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Can My Car Insurance Company Force Me to Fix My Car Rather Than Taking a Payout?
Jan 19, 2021
Like most things insurance - it depends.
This is a good question that deserves a detailed response.
First, the insurance company doesn’t “force you to fix your car rather than take a payout”. Take a look at your auto insurance policy. Under the Physical Damage section, it will read something like the following:
First, the insurance company doesn’t “force you to fix your car rather than take a payout”. Take a look at your auto insurance policy. Under the Physical Damage section, it will read something like the following:
On the other hand, if there is a loan (lien) on the vehicle? Well, then, that’s a different story.
A
lender
will
likely “force” you to get the car fixed. After all, they are a part-owner, and the value of the vehicle is collateral on the loan.
Insurance companies are required to protect the lienholder’s interest. That obligation is typically satisfied in one of two ways:
Wait… there’s no bank involved? If you own the vehicle outright, you can ask to have the claim check made directly to you. That request should be honored without a problem.
You can then choose to repair the car - or - not.
Important to know that if you choose not to fix a vehicle following an accident, settlement amounts for future claims will be adjusted accordingly.
- Make the bank a payee on the check. In that case, the lender would need to endorse the check. Expect the bank to take a keen interest in the vehicle being repaired.
- Write the check out to the insured and a bonafide collision shop of your choice.
Wait… there’s no bank involved? If you own the vehicle outright, you can ask to have the claim check made directly to you. That request should be honored without a problem.
You can then choose to repair the car - or - not.
Important to know that if you choose not to fix a vehicle following an accident, settlement amounts for future claims will be adjusted accordingly.
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
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