Expert: Charlie Barone - 11/29/2009

Question
I got into an accident 4 weeks ago. A car ran a stop sign and hit me. The driver took full responsibilty for the accident.  Currently, there must've been a miscommunication between insurance companies. His insurance company sent me a check to get my car fixed, and my insurance company sent me a check for the value of my car that deemed totaled. If i cash both checks, will i just have to pay one back, or can criminal charges be filed?

Answer
It is illegal to make a profit off of an insurance claim, so yes, you do risk having criminal charges brought against you. I assume you cashed both checks and suggest that you return the funds to your company, as it was likely to be the greater amount of the two checks sent. Take your car to a shop you trust and give them the estimate the at fault party's insurer wrote, but hold the money until the job is done and you are satisfied with the repairs. They may need to call the other party's insurer back to write a supplement for additional work that their appraiser overlooked.