After an auto accident, your car insurance could pay you to repair all of the damage. Many times, the insurance company will simply give you a check for the estimated amount of damage to your car. When you receive this check, you may be tempted to simply keep the money and avoid repairing your car.
Getting the Money
How you receive your money will depend on what type of claim you have filed. If you were in an auto accident, it may take some time to get the claim settled. You may have to be paid for medical bills and for the damage to your car. Eventually, the adjuster will settle on an amount with you and send you a payment. In some cases, the insurance company will pay a repair shop directly. If you receive the check, it is up to you to get the repairs done.
Hail Damage
If your car is damaged in a hail storm, the claim process could be handled differently. In a massive hail storm, many cars are typically damaged at the same time. Because of this, the insurance company will have a large number of claims to handle. In some cases, the insurance company will set up a drive-through claims center to handle all of the claims from the storm. In this case, the company will assess the damage and issue checks immediately. If a large number of claims were not filed, you may simply have to meet an adjuster and he will write you a check for the damage.
Auto Lender
When you still owe money on your car and the damage is significant, the insurance company may need to issue the check in your name and in the name of your auto lender. You will then need to have the check endorsed by someone from your lender to release the funds to you. If the damage is significant, the lender may require you to repair the car with the funds from the insurance company.
Keeping the Money
If you only have a small claim and an auto lender is not involved, you may have the option of keeping the money and not repairing your car. When you do this, the insurance company will not give you any money for the damage if you file another claim in the future. The insurance company will subtract the amount it has already paid on the previous claim. This prevents the insurance company from paying for the same damage twice.
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