To Whom Will an Auto Insurance Claim Check Be Made Out?

If you ‘ve ever actually read your policy, you know car insurance can be very complicated, particularly when it comes to filing claims and receiving an policy claim check mark. There ‘s truly no way around it, though. It ‘s complicated by nature. One of those details has to do with who actually receives payment when a policyholder makes a claim .

Key Takeaways

  • If the other driver is at fault in an accident, their insurance company pays you for damages if you own your car outright.
  • If you have a car loan, the payment is made to both you and the lienholder, who also signs the check to ensure you use the money to pay for repairs.
  • If your car is totaled, your insurance pays you the car’s cash value minus any deductible, and you forward the check to your lender to pay your loan.

Who Is Paying the claim ?

There are a number of basic factors involved in determining who gets the money. The first has to do with who is actually paying for the damages. This about constantly depends on who caused the accident, unless you live in a no-fault country such as Michigan. If the guarantee ( that ‘s you ) is at fault, then your indemnity company will be footing the repair charge.

If it ‘s the other driver ‘s fault, the other driver ‘s insurance company is on the hook for the expenses. This is known as a “ third-party ” claim. That is, you, the damaged party, are seeking payment for your damages from the at-fault driver and their policy company—two parties with whom you have no contractual agreement ; hence the term “ third base party. ”

Since there ‘s no contractual agreement, the at-fault driver ‘s insurance company has no obligation to pay anyone other than you, so the settlement check should be made out in your name alone, even if there ‘s a lien on your car .

When There ‘s a Loan on Your car

Things can get a small complicated if there ‘s a lend on your car. Your insurance company knows there is a loanword on your vehicle and maintains information on that loanword. therefore, when a policyholder makes a claim for damages, the policy caller normally will make the claim check out to both the cover and the spleen holder. Since the spleen holder continues to have an concern in the guarantee vehicle, it wants to be indisputable the title payment actually is used on repairs and not on a policy holder ‘s raw ultra-HD television receiver or vacation in the Bahamas .

so, when the guarantee receives the claim match from the insurance company, they will need to get the lienholder to sign the assay in order to cash it and pay the repair denounce. If your vehicle is a entire loss, the insurance caller will write the assay for the vehicle ‘s actual cash value ( ACV ) minus your deductible, and send it to you. You then will sign the check and forward it to the lender to pay off the loanword .

When You Own Your car outright

If you own your car outright and there is no loanword involved, the insurance company will write the see immediately to you. But there is one identical authoritative thing to keep in beware. If you decide not to use the proceeds from your claim payment to fix your vehicle, you are likely to run into some perturb with your policy caller if you get into another accident .

That ‘s because they will not pay for any preexistent damages. In other words, the insurance company will make a determination as to whether damages to your vehicle were caused by the most holocene accident or were there ahead. You can be certain that if there is any uncertainty, they will attribute the price to the anterior accident and deny to pay. Who can blame them ? They paid for them once already. so if you are thinking about not fixing your vehicle when you get your claim check, you might want to reconsider .

frequently Asked Questions ( FAQs )

Who gets the insurance check if your car is totaled?

If your car is totaled, your insurance company will send you the policy check mark. If you placid owe money on the car, the determine may be made out to you and your lender. If your car is paid away, the arrest will be made out entirely to you .

How long does it take to receive a car insurance claim check?

Depending on where you live and which insurance company you use, it can take a few days to respective weeks to receive an policy claim check. Your state ‘s department of policy will have more information about any legal requirements for insurers. For exercise, in New Jersey, car insurers have 45 days to resolve claims from a third party .

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