The other driver was at fault, and their insurance sent me a check that covers the repair estimate from their adjuster for my car. However, I found an auto body shop that can do the repair for less, so I can use the extra money from the check to get the car’s interior cleaned. Should I inform the insurance agent? Am I crossing any legal or ethical lines here?
3 Likes
Hello people, Yes, you can cash a check from a car insurance claim and use the money however you want but there are some things you will have to consider If you have a loan on your car, the lienholder usually the bank or finance company may be listed as a payee on the check. In this case, you will need their endorsement to cash the check, and they may require that the funds be used for repairs to maintain the value of the vehicle, If the check is made out solely to you and you own the car outright no lienholder, you generally have the freedom to use the funds as you see fit.
1 Like
You are under no obligation to have the car fixed if you own it outright and have no outstanding debt on it. What you do with the money is irrelevant to them.
1 Like
Yes, you are free to spend money whatever you like. The check is made out to you; that’s your money.
1 Like