{"id":854,"date":"2016-03-24T17:44:22","date_gmt":"2016-03-24T17:44:22","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=854"},"modified":"2025-05-02T20:28:12","modified_gmt":"2025-05-02T20:28:12","slug":"can-insurer-ask-for-money-back-if-i-dont-fix-car","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/can-insurer-ask-for-money-back-if-i-dont-fix-car\/","title":{"rendered":"Can My Insurer Ask for the Money Back If I Don\u2019t Fix My Car?"},"content":{"rendered":"
It may be hard to believe, but there are drivers out there who have never had to file a claim for an automobile accident. Unfortunately, that eliminates most of us. But, for those of you who may lose sleep at night wondering if it\u2019s okay to keep the cash you were paid for the damage done to your vehicle or if you have to repair it for fear your auto insurer<\/a> will ask for the money back, read on.<\/p>\n There are actually a number of factors to consider, some you can control and others you may have no choice as to whether you fix your vehicle or not.<\/p>\n In other words, is there an active loan on the vehicle? If you\u2019ve just purchased a new car and are paying for it over time or you\u2019re leasing one, you\u2019ve got an active loan. This is a situation that you typically can\u2019t control. Wreck the lender\u2019s car and it\u2019s your immediate responsibility to get the vehicle repaired to their satisfaction in a timely manner.<\/p>\n In fact, most lenders will require you to list them on your auto insurance policy as a loss payee to make sure full coverage, including collision and comprehensive insurance<\/a>, is in effect at all times. Answer: You have no choice \u2013 you have to repair the vehicle.<\/p>\n If you own your vehicle free and clear and are carrying collision and comprehensive insurance coverage, you can generally take the claims check and keep the cash.<\/p>\n However, whether the check goes directly to you or your insurer has a policy of paying the body shop instead of the claimant is another story. The state you live in may require car insurance companies to include a clause in your policy that requires the check to go to the repair shop assigned with fixing the damage to ensure your vehicle is repaired and road worthy. Answer: If the check is handed to you, what you do with it is up to you. On the other hand, if the check goes to the repair shop, you\u2019re out of luck.<\/p>\n At your insurance company\u2019s discretion, they may require that you make all necessary repairs to your vehicle. Failure to do so could result in the discontinuation of your physical damage coverage \u2013 the comprehensive or collision insurance<\/a> portion of your policy.<\/p>\n From your insurer\u2019s point of view, if they pay you for a damaged front bumper and grill and you don\u2019t repair it, then you\u2019re involved in a second accident that compounds the existing damage, you\u2019re asking them to pay you again for the pre-existing damage.<\/p>\n Not only are you risking the denial of your claim, but your insurance company may also look at you in a very unpleasant light, which could include fraud for financial gain. You don\u2019t want to go there. Answer: What you decide to do with the check they give you is up to you, but you better drive carefully to avoid any serious repercussions.<\/p>\n By repairing the vehicle, you won\u2019t just make your car aesthetically pleasing again, but you may discover some underlying problem to the frame or other components that could put your safety at risk.<\/p>\n As tempting as it may be to use the money your auto insurance company<\/a> hands you for a family trip to Disneyland, give it some thought before you do something you might regret later.<\/p>\nWho Owns the Vehicle?<\/h2>\n
You Own the Vehicle Free and Clear<\/h2>\n
Repairs Required to Keep Comprehensive or Collision Insurance Coverage<\/h2>\n
Possible Underlying Problems<\/h2>\n