You are here:

Auto Insurance Claims/third party claim settlement

Advertisement

Expert: webfoot - 7/17/2006


Question
I recently had a a vehicle belonging to a state agency (in Califoria) run into my vehicle.  The collision was minor and no one was injured although there was about $1,500 worth of damage to my vehicle.  The insurance co. which handles claims for the state agency handled the claim promptly and sent me a check for the amount of the lowest of three repair estimates.  The check was made out to both me and the repair shop.  My questions is whether or not I have a right to have the check made out to me only and then make the decision whether or not to have the damage repaired and where, or do I have to have the repairs done at  the shop whose name is on the check?  When I asked the person handling the claim  she said that making the check out to both the claimant and the body shop was standard procedure and that she would have to check with someone else about making out a check to me only.  Although she did mentioned that if I did not want to have the damage repaired, they could consider issuing me a check for the amount of the repair estimate minus the labor.  Does this sound right?

Answer
Unless there is something really different going on in California,,,, oh wait; there's always something different going on in California.

Here is the Georgia answer.

I'm pretty sure the claims rep was mistaken.  As you are not the insured here, they have no duty to protect your lien holder with a two party check.  

You can have the check in your own name and are under no legal obligation to repair the car at all.  They have the duty to idemnify you for your damages and it is not their business whether you repair the car or not.   Do understand though that if you change your mind later and hidden damages are found, you run the risk of the statue of limitations running out.

Good luck!  

Auto Insurance Claims

All Answers

Answers by Expert:

Ask Experts

Volunteer

webfoot

Expertise

Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.

Experience

20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background

©2012 About.com, a part of The New York Times Company. All rights reserved.