Can I use an insurance check to pay down my vehicle instead of fixing the damage?

Question

Geico is the insurance company. We got a lot of hail damage yesterday to our vehicle and we have full coverage. They are starting to process the claim and I have to go to their body shop to get the damage assessment next week, but I would rather pay down my debt on the vehicle rather then fix the hail damage on it. We owe around 4,000 still. Does anyone know if you have to fix the damage with this insurance company or can you use the money to pay off the lein holder?

Answer 1

yes

Answer 2

if the damage  is severe enough, say like totaled, or over so much the insurance will pay down the vehicle

Answer 3

Yeah, there isn't usually a clause that forces you to use the "payout" for actual repairs.

Also, they often ASK if you want to get it fixed by one of their certified shops... (they get a better deal)....but then the payment usually goes right to the company.

Answer 4

Yep...you'll get a check.  You could go shat it away at the poker table & they won't know.

Answer 5

You do not have to fix the car - you can use the money to pay the car off, or do whatever else you want with it.

HOWEVER.  Any subsequent claims you might have, the company can subtract that check for damages they gave you, from the actual cash value of the vehicle, OR, they can flat out delete the collision and comprehensive coverage from the car.  

In other words, if the ACV of the car is $6,000, and you have $4,000 of body damage, they write you a check for $3500 (less your $500 deductible).  Now, someone smashes into your car next week, while it's parked.  It's not worth $6,000 any more, but $2,000.   Less your $500 deductible, they total it out giving you a check for $1500 - and you have to turn the car over to them.    Or you keep the car for salvage value, and get a check for $500.  

You have to balance out the acv of your car, the possiblity of a total loss next week, and the possibility of losing the physical damage coverage, with the payoff of the loan.

Answer 6

you can use it for what ever you want that is why there is so many dented cars everywhere!

Answer 7

Yes you can.

Answer 8

They will send you the check...it is yours...just don't try to reclaim the same damage down the road!

Answer 9

I got a check for something similar one time & I used it for personal reasons. If they sent you the check, you can use it for yourself. If they were insistent on you using it on your car, they would have sent payment directly to the body shop.

Answer 10

You can use the money for whatever you want if you own the vehicle and are not leasing.

Answer 11

Yes you can.

But if you don't fix the car and get the new body job inspected (by geico), the next time you get any damage, they will NOT cover that much (assuming the damage was from the first time and not fixed).

Good Luck...