Expert: Doctor Settlement - 5/18/2006

Question
We recently had a hail storm that came through where we live. We had a large amount of hail damage to our car. We filed a claim with our insurance company. They asked us if we wanted the check made out to us and the body shop or us and the company that has the loan on our car. We said the body shop. I called the company that has the loan on our car a few days later. I didn't realize we owed very little on our car. I would like to just pay the car off and keep the remainder of the money. Can I do this? I told the body shop what I wanted to do. He refuses to sign the check unless we give him half the money. He says this the amount he would have to pay taxes on.  Do I try to get my insurance company to reissue a check? Will they even do that? What do I do now? I have a 04 chrysler sebring.  

Answer
Dear Shelly,

Did the auto body shop do any work on your car?  If so, you have to pay them.  If not, call the adjuster and let her know what the auto body shop is doing.

She can use her influence to free up your check or cancel that check.  

Yes, you may keep the check and not get any repairs done.  The insurance company is going to pay for the estimated cost of hail damage repairs and what you do after that is going to be your business.

A last choice is to make a complaint to your sheriff or prosecuting attorney since (again, assuming the auto body shop did not do any work) keeping your check amounts to theft.  

I like the American made Chrysler Sebring.  Seems like a good looking car, and I hope your hail damage is not too bad.

Best Wishes,

Dr. Settlement, J.D.
http://www.SettlementCentral.Com