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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
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“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.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
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.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
