Expert: Charlie Barone - 10/29/2009

Question
Hi,
 I have a question about a claims check. I was in a car accident a week ago. My insurance co. issued a check for the damage to myself and my lien holder. Do I send the check down to my lien holder and have them sign it and send it back to me? At this point, I have no idea where I am going to get my car repaired. All the places my insurance co. recommended are no where near me. The closest one is 45 minutes away. So, what happens now? Does the loan co. hold the check until the repairs are done? I have never had to do this before, so I don't quite know what to do. I have the estimate from the insurance co. Do I send that to my lien holder with the check?

Answer
First of all, find a shop that you trust or one that is recommended by the dealer that sold you your car. One of the insurance company's preferred shops may not always have your best interest in mind and may be giving discounts to the insurance company.

Contact your lienholder and see what the process is for endorsing the check. Some may want a signed certificate of satisfaction from the body shop signed by you, others may require an inspection of the car once it is completed.