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How does a car insurance claim work?

We filed a claim with our insurance company due to extensive hail damage, and they had us come in so they could inspect the car. They handed my husband a check that has his name and our financers name on it. Do we just put that into our bank account and pay the difference? This is the first time that we have had to do this, so I don't really know what the steps are. Thanks for your help.

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Asked by MamaSince08 at 5:01 PM on Dec. 11, 2010 in Money & Work

Level 1 (-1 Credits)
Answers (5)
  • Because the lien holder owns at least part of the vehicle, the check has to be made out to them also and they're entitled to know that you've had the car repaired. And you are legally obligated to do so as long as you have a lien on the car.

    The insurance adjuster has given you the amount of $ he/she thinks it will take for the car to be repaired. If, when you take the car in it turns out to be more, usually the mechanic or body shop will contact the insurance company directly and put in an additional claim.

    But, call your insurance company and find out if it is OK to deposit the check and make sure that cashing the check does not obligate you to accept only this amount if, by chance, the repairs are actually more.

    Answer by sweetpotato418 at 5:42 PM on Dec. 11, 2010

  • Yes, that is how it works. If it is made out to the financer also, they might be expecting you to take the car to the dealership to have their people work on it.

    Answer by HotMama330 at 11:32 AM on Dec. 12, 2010

  • The company that holds your loan will need to endorse the check for you to deposit or cash it, at least that's how it works with our homeowners insurance.

    Answer by andrea96 at 2:58 PM on Dec. 12, 2010

  • OK, awesome. Thank you. We need to take it to the dealership and see what they can do. Gotta love weird weather in Arizona. ;)

    Comment by MamaSince08 (original poster) at 3:19 PM on Dec. 12, 2010

  • You will most probably need your financier to endorse the check, and also if the check amount is less than the actual repair bill, they will have to file an additional claim for the balance amount of the repairs.



    Answer by ariel.hoyle at 2:11 AM on Dec. 15, 2010

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