Cash reimbursement from insurance company instead of repairs?

Question

Hello:

My car was in an accident recently (it was rear-ended at a traffic light) & suffered minor body damage.

I wanted to know if it is possible to ask the insurance company (Farmers) for a cash reimbursement instead of having them pay for the repairs.

QnA

Answer 1

First, you absolutley have the right to request the check be made directly to you instead of paying for repairs at a body shop.

Secondly, if Farmers is the at-fault party's insurance carrier who is paying for the damages, you can get the check made out directly to you even if the vehicle is financed since they have no legal obligation to your lienholder. If Farmers is YOUR insurance company AND your vehicle is financed, they'll have to put to lienholder's name on it(by law).

And finally, if you own your vehicle outright, it doesn't matter who's paying for it because they can both pay it directly to you.

Answer 2

Sure,

The reimbursement is for the lost value of the car in essence.

But if you have the car financed, the bank my want it fixed.  Plus insurance companies have been known to write the check to the bank.

Answer 3

You need to read your policy. Some policies give an either/or option to the insurer-where they can choose whatever option they want--it depends on the insurance laws in your state. Now, it is also possible that you may elect to take the $ and not fix the damage, just know that if you do that, and your car is involved in another accident, you may be giving the insurance company an "out"--they may say they can't tell where the old damage ends and the new damage begins. So, you are best off having the repair.

Answer 4

Yes, but if there's a loan on the car, the check gets made payable to the lender.  And the insurance company can delete the collision and comp off your car, if you don't get it fixed.