What To Do With Car Insurance Money After An Accident
April 15, 2021
If you’re in a car accident and you file a claim with your insurance company, they will likely issue you a check for your damages. That check is to make necessary repairs to your vehicle or to replace it. But, whether you can keep the money or spend it, will depend on who owns the vehicle.
Find Out What Your Insurance Requires
Some insurance companies have policies that require you to use it for its intended purpose. Other companies may issue the check directly to the repair shop, which means you wouldn’t get a chance to cash it yourself. It also depends on whether you own the car, if you’re still paying on a loan, or if it is a lease.
If You Drive a Lease
If you drive a lease, it is best to make the repairs as you will have to turn in the vehicle, and without the necessary repairs, you could be charged to cover them.
If You Have an Auto Loan
If you have an auto loan, it is also likely that they will require that you make the repairs. This is because your lender requires that you carry full coverage on your vehicle so that it maintains its value. Plus, you’re more likely to continue making your car payments if you have a vehicle to drive.
Also, if you have an auto loan, it is likely that the lender is listed as the insured party, which means they may get the compensation payment. If this is the case, the insurance company will make the check out to both of you. They may require that they then sign off on the repairs before cashing the check.
If the car is totaled out, which occurs when the cost of the damages is more than a percentage of the value of your car, the insurance company may issue you a check. In this case, you will use it to pay off the loan. If there is anything left, it is yours to spend. Some insurance companies may allow you to pay off the vehicle and then for a small price, buy it back. It usually has a salvaged title though.
Read more: FAQ: Uninsured and Underinsured Motorist Accidents in Florida
If You Own the Vehicle
If you own your car, then you can spend the check how you want to.
Should You Keep the Check If It Is Possible?
If you own your vehicle and your insurance provider allows you to use the funds how you want, then you might wonder about the risk of spending the cash on other things. If the damages were cosmetic, then you may not care about repairs. If any engine or mechanical damages were done to your vehicle, it is best to have it repaired. Otherwise, it could be dangerous to drive.
Read more: 4 Steps to Obtaining Car Accident Compensation in Florida
Need Compensation to Repair Your Vehicle After a Car Accident?
If your insurance company does not give you enough for repairs, even though your insurance policy covers it, or your injuries exceed the amount available, you may need to work with a car accident lawyer. There may be other options available to collect the compensation you need to cover your vehicle’s repairs.
Contact a Fort Lauderdale Personal Injury Lawyer to Discuss Your Car Accident Case in Florida
Did you or a loved one sustain serious injuries due to a car accident in Florida? Don’t let the medical bills pile up while you wait for the negligent party or their insurance company to do the right thing. Right now, you need an aggressive personal injury attorney on your side, fighting to get you the compensation you need, want, and deserve. The skilled attorneys at Lawlor, White & Murphey represent clients injured because of a car accident in Broward County, Fort Lauderdale, Plantation, Pembroke Pines, and throughout Florida. Call (954) 525-2345 or fill out our online contact form to schedule a free consultation about your case. We have an office conveniently located at 2211 Davie Boulevard, Fort Lauderdale, FL 33312, as well as offices in Pembroke Pines, Weston, Coconut Creek, Plantation, and Pompano Beach, FL.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.