Expert: Anne - 6/18/2008

Question
My wife had a minor one car accident with her vehicle that she intended to trade in on a new vehicle. When she took the vehicle in for a repair estimate she was told it would cost about $1,500 to fix it. Meanwhile a man at the repair shop indicated he might want to buy the car as is and fix it himself. He would of course pay a reduced price. Does my wife have a right to receive some compensation for what it would cost to repair the vehicle even if she chose not to have it repaired? Or must she have the vehicle repaired to receive a settlement for the damages?

Answer
Hello Arthur,

It depends. If your car is paid for (no bank or lien holder or anything) then you can settle  your claim however  you want it. You get an estimate, prove that  you are the owner (title) and the insurance company gives you a check. Whatever  you do after that is your own deal.

If you have a loan, then you policy has a Financial Responsibility Clause or lien holder clause http://www.auto-insurance-claim-advice.com/Financial-Responsibility.html

This clause protects the bank and makes the insurance company pay the damage to both the bank and you so you need the bank signature to release the funds (i.e. the bank will cash the check but apply it towards your loan, you would get the excess if the balance on the car is low), if not then you will be driving with a dented car.

Or the insurance company will pay a repair facility directly so the bank knows the car is being fixed.

that is the only caveat that I am aware of.

Good Luck,
Anne
http://www.SpokaneLegalHelp.com