so you ’ ll need them to sign off on the repairs before you cash the check. Your lender ’ s interest will vary depending on the company, but they may require that you use the control for repairs and send them software documentation proving that you followed through. Compare rates and shop low-cost car policy today

Start calculator We do n’t sell your information to third parties .

When can I keep the check and not fix my cable car ?

If you own your car outright and your insurance policy doesn ’ metric ton specifically require that the claims check go to your car body workshop, then the money from a call is yours, and you can basically do whatever you want with it. Your insurance company fulfilled their duty to you by paying out the claim, and, vitamin a long as your policy and your country ’ mho laws allow it, you can keep the money for other uses. If the damage to your car was just cosmetic and you ’ d quite spend the money for repairs on something else, you might choose to do this. adenine long as you ’ ve met your policy ’ south requirements, it ’ s not fraud for you to keep the money. however, it ’ s not always the best estimate. There are few things you should consider before deciding to keep the money .

  • once you ’ ve already claimed damage, you can ’ metric ton claim it again, even if you don ’ triiodothyronine use the resulting money on repairs
  • Claiming the same damage again on a future accident can induce you charged with fraud
  • not making repairs so you can use the claims money elsewhere could besides mean gambling with your safety

even if you think the damage to your vehicle from an accident or incident international relations and security network ’ thyroxine that bad, it ’ south even crucial to get confirmation from a professional before you decide to just live with it or attempt to repair it yourself. There could be more serious damage than you realize, which might wind up costing more money and headaches down the line if you don ’ deoxythymidine monophosphate fix it now .

What if the policy discipline is more than repairs ?

In short-circuit, yes, you do get to keep the money if the hindrance ends up being more than repairs. That said, since the indemnity company typically cuts you a bridle after the car body shop, claims adjuster, or appraiser inspects the damage and gives them an estimate, odds are the leftover money from the check will not be that much. however, you do not have to return that money to the indemnity company. Compare rates and shop low-cost cable car policy today Start calculator We do n’t sell your data to third parties .

Frequently asked questions

When a car is totaled, who gets the check?

If your car is totaled ( and your policy includes comprehensive and collision coverage ) you ’ ll pay your deductible and then your insurance company will pay you the prize of your totaled car. You ’ ll probably get what ’ randomness called the actual cash prize, meaning depreciation is factored into your reimbursement. If you distillery owe money on your car or it ’ s a lease, the arrest may go immediately to your lender or lessor, and if the value of your car is less than what you even owe, gap indemnity can make up the deviation and pay off your lend or lease.

Is it fraud if I don’t use the claim money to repair my car?

Laws and regulations regarding car policy claim checks may vary from country to state of matter. If you lease or finance your car, pocketing the call money may be considered imposter. however, if you own the cable car outright and the insurance company sends your claims check directly to you ( not an car body patronize ), then the hindrance is yours and you can use it how you want. Keep in thinker that not making necessary repairs to your fomite may be insecure ( and even illegal depending on the severity of the price ), and claiming the same damage again on a future claim would be considered fraud .

What if the insurance check is less than repairs?

If you don ’ deoxythymidine monophosphate believe you received the payout that you deserved, contact your policy claims department. Try to provide as much documentation of the earlier and after from the wrong. You may besides want to consider hiring an mugwump appraiser to get an extra quote for the repairs, which you can then bring to your insurance company to help make your case .

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