Expert: Bennie719 - 5/4/2009

Question
My car was struck while parked in front of my house.  It suffered only minor damage, and I have had an estimate done.  Does the insurance company issue a check to me for the repair or to the repair shop?  If they issue me the check am I obligated to have the repair completed?

Answer
Hi Stephen,
There are two ways to handle the settlement of this claim.  (1) You can file through your own insurance company, asking them to repair your car (less your deductible), do all the work to recover and then return your deductible.  (2) file a claim directly against the insurance company of the driver that hit your car.

If you file through your own company, their legal obligation is to repair your car.  You will be able to go to a shop of your choice and they will be paid by your company.  Once your company recovers from the adverse party, your deductible will be returned.

If you file directly against the adverse company, their only obligation is to issue you a check for an agreed upon amount after
comparing their estimate against the ones that you have secured and then negotiating an agreeable settlement amount.  They will issue a check solely to you for the agreed upon amount and you will be required to sign a release of all claims which states that even if you later find that the amount  you were pad is not adequate to repair your car (or additional damage is found) you can never go back
and demand additional payment.

If you cash settle with the adverse company, that money can be used any way that you see fit.

I hope that you find this information to be of help.  Your feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area