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Auto Insurance Claims/diminished value check

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Expert: - 7/15/2010


Question
Hi I just received a dimished value check made out to ford MC and myself. I am in Texas, ford is the lein holder. My insurance company told me to send ford a copy of the completely repaired auto invoice and a copy of the paid invoice for the repairs, the check which I was told not to endorse and a letter asking them to endorse the check and return it to me. Ford insists that I must endorse the check first and send it to them. I have read that as the owner I am entitled to the check and not them as the lein holder. what is right?

Answer
Hi Terri,

Texas law requires that an insurance comapny list the lienholder on any check when a lienholder exists. It is now up to you to negotiate with Ford to determine how the check will be cashed or applied. If you sign the check and send it to Ford, they will apply it to your loan, so you still benefit from the money.

I hope this helps
Richard Hixenbaugh

Auto Insurance Claims

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Richard Hixenbaugh

Expertise

Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.

Experience

I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.

Organizations
Society of Certified Auto Appraisers

Education/Credentials
Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.

Past/Present Clients
My company has done work for consumers nationwide.

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