Expert: Richard Hixenbaugh - 10/3/2010

Question
I was stopped for a school bus and I was rear ended. The other driver has state farm and they accepted 100% of the claim, and I will go through his insurance to avoid the claim or dedutible with mine. They sent an adjuster out to look at my car and they said the damages totaled 2,100. I told them I want to use my own shop and they were ok with that and I would recieve the direct payment. I still owe a little under $5,000 o my car but it is 10 years old and has 160,000 miles on it. Because of this Im not sure if I even want to fix the damages, the car is drivable and cosmetically the damages are not that bad. Will the insurance company address the check to me and the bank I have the car loan through since I dont own it yet or will the money come right to me?

Answer
Hi Jennifer,

How the check is made out will depend on your state laws. I know that in Texas they are required to make the check out to you and the lienholder. In other states they would make it out only to you.

You will just have to wait to see how it is made out when the check comes.

I hope this helps
Richard Hixenbaugh