How to Process a Car Insurance Claim Check

So, your car got t-boned in a crash. Luckily, you survived. Unluckily, your car is totaled. But you’re smart and decide to file an auto insurance claim, ultimately resulting in a payout. You may wonder how much money you’re entitled to for the damage your car has suffered. Will it be directly transferred to your account? Or will it go to your lender instead?

Your head may be muddled with all sorts of questions in this regard. Fret not, we’re here to help pull you out of all this hubbub by offering a concise guide on how to process a car insurance check. Legal affairs can often get hairy but if you find yourself in a pinch, read on through to reach a swift resolution.

Let’s get on with it then.

Table of Contents

How to Get Paid for an Insurance Claim

Multiple answers factor into this equation. There’s not one specific road leading to an insurance claim and facts like whether it’s your car or not, or if your insurance company comes into play or not weigh heavily on the final decision. Regardless, let’s iron out the kinks:

You will get the insurance check directly delivered to your doorstep if your vehicle is paid off
If you’re still in the process of fulfilling your payments to the lender, chances are the insurance check will be sent to both you and the authorized lender
In case the car is leased, the check goes to you and the leasing company

Please note that if the insurance check has your leasing company or lender as the recipient, then they will have to endorse it in order for you to cash it. Sometimes this can lead to the recipient party wanting to get your car fixed themselves so that they can see through the repair scrupulously.

How to Get Paid With Someone Else’s Insurance Company

This situation differs from the one above and can be kicked off if another driver hits you and you file a claim against his or her car insurance. If this happens, there’s a big chance that the insurance check will be written only in your name.

However, if you’ve got a loan or lease, the insurance check may only be given to you on the condition that you’ll spend it on repairs. State regulations may also play a huge part in this.

The good news is that you won’t be required to pay a deductible for the insurance check but if the other driver’s insurance company does not agree that their driver is 100% at fault then you might lose out on the money.

To stay on top of your situation and to have your insurance company always on the ready in a dedicated app, we suggest hooking up with AT&T. The company has a robust data service that will keep you connected with your insurance partner in case anything happens when you’re out of the house. Simply quick holler and enjoy a smooth onboarding experience. With the ISP available at your behest, the online features of the insurance app will instantly address any incidents on the road.

What Happens If You Involve a Repair Shop?

If a local repair shop is involved, there might be a chance that your insurance check will be sent to them instead. Especially if your auto insurance company lists them as a trusted business. The neat trick is that even if your insurer may recommend a specific repair shop, you can always counter their offer by selecting one of your own. Provided it is reputable enough.

Choose your repair shop wisely because it will ultimately decide how much money will go into repair costs. Some shops like to keep things minimal to get the process over. Hovering a watchful eye over how your car is handled is something you will have to be extremely precise with.

Could You Possibly Spend An Insurance Check If You Cash It Out?

This is entirely possible if the car is completely yours. Meaning you owe no money to your lender. This also applies if the money owed to you is from another driver’s insurance company.

However, if money is still owed, then your auto insurance company may place limitations on how the insurance check is handled. This may first and foremost restrict you from spending the amount anywhere else before the repairs are done.

Once the vehicle is dealt with, and there is still a substantial amount of money left, then you may spend it as you deem fit.

Conclusion

That’s about it for all the guidance we can dish up for you when it comes to processing a car insurance claim check. Primarily, we hope that the need to go through this process never arrives for you but in case it does, we hope this article can provide enough guidance for you to see the entire insurance process through.