If someone hits your car, does their insurance company have to give you the check?
Question:
Any other time someone else has damaged my car, their insurance sends the check directly to ME, for me to do what i want with the money and get it fixed where I want to.
I am having problems getting her insurance to send me the check, and I dont want the work done where they want to send the check: I only went there for an estimate.
What is the law on this? I have always had insurance just mail the money to me directly. What law can I use for this? I am in Wisconsin.
Answer:
People are giving you RIDICULOUSLY bad answers here; don't get a lawyer and don't call the BBB. It sounds like you just have a miscommunication.
Pick up the phone and call the adjuster. Say, "Mr/Ms Adjuster, I do not want to have my vehicle fixed at Shop X, and I haven't decided yet what I want to do about my repairs; please advise what I need to do to get you to just issue me the check directly."
Period.
Since you're dealing with the other insurance company, not your own, that's all you have to do. Only your OWN INSURANCE COMPANY has to protect the leinholder. You have no contract with the other person's insurance company.
Now, they MAY have you meet with an adjuster to get another estimate done -- it sounds like they'd been under the impression you wanted to use this shop and they had a previous relationship with them or a Direct Repair contract. If that's the case, they'll do a more shop-neutral estimate through an adjuster and cut the check off of that.
They will not pre-pay rental, however. When/if you go to get the car fixed, you'll have to call them back regarding rental procedures.
No big deal and no need to make this any harder that it already is.
Get moor than one estimate demand your money be assertive.
I'd imagine that they have to send it to you, but I'm not sure.
The best bet would be to talk to a Lawyer though, or some free legal advice. People will guess here, and make it fact.
I think that is the way they mostly do it. I had the same thing happen to me.
iv found over the years that ins companys can do what they want legal or not. You can sue them but you will spend more then you get..Go to the auto body and see if you can talk them down in price and split the difference..like by using imported or used parts for the repair...
Call the Better Business Bureau. Tell the insurance company your intentions.
I believe that since this is the estimate that you gave them and they accepted that this is who the check will go to for your car repairs. Did you sign a release form or any other document on this check? If you did I don't think there is much you can do. You can try calling the Insurance Bureau in your community and see if they can advise you properly.
Due to the large amount of fraudulent claims insurance companies now do just what you have said, its to stop people getting high quotes, getting the cheque and going to the back street garage or doing it themselfs and pocketing the money left over.
If your CURRENT car is being financed, the insurance company has to make the check out payable to: (( repair facility of YOUR choice ))
Why? Because the car is financed and they have to enforce that it be repaired. If you don't repair it and they need to repo it one day, they would be getting a crashed vehicle. So the only way they can assure it gets fixed is by paying the repair facility directly.
If you've gotten checks made out to you, and YOU in the past it was probably because the vehicle was under YOUR name (the title)
The cost of damage is assessed by an independent assessor after the workshop had submitted the cost of repair to the insurance. The is nothing wrong the insurance foot the repair bill directly to the workshop. You can't make profit out of an accident by claiming the agreed amount but paying much lesser at another shop. however you can claimed the lost of the use of your during the period of repair.
You are certainly entitled to use whatever repair show you wish. If your car is financed or leased, though, the insurer will often make the check out to you and the body shop as per agreement with your lienholder/lessor. Often they make the check out to you and the lienholder and you have to go through the rigamarole of getting them to sign off on it. At the very least you need to be a payee onthe check because you should not sign the check over to the body shop until the repairs have been completed satisfactorily.
If you own the car free and clear you can insist the insurer make the check out directly to you alone, based on the amount you've agreed upon. After all, whether or not you decide to fix the damage is up to you, as long as you are not contractually obligated by a lienholder or lessor to fix it.
Good luck!
OhSo_quiet's answer is right on the money. So go back up and re-read it.
I work in insurance too and his answer is 100% correct.
Anytime anybody has a question/issue about a claim: pick up the phone & call the adjuster!! It's that simple.
As a claimant, that insurance company has no duty to protect your lien, and can pay you directly. Now, if you had a lien, and your own insurance company were paying for your repairs under your collision coverage they have to protect your lien holder and therefore would have to pay the shop or the lienholder as a co-payee.
This begs the question: how many accidents have you pocketed checks for, and would any of the checks have been issued for parts of a car that were damaged more than once? I knew a fellow in Edmonton that received a check for damage. he didn't repair it, and was hit again by someone insured with a different company, in the same spot, at the same intersection. He got a check. Again, he didn't repair it, and was hit yet again. This time he got the cops who investigated the first accident. They told him if he had another, on the same part of the car, and didn't have proof it was repaired, they wouldn't release the accident report to him, (or the insurance company) no matter who was at fault. And please remember, each state and province may have some different rules, rights, and obligations as regards auto insurance. I am an insurance broker, but I am only an expert on what happens in my jurisdiction.
It is your loss. Therefore, you should be paid for your loss, not the body shop that gave the estimate...UNLESS...
If you are making car payments and the lender requires certain things be done for your loan, they, as legal owner of your vehicle, can insist the check go directly to the body shop to insure the vehicle IS fixed and to protect their investment.
So, if you have a loan, read the agreement. If not, tell the insurance to get you a check.
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