Expert: Charlie Barone - 6/18/2009

Question
"hi, my name is jorge, i'm a Oregon resident and i am insured by american family. my vehicle was in a minor accident and i filed a claim.the total damage was set at $3,286.00 after deducting my $500.00 deductible. the insurance issued me a check; however, i have a loan on this vehicle and the check was issued to the lender and myself. the car is not a total and i want to get it repaired but now i can't cash the check(i decided to not have my car repaired at a shop my insurance uses)is there any law prohibiting my insurance from issuing solely myself on this check if i have a lein on the vehicle? and if so are there any ways around this?"  

Answer
Jorge,

You can take your car to any shop you want---it's your decision entirely. The insurance company has agreed to protect the lienholder on your car by requiring that any damage is repaired so that their collateral is worth what the loan balance is. However, if the damage on the car is minor and the value of your car does is more than the pre-loss value less the cost of repairs, then you may be able to convince the lender to sign off on the check. You will have to get an appraisal from someone with authority in these matters in order to have the bank sign off on the check.

Charlie