Expert: Richard Hixenbaugh - 7/16/2011

Question
Good day, Mr. Hixenbaugh;

I live in Oklahoma and our vehicles were damaged in a hail storm a few weeks ago.  These vehicles were parked in my own home's driveway.  

I filed a claim with my insurance company and they sent me checks in the mail (so far I've received one and the other is in transit) to have the damage repaired.  However, I have two questions about this:

    1.  The insurance company is charging me a deductible for each of the three vehicles.  To my mind, this is unethical--if not downright illegal.  Since this damage occurred as a result of one hail storm, and since a hail storm is an "act of god", I don't think I should be paying a deductible for each of the three vehicles.

    2.  The first check I've received is made out to me and to the repair shop that gave me the estimate.  How do I get this check deposited into my bank account?  I'm 100% sure the repair shop won't sign the check, but I want this check in MY account and not theirs.  It's going to be a couple of months before all three vehicles can be repaired, and I want the interest generated by these large checks.

Thank you, in advance, for your advice.

Respectfully,

John A. Carter
Southwest Oklahoma

Answer
Hi John,

I understand your frustration, however, if you read your policy you will see that the deductible applies to each vehicle. Even though it was a single event it still applies to each vehicle. The policy is a contract that states what will be paid and under what circumstances. There is no distinction between an "act of God" or any other cause of damage.

As for the checks; if you have a lienholder listed on your policy, the insurance company is required to make any checks payable to either you and the lienholder or you and the body shop. This is to protect the interests of your lienhold to be sure the vehicle is repaired. Any interest you may have earned would be very small since most savings accounts these days earn less than 1% interest per year. If the cars are paid for and there is no lienholder you can ask that the checks be reissued in your name only.

I hope this helps
Richard Hixenbaugh