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Auto Insurance Claims/Obligated to repair?
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Question
A friend of mine was in an accident. His vehicle received minor damage, and he's received payment from the other driver's insurance company to cover the damages. The car is older, and he's now having second thoughts about getting the repairs completed. Once he received payment, is he obligated to have the car repaired? I thought it sounded like insurance fraud, but he claims he's justified in keeping the money as the value of his vehicle has now decreased. Can you give me your opinion please?
Thank you.
Hi Sue,
Once the adverse insurance has issued a check for the damages and had your friend sign a release of all damage for property damage, he becomes free to spend the money any way that he chooses.
He can repair the car, pay a bill or take a vacation.
I hope that this information is found to be helpful. Your feedback by rating my response to this question will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
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Answers by Expert:
Bennie719
Expertise
I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. I am also thoroughly familiar with claims handeling procedures. Will answer questions related to the above.
Experience
Experience in the area: Served as an expert at askme.com from 7/2000 thru 10/2002 in the catagories of general insurance, auto and home insurance. Answered 422 questions before that site closed. Licensed in California since 1961, first in Life and Health for 2 + years and as a Property/Casualty Agent/Broker since 1964. I sold my business and took early retirement in 1998. Still maintain a valid California Property/Casualty Agent/Broker license.
I have been a volunteer at allexperts.com since 2002. I can provide assistance in the following fields: Property and Casualty Insurance, Insurance Law, Auto Insurance Claims.
Education/Credentials
not applicable
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