Expert: Richard Hixenbaugh - 10/8/2010

Question
Car got hail damage and i have american family insurance.  my agent said that the check will be made out to myslef and my lien holder and i can use the check for whatever i want but its up to my bank that financed my car (chase) to let me cash it or not.  Is there a legitimate reason I can tell chase what the check is for that they will accept?  Since my insurance agent says the money can be for anything.

Answer
Hi James,

Your insurance agent is wrong. If the check ws made out only to you and you had no loan on the vehicle then you can use the money for what ever you want. But, when the check is made out to you and the lienholder you must have the repairs done and then the lienholder will sign off on the check. Or you can sign the check ansd send it to the lienholder and they will apply it to your account.

You should contact your lienholder to see what their procedure will be.

I hope this helps
Richard Hixenbaugh