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Auto Insurance Claims/accident
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Question
Can the lienholder request the vehicle insurance company to not authorize repairs to vehicle because the account balance (on the car)was not current at the time of the atcciden? My son's car is on my policy as "multiple car." On 3/18/10 I backed into it while it was parked. When my son reported the accident to the lienholder they contacted the insurace company about releasing payment for repairs to them. car Although the car is @ the body shop since since 4/19/10,repairs have not begin.
They cannot tell them not to authorize repairs. But they can insist that the payment be made copayable to the lienholder and the owner. This protects them to ensure the vehicle is repaired. The vehicle is collateral on the loan and they need to make sure their collateral is repaired. It is very common for people to cash an insurance check and not repair their vehicle shortly before it is repossessed. This is how they try to prevent it from happening.
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Answers by Expert:
Claims Guy
Expertise
I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.
Experience
I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.
Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators
Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.
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