Expert: Richard Hixenbaugh - 7/4/2009

Question
I have a close friend that wanted to get out of a lease for a car but they weren't able to so I took over the payments and drove the car even though I couldn't add my name to the lease. I also insured the car myself and added the leasing company and my friend as additional insureds and loss payees. I had an accident with minor damage that didn't involve any other vehicles. I got an estimate and filed a claim with my insurance company. I'm waiting for the adjuster to look at it. How will the check be written out? If they include the leasing company on the check, will the leasing company endorse it even though I'm not on the lease?

Answer
Hi Rob,

The insurance company is required to protect the interests of the lienholder. The best thing to do is to select the body shop that you want to do the repairs and then ask the insurance company to issue the check to you and the body shop. You will then take the vehicle into the shop for the repairs and sign the check over to the shop.

I hope this helps
Richard Hixenbaugh