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Auto Insurance Claims/Spending The Money

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Expert: Charlie Barone - 3/17/2010


Question
My girlfriend was rear ended.  The driver who rear ended hers insurance company sent her a check in her name for $1100.  The damage that was caused turns out to be cosmetic only.  Is she free to spend the money how she pleases?  If she does use it to repair the car what does she do with the remaining money if the cost to fix it does not exceed the check amount?

Answer
Ryan,

That money belongs to her. It is a settlement and is hers to spend any way she likes. Chances are good, however, that there is more damage than what you can see and to have it properly repaired it will cost more. Insurance companies are not in the habit of giving away money in claims.

Charlie

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Charlie Barone

Expertise

For questions involving auto damage claims, collision repair, forensics, industry practices, we can help. We specialize in claims for loss of resale value (Diminished Value).

Experience

I have 30 years experience in the collision repair and body reconstruction field, both hands-on and from behind the desk. I hold a Master Certification from ASE in the Body and Paint category, as well as their certification in Estimating. I have authored over 120 feature and training articles for the largest trade journal devoted to the collision repair industry, and have given expert testimony in court dozens of times. Licensed physical damage appraiser in Pennsylvania and reciprocal states.

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