Can I keep my insurance check?

  • by qt_babydoll7
  • Oct 13,2017
  • 10 answers

y Neighbors child rode his bike near the side of my car and scratched the side of my car with his handle bars. There's no question to weather he did it or not seeing as their were adults who witnessed it and the mother too full responsibility and filed a claim as well as paid her deductible for the claim on HER renters insurance (home insurance, SF) I was contacted and told since it's not a auto insurance claim they don't send out adjusters and to get a certified quote from an auto repair shop and she'll issue the check for the quote. The quote to my surprise was well over $1k! Which to be honest wasn't that bad of a scratch and after a second opinion the amount seemed to be legit for the area I'm in. My neighbors insurance company contacted me and told me the quote was accepted and she would be paying me directly for the quote in the form of a check (made it in my name only)... now, my question is, can I just repair the damage myself and keep the claims check? Yes I have a lien holder on my car. But like I said it's a long scratch but something I can easily fix with one of those car scratch pens, and my car was purchased used with scratches already on it (some worse then the scratch itself) I don't want to end up getting in trouble for cashing in on it seeing as it's not my insurance and the claims representative got the repair shop to fax her the quote.


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Insurance Answers (10)

mbrcatz 4 hours ago

Yes. You can keep this. You don't even have to repair the damage.

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Sara Perez 37 hours ago

you can

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loanmasterone 38 hours ago

You are able to do with this check as you please. The insurance company has completed their end of the transaction. They have paid you for the damage to you car. It would not make any difference if the insurance company was the one you sued to insure your car or not.
Once the insurance company issue a check for the damage, you would have to make decision as to use the entire check, a portion of the check or none of the check to repair the damage to your car.
You have a few options after receiving the check from the insurance company.
#1. Find a local body shop and have the damage repaired.
If you find a body shop that would repair the damage for less that the check issued by the insurance company, you might select this body shop to do the repairs. You would be able to keep the difference. The insurance company would not require you to return the difference
#2. Not repair the car
You may decide to not repair the damage to the car. The insurance company would not require proof that you completed the repairs to your car..
I filed a claim against my home insurance policy to repair my roof. The cost to repair the roof was 50% of the check I was issued. The insurance company never sent an inspector to see if I had replaced the roof or not.
The same thing happened with an accident involving my car. I was sent a check to have the damage repaired to the car. I selected to sell the trade the car in and purchase a new car, without repairing the damage.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"

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Insurance Pickle.com 2 days ago

If you were required to fix it, they would have paid it differently. When you're driving down the road and see bumpers and fenders that are mostly duct tape....they kept the check too.
Do what you like. If it's deep and might rust, it'd be in your best interest to address it, but do what you like. I got paid for a moving company to replace my hard wood floors that they scratched. They were new when they did it, but worn by the time they paid. I bought a rug and can't even see where the original scratch was. Check was payable to me.

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Evan H 3 days ago

Insurance by definition is to restore you to the same finical state you were before the loss. In this case the loss is the paint damage to your car. While its basically assumed by the insurance company that you are going to use the money to fix the car, they do not require you to do so. Basically you enter a contract with the insurance company, you stay current with your monthly premium, they pay you cash to cover damages. Insurance payouts are yours to use at your discretion as its money paid to you, if you feel the money can be better spent on things other then car paint do so. This is not like you got a bank loan to fix the scratches in which case you do have to use the money for the reason you got the loan

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lucy 3 days ago

The insurance owes for the amount to fix the damages. The check is made payable to you, since is is NOT your insurance company, and they don’t give a darn if you have a lender or not.
You can take that check and have it fixed, or if you think you can fix yourself for less can do that. Or, you can take the check, (don’t) fix and cash the check and spend it whatever you like and it is legal, and insurance does not care, since once paid they are done and close their claim.
Here is where there could be a problem. You fix and not done correctly, or even if you choose to not fix and cash the check, then (if) you get damages (again) in that area, then your insurance or if other insurance pays, then they (subtract) out the amount of the (prior) damages to the (new) damages.
But, the biggest problem you have is if you are buying the car or leasing it? If buying, then once you pay off the loan, then no problem. But if leasing, then when the lease runs out, then the company (inspects) the car for any damages, and if any, then they will BILL you for those damages that did not get repaired.
Now the only other problem you could have is if you don’t fix, then your neighbors will be PO, since their insurance paid and you cashed the check. But even if they complained to the insurance company, then the insurance company would state, you caused the damages, we paid for the damages and if he wants to drive a damaged car vs fixing then that is his choice.

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Casey Y 3 days ago

Yup, shouldn't be a problem. The only problem you could encounter would be when you turn in the vehicle, they catch the damage and ask why it wasn't repaired properly...there is a reason those shops were charging $1k...its more than a pen can repair properly.
Now, you were not actually obligated to repair the damages, but you may be on the line if there is any issue with your ownership and the vehicle needs to be returned. They wont hit you with Fraud or anything like that, but they would make you pay for proper repairs at that time. If you finish paying it off though, there is nobody who could even question you.
Personally, deposit the check, buy the pen, repair and then go out for a nice dinner. With anything left over, pay down the car loan. Used car loans tend to have higher interest rates, not quite credit card high (so, pay off some of that if you have any debt), but higher than a new car auto loan tends to be.

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Eva 3 days ago

You don't have to prove you had it fixed. If it had been your insurance that covered it, they would require proof. If you did not supply it, then the next time you had a claim, they would deduct the first check from it.

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fire4511 3 days ago

The check is payment for the damage. There is no requirement that you get the damaged fixed. The money can be used for the repairs, or you can keep it to offset the loss of value of your car. As long as you are current on your payments, your lien holder will not care

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babyboomer1001 3 days ago

Accept the check and repair it yourself if you want to, or you can take it to the $1,000 place or any place you want. No, you are not obligated to have the $1k place repair the damage.

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