Insurance Accident Check Payment

Reader Question: Thanks in advance for your help.

I DID complete the quote process you asked me to do, glad to help.

I received an insurance settlement check today to repair my car. The car is drivable. What could happen if I use the check for purposes other than repairing the car now?

Thanks again,

Tony

Hey Tony,

Hahahah…so you want to spend the cash on your Valentine instead of repairing your vehicle? How sweet! That can be a tricky subject, so you might want to ask your insurance company.

What I can tell you is if the check was made out to YOU personally and does not require a co-signer, like your bank or lien holder then the money is probably YOURS to use as you wish.

If you have a lien holder on the vehicle, they SHOULD have made the check out to you and to the lien holder. In most cases, they make the check out directly to the shop and the lien holder so you cannot run off with the cash. If the lien holder still owns the vehicle then the money should be spent to repair their vehicle.

So, in summary, I am not a lawyer, but if you own the car outright and they made the check out to you only I would say go and have fun.

Blessings,
Austin Davis