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Can My Car Insurance Company Force Me to Fix My Car Rather Than Taking a Payout?
January 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: ๏ปฟ
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: ๏ปฟ
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. ๏ปฟ
- 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. ๏ปฟ
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The year 1962 was marked by historic events—from the Cuban Missile Crisis to the passing of Marilyn Monroe. But while the world focused on these headlines, Lee A. Ryan was working alongside his brothers on my grandparents' farm when an unexpected opportunity arose—an invitation to join the insurance business. With no prior experience, no clients, and limited resources, my dad took a leap of faith and partnered with Nationwide Insurance to start an agency from scratch. Operating out of his home on Karr Valley Road in Almond, NY, he built his business one relationship at a time (some of whom are still clients!), laying the foundation for what would become a lasting legacy.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
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Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
