Expert: Anne - 4/16/2010

Question
I am getting my car fixed after a small accident. Do i have to use a "auto body repair shop" or can I use an individual? There is guy here at work that does repair work on cars and builds old classic cars, he said he would do it and I trust him, will the insurance company allow me to do this? Can they tell me no? Thank you for your help!

Answer
Hello Sally,

It depends. If this is a third party insurance company (say, the insurance company of the person that hit you), then it does not matter. They will write an estimate and they will pay you that amount. You do as you please with that money (give to a friend, keep it, bodyshop, etc). You do want to request cash payment.

If this is your own insurance company, however, they may give you problems with this. Most auto policies protect the lien holder (the bank, if you have loan) by having different clauses, see: http://www.auto-insurance-claim-advice.com/Financial-Responsibility.html - if you have bank loan, then the insurance company may make a payment either to a bodyshop (an establishment) or it may make a payment to you and the the bank, this way you must get the bank's permission to cash the check. This would make your situation difficult as the bank would likely put add the funds to your loan and not give you the funds back.

If you don't have a loan, then you can also request cash.

Good Luck
Anne,
http://www.quirogalawoffice.com/