Collision repair is expensive; you might get it done cheaper.
If you enjoy restoring cars and know perform collision repairs, you might prefer to do your own repair work after your car is in an accident, rather than hiring someone else to do it. But you still need materials, and the job will take time, so receiving money from your insurance company would be helpful. In some cases, you can settle your claim in this way.
Contractual Obligation
Auto insurance companies have a contractual obligation to settle your claim in a fair way, but your policy does not specify that you must repair your vehicle. In fact, as long as the insurance company pays you enough money to perform the repairs, it generally doesn't care whether the repairs actually get done. In many cases, claims are less expensive for insurers when professional body shops don't get involved. You may be able to use your money to fix your car yourself.
Estimate
If you are capable of performing your own auto body repairs, you probably know diagnose collision damage and estimate the approximate repair cost. Therefore, when your insurance adjuster comes to inspect your vehicle and create an estimate, review it to ensure that it provides a reasonable repair cost. Advise the adjuster if you know of any damage that is not recorded on the estimate to ensure you receive an adequate settlement amount.
Lien Holder
You may not be able to keep the settlement money for yourself if you have a loan against your car. Most insurers must include the lien holder on any settlements until you finish paying the loan. Your settlement check will include your name and the lien holder's, and lenders don't often endorse such checks because they want to verify that their investment, your car, is repaired. Typically, your insurer can replace the lien holder's name with that of a collision repair center, but unless you own a repair shop you cannot keep the money for yourself.
Third-Party Settlements
If another person is responsible for the accident that damaged your car, you may have the option of filing a claim against his insurance company instead of your own. Since you do not have a contract with his insurer, it does not have a contractual obligation to include anyone on the settlement check except you. Each insurer may have its own policies about settle third-party claims, but if you get a check made out only to you, you can keep the money and use it to fix your own car.
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