Insurance claims check without lien holder?

Car was scraped and dented, repair cost is 2000 dollars. If their is a loan against it. Can they just write the check in my name so I don't have to deal with the finance company which will take weeks. How does the other persons insurance know the car is on a loan ? And if it's under 3500 can they just write it out in your name to get the car repaired yourself ?

5 Answers

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  • lucy
    Lv 7
    3 years ago

    The easy way is to issue the check 2 party, to you and to a body shop. That way, when repairs are done, you sign off on the check to the body shop and go on your way.

    Now, with your (own) insurance, when there is a lien, then they must issue all checks 2 party, be it to you/body shop, or to you/lien holder. Both ways guarantee that the repairs are completed.

    But in this case, since this is 3rd party (not your insurance) paying, then they can issue you a check to you only, and if you want, can take the money and run and not fix your car and it is legal.

    The other insurance does not give a darn, if you have a loan or not, -no contract with you and the lender ,(unless) in this accident, your vehicle is totaled, then, they would issue you a check to you and the lender, since the insurance needs to get the title from the owner (lender) for paying on the totaled car.

    Source(s): retired auto adjuster
  • Anonymous
    3 years ago

    NO ! Any check MUST go to your lien holder. If you attempt to circumvent the lender and get the check yourself your car could be repossessed and/or you will be sued. Bottom line. You would regret it

  • Mr.357
    Lv 7
    3 years ago

    The check will be either to you AND the lien holder or to the repair shop. The lender could come back against you AND the insurance co if their interests are not protected.

  • 3 years ago

    If it's a repair job, nobody cares about the lienholder. The lienholder only gets involved if it's a total loss. It doesn't matter if the claim is paid by your insurance company or the other guy's insurer, because the lienholder doesn't care about repair jobs.

    The insurance company probably won't make the cheque out to you, they'll pay the repair shop directly and be done with it.

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  • 3 years ago

    Without knowing which insurance company you and the other driver are with, and what state/province/country you are in, there is no way to even guess.

    Insurance companies always know if a car has a loan balance on it, because they have a need to know that info.

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